10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file Number 001-11138

FIRST COMMONWEALTH FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

PENNSYLVANIA	25-1428528
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
601 PHILADELPHIA STREET    INDIANA, PA	15701
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (724) 349-7220

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
COMMON STOCK, $1 PAR VALUE	NEW YORK STOCK EXCHANGE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes  x No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨    No x

Note—Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x    No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x    No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this form 10-K. ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer x     Accelerated filer ¨   Non-accelerated filer ¨    Smaller reporting company ¨ Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨    No x

The aggregate market value of the voting and non-voting common stock, par value $1 per share, held by non-affiliates of the registrant (based upon the closing sale price on June 30, 2017) was approximately $1,235,796,411.

The number of shares outstanding of the registrant’s common stock, $1.00 Par Value as of February 28, 2018, was 97,523,651.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the definitive Proxy Statement to be filed with the Securities and Exchange Commission in connection with the annual meeting of shareholders to be held April 24, 2018 are incorporated by reference into Part III.

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

FORM 10-K

INDEX

PART I		PAGE
ITEM 1.	Business	4
ITEM 1A.	Risk Factors	15
ITEM 1B.	Unresolved Staff Comments	20
ITEM 2.	Properties	20
ITEM 3.	Legal Proceedings	20
ITEM 4.	Mine Safety Disclosures	20
	Executive Officers of First Commonwealth Financial Corporation	21
PART II
ITEM 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchase of Equity Securities	22
ITEM 6.	Selected Financial Data	24
ITEM 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
ITEM 7A.	Quantitative and Qualitative Disclosures About Market Risk	46
ITEM 8.	Financial Statements and Supplementary Data	47
ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	110
ITEM 9A.	Controls and Procedures	110
ITEM 9B.	Other Information	114
PART III
ITEM 10.	Directors, Executive Officers and Corporate Governance	115
ITEM 11.	Executive Compensation	115
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	115
ITEM 13.	Certain Relationships and Related Transactions, and Director Independence	116
ITEM 14.	Principal Accountant Fees and Services	116
PART IV
ITEM 15.	Exhibits, Financial Statements and Schedules	117
	Signatures	119

FORWARD-LOOKING STATEMENTS

Certain statements contained in this report that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among others, statements regarding our strategy, evaluations of our asset quality, future interest rate trends and liquidity, prospects for growth in assets and prospects for future operating results. Forward-looking statements can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements are based on assumptions of management and are only expectations of future results. You should not place undue reliance on our forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risk factors described in Item 1A of this report. Forward-looking statements speak only as of the date on which they are made. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

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PART I

ITEM 1.    Business

Overview

First Commonwealth Financial Corporation (“First Commonwealth,” the “Company” or “we”) is a financial holding company that is headquartered in Indiana, Pennsylvania. We provide a diversified array of consumer and commercial banking services through our bank subsidiary, First Commonwealth Bank (“FCB” or the “Bank”). We also provide trust and wealth management services and offer insurance products through FCB and our other operating subsidiaries. At December 31, 2017, we had total assets of $7.3 billion, total loans of $5.4 billion, total deposits of $5.6 billion and shareholders’ equity of $888.1 million. Our principal executive office is located at 601 Philadelphia Street, Indiana, Pennsylvania 15701, and our telephone number is (724) 349-7220.

FCB is a Pennsylvania bank and trust company. At December 31, 2017, the Bank operated 104 community banking offices throughout western and central Pennsylvania, 29 community banking offices in central and northern Ohio, as well as corporate banking centers in Pittsburgh, Pennsylvania, and central and northeast Ohio and mortgage offices in Columbus, Hudson and Dublin, Ohio. The Bank also operates a network of 148 automated teller machines, or ATMs, at various branch offices and offsite locations. All of our ATMs are part of the NYCE and MasterCard/Cirrus networks, both of which operate nationwide. The Bank is a member of the Allpoint ATM network, which allows surcharge-free access to over 55,000 ATMs. The Bank is also a member of the “Freedom ATM Alliance,” which affords cardholders surcharge-free access to a network of over 670 ATMs in over 50 counties in Pennsylvania, Maryland, New York, and Ohio.

Historical and Recent Developments

FCB began in 1934 as First National Bank of Indiana with initial capitalization of $255 thousand. First National Bank of Indiana changed its name to National Bank of the Commonwealth in 1971 and became a subsidiary of First Commonwealth in 1983.

Since the formation of the holding company in 1983, we have grown steadily through the acquisition of smaller banks and thrifts in our market area, including Deposit Bank in 1984, Dale National Bank and First National Bank of Leechburg in 1985, Citizens National Bank of Windber in 1986, Peoples Bank and Trust Company in 1990, Central Bank in 1992, Peoples Bank of Western Pennsylvania in 1993, and Unitas National Bank and Reliable Savings Bank in 1994. In 1995, we merged all of our banking subsidiaries (other than Reliable Savings Bank) into Deposit Bank and renamed the resulting institution “First Commonwealth Bank.” We then merged Reliable Savings Bank into FCB in 1997. We acquired Southwest Bank in 1998 and merged it into FCB in 2002.

We expanded our presence in the Pittsburgh market through the acquisitions of Pittsburgh Savings Bank (dba BankPittsburgh) in 2003, Great American Federal in 2004 and Laurel Savings Bank in 2006. These acquisitions added 27 branches in Allegheny and Butler Counties.

We have also focused on organic growth, improving the reach of our franchise and the breadth of our product offering. As part of this strategy, we have opened fourteen de novo branches since 2005, all of which are in the greater Pittsburgh area. As a result of our prior acquisitions and de novo strategy, FCB operates 59 branches and a corporate banking center in the Pittsburgh metropolitan statistical area and currently ranks tenth in deposit market share.

In 2015, we expanded into central Ohio through the acquisition of First Community Bank with four branches in the Columbus area. In 2016, we acquired 13 branches from FirstMerit Bank, National Association, in Canton-Massillon and Ashtabula, Ohio and in 2017, we acquired DCB Financial Corp ("DCB") and its banking subsidiary The Delaware County Bank and Trust Company with nine full-service banking offices in the Columbus, Ohio MSA. Additionally, since 2014, we have expanded our presence in this Ohio market by opening a corporate loan production office in Columbus and Cleveland, Ohio, and three mortgage loan offices in Hudson, Dublin, and Columbus, Ohio.

In January 2018, we announced the signing of a definitive merger agreement pursuant to which First Commonwealth will acquire Garfield Acquisition Corp. and its banking subsidiary Foundation Bank with five full-service banking offices in the Cincinnati, Ohio area. This transaction is subject to regulatory approval and is expected to close in the second quarter of 2018.

First Commonwealth regularly evaluates merger and acquisition opportunities and from time to time conducts due diligence activities related to possible transactions with other financial institutions and financial services companies. As a result, merger or acquisition discussions and, in some cases, negotiations, may take place and future merger acquisitions involving cash, debt or equity securities may occur. Acquisitions typically involve the payment of a premium over book and market values, and, therefore, some dilution of First Commonwealth’s tangible book value and net income per common share may occur in connection with any future transaction.

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Loan Portfolio

The Company’s loan portfolio includes several categories of loans that are discussed in detail below.

Commercial, Financial, Agricultural and Other

Commercial, financial, agricultural and other loans represent term loans used to acquire business assets or revolving lines of credit used to finance working capital. These loans are generally secured by a first lien position on the borrower’s business assets as a secondary source of repayment. The type and amount of the collateral varies depending on the amount and terms of the loan, but generally may include accounts receivable, inventory, equipment or other assets. Loans also may be supported by personal guarantees from the principals of the commercial loan borrowers.

Commercial loans are underwritten for credit-worthiness based on the borrowers’ financial information, cash flow, net worth, prior loan performance, existing debt levels, type of business and the industry in which it operates. Advance rates on commercial loans are generally collateral-dependent and are determined based on the type of equipment, the mix of inventory and the quality of receivables.

Credit risk for commercial loans can arise from a borrower’s inability or unwillingness to repay the loan, and in the case of secured loans, from a shortfall in the collateral value in relation to the outstanding loan balance in the event of a default and subsequent liquidation of collateral. The Company’s Credit Policy establishes loan concentration limits by borrower, geography and industry.

Commercial Real Estate

Commercial real estate loans represent term loans secured by owner-occupied and non-owner occupied properties. Commercial real estate loans are underwritten based on an evaluation of each borrower’s cash flow as the principal source of loan repayment, and are generally secured by a first lien on the property as a secondary source of repayment. Our underwriting process for non-owner occupied properties evaluates the history of occupancy, quality of tenants, lease terms, operating expenses and cash flow. Commercial real estate loans are subject to the same credit evaluation as previously described for commercial loans. Approximately 18%, by principal amount, of our commercial real estate loans involve owner-occupied properties.

For loans secured by commercial real estate, at origination the Company obtains current and independent appraisals from licensed or certified appraisers to assess the value of the underlying collateral. The Company’s general policy for commercial real estate loans is to limit the terms of the loans to not more than 10 years with loan-to-value ratios not exceeding 80% on owner-occupied and income producing properties. For non-owner occupied commercial real estate loans, the loan terms are generally aligned with the property’s lease terms and are generally underwritten with a loan-to-value ratio not exceeding 75%.

Credit risk for commercial real estate loans can arise from economic conditions that could impact market demand, rental rates and property vacancy rates and declines in the collateral value in relation to the outstanding loan balance in the event of a default and subsequent liquidation of collateral.

Real Estate Construction

Real estate construction represents financing for real estate development.  The underwriting process for these loans is designed to confirm that the project will be economically feasible and financially viable and is generally conducted as though the Company would be providing permanent financing for the project. Development and construction loans are secured by the properties under development or construction, and personal guarantees are typically obtained as a secondary repayment source. The Company considers the financial condition and reputation of the borrower and any guarantors and generally requires a global cash flow analysis in order to assess the overall financial position of the developer. 

Construction loans to residential builders are generally made for the construction of residential homes for which a binding sales contract exists and for which the prospective buyers have been pre-qualified for permanent mortgage financing by either third-party lenders or the Company.  These loans are generally for a period of time sufficient to complete construction.

Residential construction loans to individuals generally provide for the payment of interest only during the construction phase. At the end of the construction phase, substantially all of our loans automatically convert to permanent mortgage loans and can either be retained in our loan portfolio or sold on the secondary market.

Credit risk for real estate construction loans can arise from construction delays, cost overruns, failure of the contractor to complete the project to specifications and economic conditions that could impact demand for or supply of the property being constructed.

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Residential Real Estate Loans

In 2014, First Commonwealth reentered the residential mortgage business, after a strategic decision in 2005 to discontinue mortgage lending. Residential real estate loans include first lien mortgages used by the borrower to purchase or refinance a principal residence and home equity loans and lines of credit secured by residential real estate. The Company’s underwriting process for these loans determines credit-worthiness based upon debt-to-income ratios, collateral values and other relevant factors.

Credit risk for residential real estate loans can arise from a borrower’s inability or unwillingness to repay the loan or a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default and subsequent liquidation of the real estate collateral. 

The residential real estate portfolio includes both conforming and non-conforming mortgage loans. Conforming mortgage loans represent loans originated in accordance with underwriting standards set forth by the government-sponsored entities, including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association, which serve as the primary purchasers of loans sold in the secondary mortgage market by mortgage lenders. These loans are generally collateralized by one-to-four-family residential real estate, have loan-to-collateral value ratios of 80% or less (or have mortgage insurance to insure down to 80%), and are made to borrowers in good credit standing.  Non-conforming mortgage loans represent loans that generally are not saleable in the secondary market to the government-sponsored entities due to factors such as the credit characteristics of the borrower, the underlying documentation, the loan-to-value ratio, or the size of the loan. The Company does not offer “subprime,” “interest-only” or “negative amortization” mortgages.

Home equity lines of credit and other home equity loans are originated by the Company for typically up to 90% of the appraised value, less the amount of any existing prior liens on the property. Additionally, the Company’s credit policy requires borrower FICO scores of not less than 661 and a debt-to-income ratio of not more than 43%.

Loans to Individuals

The Loans to Individuals category includes consumer installment loans, personal lines of credit, consumer credit cards and indirect automobile loans. Credit risk for consumer loans can arise from a borrower’s inability or unwillingness to repay the loan, and in the case of secured loans, by a shortfall in the value of the collateral in relation to the outstanding loan balance in the event of a default and subsequent liquidation of collateral. 

The underwriting criteria for automobile loans allow for such loans to be made for up to 100% of the purchase price or the retail value of the vehicle as listed by the National Automobile Dealers Association. The terms of the loan are determined by the age and condition of the collateral, and range from 36 to 84 months. Collision insurance policies are required on all automobile loans. The Company also makes other consumer loans, which may or may not be secured. The terms of secured consumer loans generally depend upon the nature of the underlying collateral. Unsecured consumer loans and consumer credit cards usually do not exceed $35 thousand. Unsecured consumer loans usually have a term of no longer than 36 months.

Deposits

Deposits are our primary source of funds to support our revenue-generating assets. We offer traditional deposit products to businesses and other customers with a variety of rates and terms. Deposits at our bank are insured by the FDIC up to statutory limits. We price our deposit products with a view to maximizing our share of each customer’s financial services business and prudently managing our cost of funds. At December 31, 2017, we held $5.6 billion of total deposits, which consisted of $1.4 billion, or 25%, in non-interest bearing checking accounts, $3.5 billion, or 64%, in interest bearing checking accounts, money market and savings accounts, and $0.6 billion, or 11%, in CDs and IRAs.

Our deposit base is diversified by client type. As of December 31, 2017, our top ten depositors represented only 0.5% of our total deposits. The composition of our deposit mix continues to reflect an increased proportion of non-interest-bearing deposits and other transaction accounts and a lower proportion of more expensive time deposits.

Competition

The banking and financial services industry is extremely competitive in our market area. We face vigorous competition for customers, loans and deposits from many companies, including commercial banks, savings and loan associations, finance companies, credit unions, trust companies, mortgage companies, money market mutual funds, insurance companies, and brokerage and investment firms. Many of these competitors are significantly larger than us, have greater resources, higher lending limits and larger branch systems and offer a wider array of financial services than us. In addition, some of these competitors, such as credit unions, are subject to a lesser degree of regulation or taxation than that imposed on us.

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Employees

At December 31, 2017, First Commonwealth and its subsidiaries employed 1,298 full-time employees and 178 part-time employees.

Supervision and Regulation

The following discussion sets forth the material elements of the regulatory framework applicable to financial holding companies, such as First Commonwealth, and their subsidiaries. The regulatory framework is intended primarily for the protection of depositors, other customers and the federal deposit insurance fund and not for the protection of security holders. The rules governing the regulation of financial institutions and their holding companies are very detailed and technical. Accordingly, the following discussion is general in nature and is not intended to be complete or to describe all the laws and regulations that apply to First Commonwealth and its subsidiaries. A change in applicable statutes, regulations or regulatory policy may have a material adverse effect on our business, financial condition or results of operations.

Bank Holding Company Regulation

First Commonwealth is registered as a financial holding company under the Bank Holding Company Act of 1956, as amended (“BHC Act”), and is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (“FRB”).

Acquisitions. Under the BHC Act, First Commonwealth is required to obtain the prior approval of the FRB before it can merge or consolidate with any other bank holding company or acquire all or substantially all of the assets of any bank that is not already majority owned by it, or acquire direct or indirect ownership, or control of, any voting shares of any bank that is not already majority owned by it, if after such acquisition it would directly or indirectly own or control more than 5% of the voting shares of such bank. In reviewing applications seeking approval of merger and acquisition transactions, the bank regulatory authorities will consider, among other things, the competitive effect and public benefits of the transactions, the financial, including capital, position of the combined organization, the risks to the stability of the U.S. banking or financial system, the applicant's performance record under the Community Reinvestment Act ("CRA") and its compliance with fair housing and other consumer protection laws and the effectiveness of the subject organizations in combating money laundering activities.

Non-Banking Activities. In general, the BHC Act limits the business of bank holding companies to banking, managing or controlling banks and other activities that the FRB has determined to be so closely related to banking as to be a proper incident thereto. In addition, bank holding companies that qualify and elect to be financial holding companies such as First Commonwealth may engage in any activity, or acquire and retain the shares of a company engaged in any activity, that is either (i) financial in nature or incidental to such financial activity or (ii) complementary to a financial activity and does not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally, without in either case the prior approval of the FRB. Activities that are financial in nature include securities underwriting and dealing, insurance agency activities and making merchant banking investments.

To maintain financial holding company status, a financial holding company and all of its depository institution subsidiaries must be well capitalized and well managed. A depository institution subsidiary is considered to be well capitalized if it satisfies the requirements for this status discussed in the section below captioned "Prompt Corrective Action". A depository institution subsidiary is considered well managed if it received a composite rating and management rating of at least satisfactory in its most recent examination. A financial holding company’s status will also depend upon maintaining its status as well capitalized and well managed under applicable FRB regulations. If a financial holding company ceases to meet these capital and management requirements, the FRB’s regulations provide that the financial holding company must enter into an agreement with the FRB to comply with all applicable capital and management requirements. Until the financial holding company returns to compliance, the FRB may impose limitations or conditions on the conduct of its activities, and the company may not commence any of the broader financial activities permissible for financial holding companies or acquire a company engaged in such financial activities without prior approval of the FRB. If the company does not return to compliance within 180 days, the FRB may require divestiture of the holding company’s depository institutions.

In order for a financial holding company to commence any new activity permitted by the BHC Act or to acquire a company engaged in any new activity permitted by the BHC Act, each insured depository institution subsidiary of the financial holding company must have received a rating of at least satisfactory in its most recent examination under the CRA.

The FRB has the power to order any bank holding company or its subsidiaries to terminate any activity or to terminate its ownership or control of any subsidiary when the FRB has reasonable grounds to believe that continuation of such activity or such ownership or control constitutes a serious risk to the financial soundness, safety or stability of any bank subsidiary of the bank holding company.

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Reporting. Under the BHC Act, First Commonwealth is subject to examination by the FRB and is required to file periodic reports and other information of its operations with the FRB. In addition, under the Pennsylvania Banking Code of 1965, the Pennsylvania Department of Banking and Securities has the authority to examine the books, records and affairs of any Pennsylvania bank holding company or to require any documentation deemed necessary to ensure compliance with the Pennsylvania Banking Code.

Source of Strength Doctrine. FRB policy has historically required bank holding companies to act as a source of financial and managerial strength to their subsidiary banks. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) codifies this policy as a statutory requirement. Under this requirement, First Commonwealth is expected to commit resources to support FCB, including at times when First Commonwealth may not be in a financial position to provide such resources. Any capital loans by a bank holding company to any of its subsidiary banks are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary banks. In the event of a bank holding company’s bankruptcy, any commitment by the bank holding company to a federal bank regulatory agency to maintain the capital of a subsidiary bank will be assumed by the bankruptcy trustee and entitled to priority of payment.

Affiliate Transactions. Transactions between FCB, on the one hand, and First Commonwealth and its other subsidiaries, on the other hand, are regulated under federal banking laws. The Federal Reserve Act imposes quantitative and qualitative requirements and collateral requirements on covered transactions by FCB with, or for the benefit of, its affiliates, and generally requires those transactions to be on terms at least as favorable to FCB as if the transaction were conducted with an unaffiliated third party. Covered transactions are defined by statute to include a loan or extension of credit, as well as a purchase of securities issued by an affiliate, a purchase of assets (unless otherwise exempted by the FRB) from the affiliate, certain derivative transactions that create a credit exposure to an affiliate, the acceptance of securities issued by the affiliate as collateral for a loan, and the issuance of a guarantee, acceptance or letter of credit on behalf of an affiliate. In general, any such transaction by FCB (or its subsidiaries) must be limited to certain thresholds on an individual and aggregate basis and, for credit transactions with any affiliate, must be secured by designated amounts of specified collateral.

SEC Regulations. First Commonwealth is also under the jurisdiction of the Securities and Exchange Commission (“SEC”) and various state securities commissions for matters relating to the offer and sale of its securities and is subject to the SEC rules and regulations relating to periodic reporting, proxy solicitation and insider trading.

Bank Regulation

FCB is a state bank chartered under the Pennsylvania Banking Code and is not a member of the FRB. As such, FCB is subject to the supervision of, and is regularly examined by, both the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking and Securities and is required to furnish quarterly reports to both agencies. The approval of the Pennsylvania Department of Banking and Securities and FDIC is also required for FCB to establish additional branch offices or merge with or acquire another banking institution.

Dividends and Stress Testing. First Commonwealth is a legal entity separate and distinct from its banking and other subsidiaries. As a bank holding company, First Commonwealth is subject to certain restrictions on its ability to pay dividends under applicable banking laws and regulations. Federal bank regulators are authorized to determine under certain circumstances relating to the financial condition of a bank holding company or a bank that the payment of dividends would be an unsafe or unsound practice and to prohibit payment thereof. In particular, federal bank regulators have stated that paying dividends that deplete a banking organization’s capital base to an inadequate level would be an unsafe and unsound banking practice and that banking organizations should generally pay dividends only out of current operating earnings.

A significant portion of our income comes from dividends from our bank, which is also the primary source of our liquidity. In addition to the restrictions discussed above, our bank is subject to limitations under Pennsylvania law regarding the level of dividends that it may pay to us. In general, dividends may be declared and paid only out of accumulated net earnings and may not be declared or paid unless surplus is at least equal to capital. Dividends may not reduce surplus without the prior consent of the Pennsylvania Department of Banking and Securities. FCB has not reduced its surplus through the payment of dividends. As of December 31, 2017, FCB could pay dividends to First Commonwealth of $110.3 million without reducing its capital levels below "well capitalized" levels and without the approval of the Pennsylvania Department of Banking and Securities.

As required by the Dodd-Frank Act, the FRB and the FDIC have issued rules which require bank holding companies and banks with average total consolidated assets greater than $10 billion to conduct an annual company-run stress test of capital, consolidated earnings and losses under one base and at least two stress scenarios provided by the federal bank regulators. Neither we nor our bank is currently subject to the stress testing requirements, but we expect that once we are subject to those requirements, the FRB, the FDIC and the Pennsylvania Department of Banking and Securities will consider our results as an important factor in evaluating our capital adequacy, and that of our bank, in evaluating any proposed acquisitions and in determining whether any proposed dividends or stock repurchases by us or by our bank may be an unsafe or unsound practice.

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To prepare for the application of these rules, we currently conduct annual stress tests utilizing the stress scenarios published by the federal banking regulations.

Community Reinvestment. Under the Community Reinvestment Act ("CRA") a bank has a continuing and affirmative obligation, consistent with its safe and sound operation, to help meet the credit needs of its entire community, including low and moderate income neighborhoods. The CRA does not establish specific lending requirements or programs for financial institutions nor does it limit an institution’s discretion to develop the types of products and services that it believes are best suited to its particular community, consistent with the CRA. The CRA requires the applicable regulatory agency to assess an institution’s record of meeting the credit needs of its community. The CRA requires public disclosure of an institution’s CRA rating and requires that the applicable regulatory agency provide a written evaluation of an institution’s CRA performance utilizing a four-tiered descriptive rating system. An institution’s CRA rating is considered in determining whether to grant charters, branches and other deposit facilities, relocations, mergers, consolidations and acquisitions. Performance less than satisfactory may be the basis for denying an application. For its most recent examination, FCB received a “satisfactory” rating.

Consumer Financial Protection. We are subject to a number of federal and state consumer protection laws that extensively govern our relationship with our customers. These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Home Mortgage Disclosure Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act, the Service Members Civil Relief Act and these laws’ respective state-law counterparts, as well as state usury laws and laws regarding unfair and deceptive acts and practices. These and other federal laws, among other things, require disclosures of the cost of credit and terms of deposit accounts, provide substantive consumer rights, prohibit discrimination in credit transactions, regulate the use of credit report information, provide financial privacy protections, prohibit unfair, deceptive and abusive practices, restrict our ability to raise interest rates and subject us to substantial regulatory oversight. Violations of applicable consumer protection laws can result in significant potential liability from litigation brought by customers, including actual damages, restitution and attorneys’ fees. Federal bank regulators, state attorneys general and state and local consumer protection agencies may also seek to enforce consumer protection requirements and obtain these and other remedies, including regulatory sanctions, customer rescission rights, action by the state and local attorneys general in each jurisdiction in which we operate and civil money penalties. Failure to comply with consumer protection requirements may also result in our failure to obtain any required bank regulatory approval for merger or acquisition transactions we may wish to pursue or our prohibition from engaging in such transactions even if approval is not required.

The Dodd-Frank Act created a new, independent federal agency, the Consumer Financial Protection Bureau ("CFPB"), which was granted broad rulemaking, supervisory and enforcement powers under various federal consumer financial protection laws. The CFPB is also authorized to engage in consumer financial education, track consumer complaints, request data and promote the availability of financial services to underserved consumers and communities. Although all institutions are subject to rules adopted by the CFPB and examination by the CFPB in conjunction with examinations by the institution’s primary federal regulator, the CFPB has primary examination and enforcement authority over institutions with assets of $10 billion or more. The FDIC has primary responsibility for examination of our bank and enforcement with respect to federal consumer protection laws so long as our bank has total consolidated assets of less than $10 billion, and state authorities are responsible for monitoring our compliance with all state consumer laws. The CFPB also has the authority to require reports from institutions with less than $10 billion in assets, such as our bank, to support the CFPB in implementing federal consumer protection laws, supporting examination activities, and assessing and detecting risks to consumers and financial markets.

The consumer protection provisions of the Dodd-Frank Act and the examination, supervision and enforcement of those laws and implementing regulations by the CFPB have created a more intense and complex environment for consumer finance regulation. The CFPB has significant authority to implement and enforce federal consumer finance laws, including the Truth in Lending Act, the Equal Credit Opportunity Act and new requirements for financial services products provided for in the Dodd-Frank Act, as well as the authority to identify and prohibit unfair, deceptive or abusive acts and practices. The review of products and practices to prevent such acts and practices is a continuing focus of the CFPB, and of banking regulators more broadly. The ultimate impact of this heightened scrutiny is uncertain but could result in changes to pricing, practices, products and procedures. It could also result in increased costs related to regulatory oversight, supervision and examination, additional remediation efforts and possible penalties. In addition, the Dodd-Frank Act provides the CFPB with broad supervisory, examination and enforcement authority over various consumer financial products and services, including the ability to require reimbursements and other payments to customers for alleged legal violations and to impose significant penalties, as well as injunctive relief that prohibits lenders from engaging in allegedly unlawful practices. The CFPB also has the authority to obtain cease and desist orders providing for affirmative relief or monetary penalties. The Dodd-Frank Act does not prevent states from adopting stricter consumer protection standards. State regulation of financial products and potential enforcement actions could also adversely affect our business, financial condition or results of operations.

Deposit Insurance. Deposits of FCB are insured up to applicable limits by the FDIC and are subject to deposit insurance assessments to maintain the Deposit Insurance Fund (“DIF”). Deposit insurance assessments are based upon average total assets

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minus average total equity. The insurance assessments are based upon a matrix that takes into account a bank’s capital level and supervisory rating. The FDIC may terminate deposit insurance upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC. As an institution with less than $10 billion in assets, FCB’s assessment rates are based on its risk classification (i.e., the level of risk it poses to the FDIC’s deposit insurance fund). For institutions with $10 billion or more in assets, assessment rates are calculated using a scorecard that combines the supervisory risk ratings of the institution with certain forward-looking financial measures. These assessment rates are subject to adjustments based upon the insured depository institution’s ratio of long-term unsecured debt to the assessment base, long-term unsecured debt issued by other insured depository institutions to the assessment base, and brokered deposits to the assessment base. However, the adjustments based on brokered deposits to the assessment base will not apply so long as the institution is well capitalized and has a composite CAMELS rating of 1 or 2. The CAMELS rating system is a bank rating system where bank supervisory authorities rate institutions according to six factors: capital adequacy, asset quality, management quality, earnings, liquidity, and sensitivity to market risk. The FDIC may make additional discretionary assessment rate adjustments.

In October 2010, the FDIC adopted a new DIF restoration plan to ensure that the fund reserve ratio reaches 1.35% by September 30, 2020, as required by the Dodd-Frank Act. In August 2016, the FDIC announced that the DIF reserve ratio had surpassed 1.15% as of June 30, 2016. As a result, beginning in the third quarter of 2016, the range of initial assessment ranges for all institutions were adjusted downward such that the initial base deposit insurance assessment rate ranges from 3 to 30 basis points on an annualized basis. After the effect of potential base-rate adjustments, the total base assessment rate could range from 1.5 to 40 basis points on an annualized basis. In March 2016, the FDIC adopted a final rule increasing the reserve ratio for the Deposit Insurance Fund to 1.35% of total insured deposits. The rule imposes a surcharge on the assessments of depository institutions with $10 billion or more in assets beginning the third quarter of 2016 and continuing through the earlier of the quarter that the reserve ratio first reaches or exceeds 1.35% and December 31, 2018. This surcharge does not currently impact FCB.

Repeal Of Federal Prohibitions On Payment Of Interest On Demand Deposits. The federal prohibition restricting depository institutions from paying interest on demand deposit accounts was repealed effective on July 21, 2011 as part of the Dodd-Frank Act.

Capital Requirements

First Commonwealth and FCB are each required to comply with applicable capital adequacy standards established by the FRB. The current risk-based capital standards applicable to First Commonwealth and FCB, parts of which are currently in the process of being phased-in, are based on the December 2010 final capital framework for strengthening international capital standards, known as Basel III, of the Basel Committee on Banking Supervision (the “Basel Committee”).

Prior to January 1, 2015, the risk-based capital standards applicable to First Commonwealth and FCB were based on the 1988 Capital Accord, known as Basel I, of the Basel Committee. In July 2013, the federal bank regulators approved final rules (the “Basel III Capital Rules”) implementing the Basel III framework as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules substantially revised the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including First Commonwealth and FCB, as compared to the Basel I risk-based capital rules. The Basel III Capital Rules became effective for First Commonwealth and FCB on January 1, 2015 (subject to a phase-in period for certain provisions).

The Basel III Capital Rules, among other things:

• introduce a new capital measure called Common Equity Tier 1 (“CET1”);

• define CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital;

• specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting specified requirements; and

• expand the scope of the deductions/adjustments as compared to existing regulations.

Under the Basel III Capital Rules, the initial minimum capital ratios that became effective on January 1, 2015 are as follows:

• 4.5% CET1 to risk-weighted assets

• 6.0% Tier 1 capital to risk-weighted assets

• 8.0% Total capital to risk-weighted assets

• 4.0% Tier 1 capital to average quarterly assets

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When fully phased in on January 1, 2019, the Basel III Capital Rules will require First Commonwealth and FCB to maintain a 2.5% “capital conservation buffer” over the required ratios of CET1 to risk-weighted assets, Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets, effectively resulting in minimum ratios of 7.0%, 8.5% and 10.5%, respectively.

Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall.

The Basel III Capital Rules provide for a number of deductions from and adjustments to CET1. These include, for example, the requirement that mortgage servicing rights, deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such categories in the aggregate exceed 15% of CET1. During 2015, First Commonwealth and FCB made a one-time permanent election, as permitted under Basel III Capital Rules, to exclude the effects of accumulated other comprehensive income items for the purposes of determining regulatory capital ratios.

Implementation of the deductions and other adjustments to CET1 began on January 1, 2015 and will be phased-in over a four-year period (beginning at 40% on January 1, 2015 and an additional 20% per year thereafter). The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will continue to be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019).

With respect to FCB, the Basel III Capital Rules also revise the “prompt corrective action” regulations pursuant to Section 38 of the Federal Deposit Insurance Act, as discussed below under “Prompt Corrective Action.” The Basel III Capital Rules prescribe a standardized approach for risk weightings that expand the risk-weighting categories from the four Basel I-derived categories (0%, 20%, 50% and 100%) to a much larger and more risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and resulting in higher risk weights for a variety of asset categories.

Management believes that, as of December 31, 2017, First Commonwealth and FCB would meet all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis as if such requirements were in effect as of that date.

Liquidity Requirements

Historically, regulation and monitoring of bank and bank holding company liquidity has been addressed as a supervisory matter, without required formulaic measures. The Basel III final framework requires banks and bank holding companies to measure their liquidity against specific liquidity tests that, although similar in some respects to liquidity measures historically applied by banks and regulators for management and supervisory purposes, going forward will be required by regulation. One such test, referred to as the liquidity coverage ratio (“LCR”), is designed to ensure that the banking entity maintains an adequate level of unencumbered high-quality liquid assets equal to the entity’s expected net cash outflow for a 30-day time horizon (or, if greater, 25% of its expected total cash outflow) under an acute liquidity stress scenario. The other, referred to as the net stable funding ratio (“NSFR”), is designed to promote more medium- and long-term funding of the assets and activities of banking entities over a one-year time horizon. These requirements will incent banking entities to increase their holdings of U.S. Treasury securities and other sovereign debt as a component of assets and increase the use of long-term debt as a funding source. In September 2014, the federal bank regulators approved final rules implementing the LCR for advanced approaches banking organizations (i.e., banking organizations with $250 billion or more in total consolidated assets or $10 billion or more in total on-balance sheet foreign exposure) and a modified version of the LCR for bank holding companies with at least $50 billion in total consolidated assets that are not advanced approach banking organizations, neither of which would apply to First Commonwealth or FCB. While not required, FCB nevertheless utilizes a modified version of the LCR as a helpful tool for monitoring its liquidity position. In the second quarter of 2016, the federal banking regulators issued a proposed rule that would implement the NSFR for certain U.S. banking organizations. The proposed rule would require certain U.S. banking organizations to ensure they have access to stable funding over a one-year time horizon and has an effective date of January 1, 2018. The proposed rule would not apply to U.S. banking organizations with less than $50 billion in total consolidated assets such as First Commonwealth or FCB.

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Prompt Corrective Action

The Federal Deposit Insurance Act, as amended (“FDIA”), requires, among other things, the federal banking agencies to take “prompt corrective action” in respect of depository institutions that do not meet minimum capital requirements. The FDIA includes the following five capital tiers: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.” A depository institution’s capital tier will depend upon how its capital levels compare with various relevant capital measures and certain other factors, as established by regulation. The relevant capital measures are the total capital ratio, the CET1 capital ratio (a new ratio requirement under the Basel III Capital Rules), the Tier 1 capital ratio and the leverage ratio.

A bank will be (i) “well capitalized” if the institution has a total risk-based capital ratio of 10.0% or greater, a CET1 capital ratio of 6.5% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, and a leverage ratio of 5.0% or greater, and is not subject to any order or written directive by any such regulatory authority to meet and maintain a specific capital level for any capital measure; (ii) “adequately capitalized” if the institution has a total risk-based capital ratio of 8.0% or greater, a CET1 capital ratio of 4.5% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater, and a leverage ratio of 4.0% or greater and is not “well capitalized”; (iii) “undercapitalized” if the institution has a total risk-based capital ratio that is less than 8.0%, a CET1 capital ratio less than 4.5%, a Tier 1 risk-based capital ratio of less than 6.0% or a leverage ratio of less than 4.0%; (iv) “significantly undercapitalized” if the institution has a total risk-based capital ratio of less than 6.0%, a CET1 capital ratio less than 3%, a Tier 1 risk-based capital ratio of less than 4.0% or a leverage ratio of less than 3.0%; and (v) “critically undercapitalized” if the institution’s tangible equity is equal to or less than 2.0% of average quarterly tangible assets. An institution may be downgraded to, or deemed to be in, a capital category that is lower than indicated by its capital ratios if it is determined to be in an unsafe or unsound condition or if it receives an unsatisfactory examination rating with respect to certain matters. A bank’s capital category is determined solely for the purpose of applying prompt corrective action regulations, and the capital category may not constitute an accurate representation of the bank’s overall financial condition or prospects for other purposes.

The FDIA generally prohibits a depository institution from making any capital distributions (including payment of a dividend) or paying any management fee to its parent holding company if the depository institution would thereafter be “undercapitalized.” “Undercapitalized” institutions are subject to growth limitations and are required to submit a capital restoration plan. The agencies may not accept such a plan without determining, among other things, that the plan is based on realistic assumptions and is likely to succeed in restoring the depository institution’s capital. In addition, for a capital restoration plan to be acceptable, the depository institution’s parent holding company must guarantee that the institution will comply with such capital restoration plan and must also provide appropriate assurances of performance. The aggregate liability of the parent holding company is limited to the lesser of (i) an amount equal to 5.0% of the depository institution’s total assets at the time it became undercapitalized and (ii) the amount which is necessary (or would have been necessary) to bring the institution into compliance with all capital standards applicable with respect to such institution as of the time it fails to comply with the plan. If a depository institution fails to submit an acceptable plan, it is treated as if it is “significantly undercapitalized.”

In addition, the FDIA prohibits an insured depository institution from accepting brokered deposits or offering interest rates on any deposits significantly higher than the prevailing rate in the bank's normal market area or nationally (depending upon where the deposits are solicited), unless it is well capitalized or is adequately capitalized and receives a waiver from the FDIC. A depository institution that is adequately capitalized and accepts brokered deposits under a waiver from the FDIC may not pay an interest rate on any deposit in excess of 75 basis points over certain prevailing market rates.

“Significantly undercapitalized” depository institutions may be subject to a number of requirements and restrictions, including orders to sell sufficient voting stock to become “adequately capitalized,” requirements to reduce total assets, and cessation of receipt of deposits from correspondent banks. “Critically undercapitalized” institutions are subject to the appointment of a receiver or conservator.

The appropriate federal banking agency may, under certain circumstances, reclassify a well-capitalized insured depository institution as adequately capitalized. The FDIA provides that an institution may be reclassified if the appropriate federal banking agency determines (after notice and opportunity for hearing) that the institution is in an unsafe or unsound condition or deems the institution to be engaging in an unsafe or unsound practice.

The appropriate agency is also permitted to require an adequately capitalized or undercapitalized institution to comply with the supervisory provisions as if the institution were in the next lower category (but not treat a significantly undercapitalized institution as critically undercapitalized) based on supervisory information other than the capital levels of the institution.

First Commonwealth believes that, as of December 31, 2017, FCB was a “well-capitalized” bank as defined by the FDIA. See Note 25 “Regulatory Restrictions and Capital Adequacy” of Notes to the Consolidated Financial Statements, contained in Item 8, for a table that provides a comparison of First Commonwealth’s and FCB’s risk-based capital ratios and the leverage ratio to minimum regulatory requirements.

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The Volcker Rule

The Dodd-Frank Act prohibits banks and their affiliates from engaging in proprietary trading and investing in and sponsoring hedge funds and private equity funds (so called "covered funds"). The statutory provision is commonly called the “Volcker Rule.” Banks with less than $10 billion in total consolidated assets, such as FCB, that do not engage in any covered activities, other than trading in certain government, agency, state or municipal obligations, do not have any significant compliance obligations under the rules implementing the Volcker Rule.

Depositor Preference

Under federal law, depositors (including the FDIC with respect to the subrogated claims of insured depositors) and certain claims for administrative expenses of the FDIC as receiver would be afforded a priority over other general unsecured claims against such an institution in the liquidation or other resolution of such an institution by any receiver.

Interchange Fees

Under the Durbin Amendment to the Dodd-Frank Act, the FRB adopted rules establishing standards for assessing whether the interchange fees that may be charged with respect to certain electronic debit transactions are “reasonable and proportional” to the costs incurred by issuers for processing such transactions. Interchange fees, or “swipe” fees, are charges that merchants pay to us and other card-issuing banks for processing electronic payment transactions. Under the final rules, the maximum permissible interchange fee is equal to no more than 21 cents plus 5 basis points of the transaction value for many types of debit interchange transactions. The FRB also adopted a rule to allow a debit card issuer to recover 1 cent per transaction for fraud prevention purposes if the issuer complies with certain fraud-related requirements required by the FRB. The FRB also has rules governing routing and exclusivity that require issuers to offer two unaffiliated networks for routing transactions on each debit or prepaid product.

The Dodd-Frank Act contained an exemption from the interchange fee cap for any debit card issuer that, together with its affiliates, has total assets of less than $10 billion as of the end of the previous calendar year. We currently qualify for this exemption. We earned approximately $18.8 million in card related interchange income during the 2017 fiscal year. If we did not qualify for this exemption, we estimate that our interchange income would have been approximately $11.2 million, representing a $7.6 million reduction due to the cap on interchange fees. We would become subject to the interchange fee cap beginning July 1 of the year following the time when our total assets reaches or exceeds $10 billion.

Heightened Requirements for Bank Holding Companies with $10 Billion or More in Assets

Various federal banking laws and regulations, including rules adopted by the FRB pursuant to the requirements of the Dodd-Frank Act, impose heightened requirements on certain large banks and bank holding companies. Most of these rules apply primarily to bank holding companies with at least $50 billion in total consolidated assets, but certain rules also apply to banks and bank holding companies with at least $10 billion in total consolidated assets. Following the time at which our or our bank’s total consolidated assets, as applicable, equal or exceed $10 billion, we or our bank, as applicable, will, among other requirements:

• be required to perform annual stress tests as described above under Dividends and Stress Testing;

• be required to establish a dedicated risk committee of our board of directors responsible for overseeing our enterprise-wide risk management policies, which must be commensurate with our capital structure, risk profile, complexity, activities, size and other appropriate risk-related factors, and including as a member at least one risk management expert;

• calculate our FDIC deposit assessment base using the performance score and a loss-severity score system described above under Deposit Insurance; and

• be examined for compliance with federal consumer protection laws primarily by the CFPB as described above under Consumer Financial Protection.

While neither we nor our bank currently have $10 billion or more in total consolidated assets, we have begun analyzing these rules to ensure we are prepared to comply with the rules when and if they become applicable.

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Financial Privacy

The federal banking regulators adopted rules that limit the ability of banks and other financial institutions to disclose non-public information about consumers to nonaffiliated third parties. These limitations require disclosure of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to a nonaffiliated third party. These regulations affect how consumer information is transmitted through diversified financial companies and conveyed to outside vendors.

Anti-Money Laundering and the USA Patriot Act

A major focus of governmental policy on financial institutions in recent years has been aimed at combating money laundering and terrorist financing. The USA PATRIOT Act of 2001 (the “USA Patriot Act”) substantially broadened the scope of United States anti-money laundering laws and regulations by imposing significant new compliance and due diligence obligations, creating new crimes and penalties and expanding the extra-territorial jurisdiction of the United States. Financial institutions are also prohibited from entering into specified financial transactions and account relationships and must use enhanced due diligence procedures in their dealings with certain types of high-risk customers and implement a written customer identification program. Financial institutions must take certain steps to assist government agencies in detecting and preventing money laundering and report certain types of suspicious transactions. Regulatory authorities routinely examine financial institutions for compliance with these obligations, and failure of a financial institution to maintain and implement adequate programs to combat money laundering and terrorist financing, or to comply with all of the relevant laws or regulations, could have serious legal and reputational consequences for the institution, including causing applicable bank regulatory authorities not to approve merger or acquisition transactions when regulatory approval is required or to prohibit such transactions even if approval is not required. Regulatory authorities have imposed cease and desist orders and civil money penalties against institutions found to be violating these obligations.

Office of Foreign Assets Control Regulation

The U.S. Treasury Department’s Office of Foreign Assets Control ("OFAC") administers and enforces economic and trade sanctions against targeted foreign countries and regimes, under authority of various laws, including designated foreign countries, nationals and others. OFAC publishes lists of specially designated targets and countries. First Commonwealth is responsible for, among other things, blocking accounts of, and transactions with, such targets and countries, prohibiting unlicensed trade and financial transactions with them and reporting blocked transactions after their occurrence. Failure to comply with these sanctions could have serious legal and reputational consequences, including causing applicable bank regulatory authorities not to approve merger or acquisition transactions when regulatory approval is required or to prohibit such transactions even if approval is not required.

Cybersecurity

In March 2015, federal regulators issued two related statements regarding cybersecurity. One statement indicates that financial institutions should design multiple layers of security controls to establish lines of defense and to ensure that their risk management processes also address the risk posed by compromised customer credentials, including security measures to reliably authenticate customers accessing internet-based services of the financial institution. The other statement indicates that a financial institution’s management is expected to maintain sufficient business continuity planning processes to ensure the rapid recovery, resumption and maintenance of the institution’s operations after a cyber-attack involving destructive malware. A financial institution is also expected to develop appropriate processes to enable recovery of data and business operations and address rebuilding network capabilities and restoring data if the institution or its critical service providers fall victim to this type of cyber-attack. If we fail to observe the regulatory guidance, we could be subject to various regulatory sanctions, including financial penalties.

In the ordinary course of business, we rely on electronic communications and information systems to conduct our operations and to store sensitive data. We employ an in-depth, layered, defensive approach that leverages people, processes and technology to manage and maintain cybersecurity controls. We employ a variety of preventative and detective tools to monitor, block, and provide alerts regarding suspicious activity, as well as to report on any suspected advanced persistent threats. Notwithstanding the strength of our defensive measures, the threat from cyber attacks is severe, attacks are sophisticated and increasing in volume, and attackers respond rapidly to changes in defensive measures. While to date we have not experienced a significant compromise, significant data loss or any material financial losses related to cybersecurity attacks, our systems and those of our customers and third-party service providers are under constant threat and it is possible that we could experience a significant event in the future. Risks and exposures related to cybersecurity attacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of internet banking, mobile banking and other technology-based products and services by us and our customers. See Item 1A. Risk Factors for a further discussion of risks related to cybersecurity.

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Future Legislation and Regulation

Congress may enact legislation from time to time that affects the regulation of the financial services industry, and state legislatures may enact legislation from time to time affecting the regulation of financial institutions chartered by or operating in those states. Federal and state regulatory agencies also periodically propose and adopt changes to their regulations or change the manner in which existing regulations are applied. The substance or impact of pending or future legislation or regulation, or the application thereof, cannot be predicted, although enactment of the proposed legislation could impact the regulatory structure under which we operate and may significantly increase our costs, impede the efficiency of our internal business processes, require us to increase our regulatory capital and modify our business strategy, and limit our ability to pursue business opportunities in an efficient manner. Our business, financial condition, results of operations or prospects may be adversely affected, perhaps materially, as a result.

Availability of Financial Information

We file annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy any document we file at the Securities and Exchange Commission’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Our SEC filings are also available to the public on the SEC website at www.sec.gov and on our website at www.fcbanking.com.

We also make available on our website, www.fcbanking.com, and in print to any shareholder who requests them, our Corporate Governance Guidelines, the charters for our Audit, Risk, Compensation and Human Resources, and Governance Committees, and the Code of Conduct and Ethics that applies to all of our directors, officers and employees.

Our Chief Executive Officer has certified to the New York Stock Exchange (“NYSE”) that, as of the date of the certification, he was not aware of any violation by First Commonwealth of NYSE’s corporate governance listing standards. In addition, our Chief Executive Officer and Chief Financial Officer have made certain certifications concerning the information contained in this report pursuant to Section 302 of the Sarbanes-Oxley Act. The Section 302 certifications appear as Exhibits 31.1 and 31.2 to this annual report on Form 10-K.

ITEM 1A.    Risk Factors

As a financial services company, we are subject to a number of risks, many of which are outside of our control. These risks include, but are not limited to:

Changes in interest rates could negatively impact our financial condition and results of operations.

Our results of operations depend substantially on net interest income, which is the difference between interest earned on interest-earning assets (such as investments and loans) and interest paid on interest-bearing liabilities (such as deposits and borrowings). Interest rates are highly sensitive to many factors, including governmental monetary policies and domestic and international economic and political conditions. Conditions such as inflation, recession, unemployment, money supply, and other factors beyond our control may also affect interest rates. If our interest-earning assets mature or reprice more quickly than interest-bearing liabilities in a declining interest rate environment, net interest income could be adversely impacted. Likewise, if interest-bearing liabilities mature or reprice more quickly than interest-earnings assets in a rising interest rate environment, net interest income could be adversely impacted.

Changes in interest rates also can affect the value of loans and other assets. An increase in interest rates that adversely affects the ability of borrowers to pay the principal or interest on loans may lead to an increase in nonperforming assets and a reduction of income recognized, which could have a material adverse effect on our results of operations and cash flows.

We are subject to extensive government regulation and supervision.

Banking regulations are primarily intended to protect depositors’ funds, federal deposit insurance funds and the banking system as a whole, not security holders. These regulations affect our lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes. The Dodd-Frank Act, enacted in July 2010, instituted major changes to the banking and financial institutions regulatory regimes in light of the recent performance of and government intervention in the financial services sector. Other changes to statutes, regulations or regulatory policies, including changes in interpretation or implementation of statutes, regulations or policies, could affect us in substantial and unpredictable ways. Such changes could subject us to additional costs, limit the types of financial services and products we may offer and/or increase the ability of non-banks to offer competing financial services and products, among other things. Failure to comply with laws, regulations, policies or supervisory guidance could result in enforcement and other legal actions by Federal or state authorities, including criminal and civil penalties, the loss of FDIC insurance, the revocation of a banking charter, other sanctions by regulatory agencies, civil

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money penalties and/or reputational damage. In this regard, government authorities, including the bank regulatory agencies, are pursuing aggressive enforcement actions with respect compliance and other legal matters involving financial activities, which heightens the risks associated with actual and perceived compliance failures. See “Supervision and Regulation” included in Item 1. Business for a more detailed description of the Dodd-Frank Act and other regulatory requirements applicable to First Commonwealth.

Declines in real estate values could adversely affect our earnings and financial condition.

As of December 31, 2017, approximately 68% of our loans were secured by real estate. These loans consist of residential real estate loans (approximately 26% of total loans), commercial real estate loans (approximately 37% of total loans) and real estate construction loans (approximately 5% of total loans). During the economic recession in 2008, declines in real estate values and weak demand for new construction, particularly outside of our core Pennsylvania market, caused deterioration in our loan portfolio and adversely impacted our financial condition and results of operations. Additional declines in real estate values, both within and outside of Pennsylvania, could adversely affect the value of the collateral for these loans, the ability of borrowers to make timely repayment of these loans and our ability to recoup the value of the collateral upon foreclosure, further impacting our earnings and financial condition.

Our earnings are significantly affected by general business and economic conditions.

Our operations and profitability are impacted by general business and economic conditions in the United States and abroad. These conditions include short-term and long-term interest rates, inflation, money supply, political issues, legislative and regulatory changes, fluctuations in both debt and equity capital markets, broad trends in industry and finance and the strength of the United States economy, all of which are beyond our control. A deterioration in economic conditions could result in an increase in loan delinquencies and nonperforming assets, decreases in loan collateral values and a decrease in demand for our products and services, among other things, any of which could have a material adverse impact on our financial condition and results of operations.

Our allowance for credit losses may be insufficient.

All borrowers carry the potential to default and our remedies to recover may not fully satisfy money previously loaned. We maintain an allowance for credit losses, which is a reserve established through a provision for credit losses charged to expense, which represents management’s best estimate of probable credit losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is adequate to reserve for estimated loan losses and risks inherent in the loan portfolio. The level of the allowance for credit losses reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic conditions and unidentified losses in the current loan portfolio. The determination of the appropriate level of the allowance for credit losses inherently involves a high degree of subjectivity and requires us to make significant estimates of current credit risks using existing qualitative and quantitative information, all of which may undergo material changes. Changes in economic conditions affecting borrowers, new information regarding existing loans, identification of additional problem loans and other factors, both within and outside of our control, may require an increase in the allowance for credit losses. In addition, bank regulatory agencies periodically review our allowance for credit losses and may require an increase in the provision for credit losses or the recognition of additional loan charge-offs, based on judgments different than those of management. An increase in the allowance for credit losses results in a decrease in net income or losses, and possibly risk-based capital, and may have a material adverse effect on our financial condition and results of operations.

Acts of cyber-crime may compromise client and company information, disrupt access to our systems or result in loss of client or company assets.

Our business is dependent upon the availability of technology, the Internet and telecommunication systems to enable financial transactions by clients, record and monitor transactions and transmit and receive data to and from clients and third parties. Information security risks have increased significantly due to the use of online, telephone and mobile banking channels by clients and the increased sophistication and activities of organized crime, hackers, terrorists and other external parties. Our technologies, systems, networks and our clients’ devices have been subject to, and are likely to continue to be the target of, cyber-attacks, computer viruses, malicious code, phishing attacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of our or our clients’ confidential, proprietary and other information, the theft of client assets through fraudulent transactions or disruption of our or our clients’ or other third parties’ business operations. Any of the foregoing could have a material adverse effect on First Commonwealth's business, financial condition and results of operations.

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We must evaluate whether any portion of our recorded goodwill is impaired. Impairment testing may result in a material, non-cash write-down of our goodwill assets and could have a material adverse impact on our results of operations.

At December 31, 2017, goodwill represented approximately 3% of our total assets. We have recorded goodwill because we paid more for some of our businesses than the fair market value of the tangible and separately measurable intangible net assets of those businesses. We test our goodwill and other intangible assets with indefinite lives for impairment at least annually (or whenever events occur which may indicate possible impairment). Goodwill impairment is determined by comparing the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. If the fair value of the reporting unit is less than the carrying amount, goodwill is considered impaired. Determining the fair value of our company requires a high degree of subjective management assumptions. Any changes in key assumptions about our business and its prospects, changes in market conditions or other externalities, for impairment testing purposes could result in a non-cash impairment charge and such a charge could have a material adverse effect on our consolidated results of operations. The challenges of the current economic environment may adversely affect our earnings, the fair value of our assets and liabilities and our stock price, all of which may increase the risk of goodwill impairment.

First Commonwealth relies on dividends from its subsidiaries for most of its revenues.

First Commonwealth is a separate and distinct legal entity from its subsidiaries. It receives substantially all of its revenues from dividends from its subsidiaries. These dividends are the principal source of funds to pay dividends on First Commonwealth’s common stock and interest and principal on First Commonwealth’s debt. Various federal and/or state laws and regulations limit the amount of dividends that FCB and certain non-bank subsidiaries may pay to First Commonwealth. In the event FCB is unable to pay dividends to First Commonwealth, First Commonwealth may not be able to service debt, pay obligations or pay dividends on its common stock. The inability to receive dividends from FCB could have a material adverse effect on First Commonwealth’s business, financial condition and results of operations.

Competition from other financial institutions in originating loans, attracting deposits and providing various financial services may adversely affect our profitability.

FCB faces substantial competition in originating loans and attracting deposits. This competition comes principally from other banks, savings institutions, mortgage banking companies and credit unions, as well as institutions offering uninsured investment alternatives, including money market funds. Many of our competitors enjoy advantages, including greater financial resources and higher lending limits, better brand recognition, a wider geographic presence, more accessible branch office locations, the ability to offer a wider array of services or more favorable pricing alternatives, as well as lower origination and operating costs. These competitors may offer more favorable pricing through lower interest rates on loans or higher interest rates on deposits, which could force us to match competitive rates and thereby reduce our net interest income.

Negative publicity could damage our reputation.

Reputation risk, or the risk to our earnings and capital from negative public opinion, is inherent in our business. Negative public opinion could adversely affect our ability to keep and attract customers and expose us to adverse legal and regulatory consequences. Negative public opinion could result from our actual or alleged conduct in any number of activities, including lending practices, corporate governance, regulatory compliance, mergers and acquisitions, and disclosure, sharing or inadequate protection of customer information, and from actions taken by government regulators and community organizations in response to that conduct. Because we conduct all of our business under the “First Commonwealth” brand, negative public opinion about one business could affect our other businesses.

An interruption to our information systems could adversely impact our operations.

We rely upon our information systems for operating and monitoring all major aspects of our business, including deposit and loan operations, as well as internal management functions. These systems and our operations could be damaged or interrupted by natural disasters, power loss, network failure, improper operation by our employees, security breaches, computer viruses, intentional attacks by third parties or other unexpected events. Any disruption in the operation of our information systems could adversely impact our operations, which may affect our financial condition, results of operations and cash flows.

Our controls and procedures may fail or be circumvented.

Our internal controls, disclosure controls and procedures, and corporate governance policies and procedures are based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives of the system are met. Any failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures could have a material adverse effect on First Commonwealth’s business, financial condition and results of operations.

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We continually encounter technological change.

The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services. The effective use of technology increases efficiency and enables financial institutions to better serve customers and to reduce costs. Our future success depends, in part, upon our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in our operations. Many of our competitors have substantially greater resources to invest in technological improvements. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to its customers. Failure to successfully keep pace with technological change affecting the financial services industry could have a material adverse effect on First Commonwealth’s business, financial condition and results of operations.

Our operations rely on external vendors.

We rely on certain vendors to provide products and services necessary to maintain the day-to-day operations of First Commonwealth and FCB. In particular, we contracted with an external vendor for our core processing system used to maintain customer and account records, reflect account transactions and activity, and support our customer relationship management systems for substantially all of our deposit and loan customers. Accordingly, our operations are exposed to risk that these vendors will not perform in accordance with the contracted arrangements under service level agreements. The failure of an external vendor to perform in accordance with the contracted arrangements under service level agreements, because of changes in the vendor’s organizational structure, financial condition, support for existing products and services or strategic focus or for any other reason, could be disruptive to First Commonwealth’s operations and financial reporting, which could have a material adverse effect on First Commonwealth’s business and, in turn, First Commonwealth’s financial condition and results of operations.

We are subject to environmental liability risk associated with lending activities.

A significant portion of FCB's loan portfolio is secured by real property. During the ordinary course of business, FCB may foreclose on and take title to properties securing certain loans. In doing so, there is a risk that hazardous or toxic substances could be found on these properties. If hazardous or toxic substances are found, we may be liable for remediation costs, as well as for personal injury and property damage. Environmental laws may require us to incur substantial expenses and may materially reduce the affected property’s value or limit our ability to use or sell the affected property. In addition, future laws or more stringent interpretations or enforcement policies with respect to existing laws may increase our exposure to environmental liability. Environmental reviews of real property before initiating foreclosure actions may not be sufficient to detect all potential environmental hazards. The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on First Commonwealth’s business, financial condition and results of operations.

Severe weather, natural disasters, acts of war or terrorism and other external events could significantly impact our business.

Severe weather, natural disasters, acts of war or terrorism and other adverse external events could have a significant impact on our ability to conduct business. In addition, such events could affect the stability of FCB’s deposit base, impair the ability of borrowers to repay outstanding loans, impair the value of collateral securing loans, cause significant property damage, result in loss of revenue and/or cause us to incur additional expenses. The occurrence of any such event in the future could have a material adverse effect on our business, which, in turn, could have a material adverse effect on First Commonwealth’s financial condition and results of operations.

Financial services companies depend on the accuracy and completeness of information about customers and counterparties.

In deciding whether to extend credit or enter into other transactions, we may rely on information furnished by or on behalf of customers and counterparties, including financial statements, credit reports and other financial information. We may also rely on representations of those customers, counterparties or other third parties, such as independent auditors, as to the accuracy and completeness of that information. Reliance on inaccurate or misleading financial statements, credit reports or other financial information could have a material adverse impact on First Commonwealth’s business, financial condition and results of operations.

We may be adversely affected by the soundness of other financial institutions.

Financial services institutions that deal with each other are interconnected as a result of trading, investment, liquidity management, clearing, counterparty and other relationships. Within the financial services industry, loss of public confidence, including through default by any one institution, could lead to liquidity challenges or to defaults by other institutions. Concerns about, or a default by, one institution could lead to significant liquidity problems and losses or defaults by other institutions, as

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the commercial and financial soundness of many financial institutions is closely related as a result of these credit, trading, clearing and other relationships. Even the perceived lack of creditworthiness of, or questions about, a counterparty may lead to market-wide liquidity problems and losses or defaults by various institutions. This systemic risk may adversely affect financial intermediaries, such as clearing agencies, banks and exchanges with which we interact on a daily basis or key funding providers such as the Federal Home Loan Banks, any of which could have a material adverse effect on our access to liquidity or otherwise have a material adverse effect on our business, financial condition or results of operations.

First Commonwealth’s stock price can be volatile.

Stock price volatility may make it more difficult for you to resell your common stock when you want and at prices you find attractive. First Commonwealth’s stock price can fluctuate significantly in response to a variety of factors including, among other things:

• Actual or anticipated variations in quarterly results of operations.

• Recommendations by securities analysts.

• Operating and stock price performance of other companies that investors deem comparable to First Commonwealth.

• News reports relating to trends, concerns and other issues in the financial services industry.

• Perceptions in the marketplace regarding First Commonwealth and/or its competitors.

• New technology used, or services offered, by competitors.

• Significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving First Commonwealth or its competitors.

• Failure to integrate acquisitions or realize anticipated benefits from acquisitions.

• Changes in government regulations.

• Geopolitical conditions such as acts or threats of terrorism or military conflicts.

General market fluctuations, including real or anticipated changes in the strength of the economy in Pennsylvania and Ohio; industry factors and general economic and political conditions and events, such as economic slowdowns or recessions; interest rate changes or credit loss trends could also cause First Commonwealth’s stock price to decrease regardless of operating results.

The trading volume in First Commonwealth’s common stock is less than that of other larger financial services companies.

Although First Commonwealth’s common stock is listed for trading on the NYSE, the trading volume in its common stock is less than that of other, larger financial services companies. A public trading market having the desired characteristics of depth, liquidity and orderliness depends on the presence in the marketplace of willing buyers and sellers of First Commonwealth’s common stock at any given time. This presence depends on the individual decisions of investors and general economic and market conditions over which we have no control. Given the lower trading volume of First Commonwealth’s common stock, significant sales of First Commonwealth’s common stock, or the expectation of these sales, could cause First Commonwealth’s stock price to fall.

First Commonwealth may not continue to pay dividends on its common stock in the future.

Holders of First Commonwealth common stock are only entitled to receive such dividends as its board of directors may declare out of funds legally available for such payments. Although First Commonwealth has historically declared cash dividends on its common stock, it is not required to do so and may reduce or eliminate its common stock dividend in the future. This could adversely affect the market price of First Commonwealth’s common stock. Also, First Commonwealth is a bank holding company, and its ability to declare and pay dividends is dependent on certain federal regulatory considerations, including the guidelines of the FRB regarding capital adequacy and dividends.

As more fully discussed in Part II, Item 8, Financial Statements and Supplementary Data-Note 25, Regulatory Restrictions and Capital Adequacy, which is located elsewhere in this report, the ability of First Commonwealth to declare or pay dividends on its common stock may also be subject to certain restrictions in the event that First Commonwealth elects to defer the payment of interest on its junior subordinated debt securities.

An investment in First Commonwealth’s common stock is not an insured deposit.

First Commonwealth’s common stock is not a bank deposit and, therefore, is not insured against loss by the FDIC, any other deposit insurance fund or by any other public or private entity. Investment in First Commonwealth’s common stock is inherently risky for the reasons described in this Risk Factors section and elsewhere in this report and is subject to the same

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market forces that affect the price of common stock in any company. As a result, if you acquire First Commonwealth’s common stock, you could lose some or all of your investment.

Provisions of our articles of incorporation, bylaws and Pennsylvania law, as well as state and federal banking regulations, could delay or prevent a takeover of us by a third party.

Provisions in our articles of incorporation and bylaws, the corporate law of the Commonwealth of Pennsylvania, and state and federal regulations could delay, defer or prevent a third party from acquiring us, despite the possible benefit to our shareholders, or otherwise adversely affect the price of our common stock. These provisions include, among other things, advance notice requirements for proposing matters that shareholders may act on at shareholder meetings. In addition, under Pennsylvania law, we are prohibited from engaging in a business combination with any interested shareholder for a period of five years from the date the person became an interested shareholder unless certain conditions are met. These provisions may discourage potential takeover attempts, discourage bids for our common stock at a premium over market price or adversely affect the market price of, and the voting and other rights of the holders of, our common stock.

ITEM 1B.    Unresolved Staff Comments

None.

ITEM 2.    Properties

Our principal office is located in the old Indiana County courthouse complex, consisting of the former courthouse building and the former sheriff’s residence and jail building for Indiana County. This certified Pennsylvania and national historic landmark was built in 1870 and restored by us in the early 1970s. We lease the complex from Indiana County pursuant to a lease agreement that was originally signed in 1973 and has a current term that expires in 2048.

The majority of our administrative personnel are also located in two owned buildings in Indiana, Pennsylvania, each of which is in close proximity to our principal office.

First Commonwealth Bank has 133 banking offices, of which 53 are leased and 80 are owned. We also lease three mortgage loan production offices and three corporate loan production offices. During 2016, we acquired 13 banking offices from FirstMerit Bank, National Association, in Canton-Massillon and Ashtabula, Ohio, of which eight are owned and five are leased. During 2017, we acquired 13 banking offices with the DCB Financial acquisition in Delaware County, Ohio, of which eight are leased and five are owned, as well as a leased administrative office center in Columbus, Ohio. Additionally, in 2017, we purchased a previously leased property which included a branch and office space in Wexford, PA.

While these facilities are adequate to meet our current needs, available space is limited and additional facilities may be required to support future expansion. However, we have no current plans to lease, purchase or construct additional administrative facilities.

ITEM 3.    Legal Proceedings

The information required by this Item is set forth in Part II, Item 8, Note 23, “Contingent Liabilities,” which is incorporated herein by reference in response to this item.

ITEM 4.    Mine Safety Disclosures

Not applicable.

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Executive Officers of First Commonwealth Financial Corporation

The name, age and principal occupation for each of the executive officers of First Commonwealth Financial Corporation as of December 31, 2017 is set forth below:

Jane Grebenc, age 59, has served as Executive Vice President and Chief Revenue Officer of First Commonwealth Financial Corporation and President of First Commonwealth Bank since May 31, 2013. Ms. Grebenc's financial services career includes executive leadership roles at a variety of institutions, including Park View Federal Savings Bank, Key Bank, and National City Bank. She was formerly the Executive Vice President in charge of the retail, marketing, IT and operations and the mortgage segments at Park View Federal Savings Bank from 2009 until 2012, the Executive Vice President in charge of the Wealth Segment at Key Bank from 2007 until 2009 and the Executive Vice President / Branch Network at National City Bank prior to 2007.

Brian Karrip, age 57, has served as Executive Vice President and Chief Credit Officer of First Commonwealth Bank since September 2016.  Prior to joining First Commonwealth, Mr. Karrip served as Executive Vice President, Specialized Lending for FirstMerit Bank.  Prior to joining FirstMerit Bank, Mr. Karrip served as Managing Director and Group Head of Loan Syndications and Sales at KeyBanc Capital Markets.  Mr. Karrip’s financial services career also includes 16 years with National City Bank where he held a variety of roles in the commercial lending division and served as Regional President of Michigan and Illinois.

Leonard V. Lombardi, age 58, has served as Executive Vice President and Chief Audit Executive of First Commonwealth Financial Corporation since January 1, 2009. He was formerly Senior Vice President / Loan Review and Audit Manager.

Norman J. Montgomery, age 50, has served as the Executive Vice President of Business Integration of First Commonwealth Bank since May 2011. He oversees First Commonwealth’s product development and assumed oversight of First Commonwealth’s technology and operations functions in July 2012. He served as Senior Vice President/Business Integration of First Commonwealth Bank from September 2007 until May 2011 and previously held positions in the technology, operations, audit and marketing areas.

T. Michael Price, age 55, has served as President and Chief Executive Officer of First Commonwealth Financial Corporation and Chief Executive Officer of First Commonwealth Bank since March 2012. Mr. Price served as President of First Commonwealth Bank from November 2007 to May 2013. From January 1, 2012 to March 7, 2012, he served as Interim President and Chief Executive Officer of First Commonwealth Financial Corporation. He was formerly Chief Executive Officer of the Cincinnati and Northern Kentucky Region of National City Bank from July 2004 to November 2007 and Executive Vice President and Head of Small Business Banking of National City Bank prior to July 2004.

James R. Reske, age 54, joined First Commonwealth Financial Corporation as Executive Vice President, Chief Financial Officer and Treasurer on April 28, 2014. Prior to joining First Commonwealth, Mr. Reske served as Executive Vice President, Chief Financial Officer, and Treasurer at United Community Financial Corporation in Youngstown, Ohio from 2008 until April 2014. Mr. Reske's financial services career includes investment banking roles within the Financial Institutions Groups at Keybanc Capital Markets, Inc. in Cleveland, Ohio and at Morgan Stanley & Company in New York. Mr. Reske also provided expertise and counsel to financial institutions and other organizations on mergers and acquisitions and capital markets activities as an attorney at Wachtell, Lipton, Rosen & Katz, as well as at Sullivan & Cromwell. Earlier in his career, Mr. Reske worked at the Board of Governors of the Federal Reserve System in Washington, DC and at the Federal Reserve Bank of Boston.

Carrie L. Riggle, age 48, has served as Executive Vice President / Human Resources since March 1, 2013. Ms. Riggle has been with First Commonwealth for more than 20 years. Over the course of her tenure, Ms. Riggle has been responsible for the daily operations of the Human Resources function and was actively involved in the establishment and development of a centralized corporate human resources function within the Company.

Matthew C. Tomb, age 41, has served as Executive Vice President, Chief Risk Officer and General Counsel of First Commonwealth Financial Corporation since November 2010. He previously served as Senior Vice President / Legal and Compliance since September 2007. Before joining First Commonwealth, Mr. Tomb practiced law with Sherman & Howard L.L.C. in Denver, Colorado.

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PART II

ITEM 5.    Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchase of Equity Securities

First Commonwealth is listed on the NYSE under the symbol “FCF.” As of December 31, 2017, there were approximately 6,297 holders of record of First Commonwealth’s common stock. The table below sets forth the high and low sales prices per share and cash dividends declared per share for common stock of First Commonwealth for each quarter during the last two fiscal years.

Period	High Sale		Low Sale		Cash Dividends Per Share
2017
First Quarter	$	14.59	$	12.81	$	0.08
Second Quarter	13.46		12.28		0.08
Third Quarter	14.13		12.14		0.08
Fourth Quarter	15.32		13.78		0.08

Period	High Sale		Low Sale		Cash Dividends Per Share
2016
First Quarter	$	9.28	$	7.89	$	0.07
Second Quarter	9.47		8.35		0.07
Third Quarter	10.33		8.87		0.07
Fourth Quarter	14.25		9.71		0.07

Federal and state regulations contain restrictions on the ability of First Commonwealth to pay dividends. For information regarding restrictions on dividends, see Part I, Item 1 “Business—Supervision and Regulation—Restrictions on Dividends” and Part II, Item 8, “Financial Statements and Supplementary Data—Note 25, Regulatory Restrictions and Capital Adequacy.” In addition, under the terms of the capital securities issued by First Commonwealth Capital Trust II and III, First Commonwealth could not pay dividends on its common stock if First Commonwealth deferred payments on the junior subordinated debt securities that provide the cash flow for the payments on the capital securities.

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The following five-year performance graph compares the cumulative total shareholder return (assuming reinvestment of dividends) on First Commonwealth’s common stock to the SNL U.S. Bank Index and the Russell 2000 Index. The stock performance graph assumes $100 was invested on December 31, 2012, and the cumulative return is measured as of each subsequent fiscal year end.

	Period Ending
Index	12/31/2012	12/31/2013	12/31/2014	12/31/2015	12/31/2016	12/31/2017
First Commonwealth Financial Corporation	100.00	133.33	143.98	146.05	235.39	243.40
Russell 2000	100.00	138.82	145.62	139.19	168.85	193.58
SNL U.S. Bank Index	100.00	137.30	153.48	156.10	197.23	232.91

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ITEM 6.    Selected Financial Data

The following selected financial data is not covered by the auditor’s report and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations, which follows, and with the Consolidated Financial Statements and related notes.

	Periods Ended December 31,
	2017			2016			2015			2014			2013
	(dollars in thousands, except share data)
Interest income	$	250,550		$	217,614		$	204,071		$	202,181		$	206,358
Interest expense	21,770			18,579			15,595			18,501			21,707
Net interest income	228,780			199,035			188,476			183,680			184,651
Provision for credit losses	5,087			18,480			14,948			11,196			19,227
Net interest income after provision for credit losses	223,693			180,555			173,528			172,484			165,424
Net securities gains (losses)	5,040			617			(153		)	550			(1,158		)
Other income	75,291			63,982			61,478			60,309			61,321
Other expenses	200,298			159,925			163,874			171,210			168,824
Income before income taxes	103,726			85,229			70,979			62,133			56,763
Income tax provision	48,561			25,639			20,836			17,680			15,281
Net Income	$	55,165		$	59,590		$	50,143		$	44,453		$	41,482
Per Share Data—Basic
Net Income	$	0.58		$	0.67		$	0.56		$	0.48		$	0.43
Dividends declared	$	0.32		$	0.28		$	0.28		$	0.28		$	0.23
Average shares outstanding	95,220,056			88,851,573			89,356,767			93,114,654			97,028,157
Per Share Data—Diluted
Net Income	$	0.58		$	0.67		$	0.56		$	0.48		$	0.43
Average shares outstanding	95,331,037			88,851,573			89,356,767			93,114,654			97,029,832
At End of Period
Total assets	$	7,308,539		$	6,684,018		$	6,566,890		$	6,360,285		$	6,214,861
Investment securities	1,183,291			1,187,623			1,333,836			1,354,364			1,353,809
Loans and leases, net of unearned income	5,407,376			4,879,347			4,683,750			4,457,308			4,283,833
Allowance for credit losses	48,298			50,185			50,812			52,051			54,225
Deposits	5,580,705			4,947,408			4,195,894			4,315,511			4,603,863
Short-term borrowings	707,466			867,943			1,510,825			1,105,876			626,615
Subordinated debentures	72,167			72,167			72,167			72,167			72,167
Other long-term debt	8,161			8,749			9,314			89,459			144,385
Shareholders’ equity	888,127			749,929			719,546			716,145			711,697
Key Ratios
Return on average assets	0.77		%	0.89		%	0.78		%	0.71		%	0.68		%
Return on average equity	6.45			8.02			6.98			6.18			5.70
Net loans to deposits ratio	96.03			97.61			110.42			102.08			91.87
Dividends per share as a percent of net income per share	55.17			41.79			50.00			58.33			53.49
Average equity to average assets ratio	11.86			11.15			11.23			11.45			11.87

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ITEM 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis represents an overview of the financial condition and the results of operations of First Commonwealth and its subsidiaries, FCB, First Commonwealth Insurance Agency, Inc. (“FCIA”), FRAMAL and First Commonwealth Financial Advisors, Inc. (“FCFA”), as of and for the years ended December 31, 2017, 2016 and 2015. The purpose of this discussion is to focus on information concerning our financial condition and results of operations that is not readily apparent from the Consolidated Financial Statements. In order to obtain a more thorough understanding of this discussion, you should refer to the Consolidated Financial Statements, the notes thereto and other financial information presented in this Annual Report.

Company Overview

First Commonwealth provides a diversified array of consumer and commercial banking services through our bank subsidiary, FCB. We also provide trust and wealth management services through FCB and insurance products through FCIA. At December 31, 2017, FCB operated 133 community banking offices throughout western Pennsylvania and central and northern Ohio, as well as loan production offices in Pittsburgh, Pennsylvania, and Cleveland, Columbus, Dublin and Hudson, Ohio.

Our consumer services include Internet, mobile and telephone banking, an automated teller machine network, personal checking accounts, interest-earning checking accounts, savings accounts, health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection and IRA accounts. Commercial banking services include commercial lending, small and high-volume business checking accounts, on-line account management services, ACH origination, payroll direct deposit, commercial cash management services and repurchase agreements. We also provide a variety of trust and asset management services and a full complement of auto, home and business insurance as well as term life insurance. We offer annuities, mutual funds and stock and bond brokerage services through an arrangement with a broker-dealer and insurance brokers. Most of our commercial customers are small and mid-sized businesses in central and western Pennsylvania.

As a financial institution with a focus on traditional banking activities, we earn the majority of our revenue through net interest income, which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings. Growth in net interest income is dependent upon balance sheet growth and maintaining or increasing our net interest margin, which is net interest income (on a fully taxable-equivalent basis) as a percentage of our average interest-earning assets. We also generate revenue through fees earned on various services and products that we offer to our customers and, less frequently, through sales of assets, such as loans, investments or properties. These revenue sources are offset by provisions for credit losses on loans, operating expenses, income taxes and, less frequently, loss on sale or other-than-temporary impairments on investment securities.

General economic conditions also affect our business by impacting our customers’ need for financing, thus affecting loan growth, as well as impacting the credit strength of existing and potential borrowers.

Critical Accounting Policies and Significant Accounting Estimates

First Commonwealth’s accounting and reporting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) and predominant practice in the banking industry. The preparation of financial statements in accordance with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the financial statements and accompanying notes. Over time, these estimates, assumptions and judgments may prove to be inaccurate or vary from actual results and may significantly affect our reported results and financial position for the period presented or in future periods. We currently view the determination of the allowance for credit losses, fair value of financial instruments and income taxes to be critical because they are highly dependent on subjective or complex judgments, assumptions and estimates made by management.

Allowance for Credit Losses

We account for the credit risk associated with our lending activities through the allowance and provision for credit losses. The allowance represents management’s best estimate of probable losses that have been incurred in our existing loan portfolio as of the balance sheet date. The provision is a periodic charge to earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. Management determines and reviews with the Board of Directors the adequacy of the allowance on a quarterly basis in accordance with the methodology described below.

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• Individual loans are selected for review in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 310, “Receivables.” These are generally large balance commercial loans and commercial mortgages that are rated less than “satisfactory” based on our internal credit-rating process.

• We assess whether the loans identified for review in step one are “impaired,” which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement, which generally represents loans that management has placed on nonaccrual status.

• For impaired loans we calculate the estimated fair value of the loans that are selected for review based on observable market prices, discounted cash flows or the value of the underlying collateral and record an allowance if needed.

• We then select pools of homogeneous smaller balance loans, having similar risk characteristics, as well as unimpaired larger commercial loans, that have similar risk characteristics, for evaluation collectively under the provisions of FASB ASC Topic 450, “Contingencies.” These smaller balance loans generally include residential mortgages, consumer loans, installment loans and some commercial loans.

• FASB ASC Topic 450 loans are segmented into groups with similar characteristics and an allowance for credit losses is allocated to each segment based on recent loss history and other relevant information.

• We then review the results to determine the appropriate balance of the allowance for credit losses. This review includes consideration of additional factors, such as the mix of loans in the portfolio, the balance of the allowance relative to total loans and nonperforming assets, trends in the overall risk profile in the portfolio, trends in delinquencies and nonaccrual loans, and local and national economic information and industry data, including trends in the industries we believe are higher risk.

There are many factors affecting the allowance for credit losses; some are quantitative, while others require qualitative judgment. These factors require the use of estimates related to the amount and timing of expected future cash flows, appraised values on impaired loans, estimated losses for each loan category based on historical loss experience by category, loss emergence periods for each loan category and consideration of current economic trends and conditions, all of which may be susceptible to significant judgment and change. To the extent that actual outcomes differ from estimates, additional provisions for credit losses could be required that could adversely affect our earnings or financial position in future periods. The loan portfolio represents the largest asset category on our Consolidated Statements of Financial Condition.

Fair Values of Financial Instruments

FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” establishes a framework for measuring fair value. In accordance with FASB ASC Topic 820, First Commonwealth groups financial assets and financial liabilities measured at fair value into three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

Level 1 valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 valuations are for instruments that trade in less active dealer or broker markets and incorporate values obtained for identical or comparable instruments. Level 3 valuations are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to each instrument.

Level 2 investment securities are valued by a recognized third party pricing service using observable inputs. Management validates the market values provided by the third party service by having another recognized pricing service price 100% of securities on an annual basis and a random sample of securities each quarter, monthly monitoring of variances from prior period pricing and on a monthly basis evaluating pricing changes compared to expectations based on changes in the financial markets.

Level 3 investments include pooled trust preferred collateralized debt obligations. The fair values of these investments are determined by a specialized third party valuation service. Management validates the fair value of the pooled trust preferred collateralized debt obligations by monitoring the performance of the underlying collateral, discussing the discount rate, cash flow assumptions and general market trends with the specialized third party and by confirming changes in the underlying collateral to the trustee and underwriter reports. Management’s monitoring of the underlying collateral includes deferrals of interest payments, payment defaults, cures of previously deferred interest payments, any regulatory filings or actions and general news related to the underlying collateral. Management also evaluates fair value changes compared to expectations based on changes in the interest rates used in determining the discount rate and general financial markets.

Methodologies and estimates used by management when determining the fair value for pooled trust preferred collateralized debt obligations and testing those securities for other-than-temporary impairment are discussed in detail in Management’s

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Discussion and Analysis of Financial Condition and Results of Operations and in Note 10 “Impairment of Investment Securities” and Note 19 “Fair Values of Assets and Liabilities” of Notes to the Consolidated Financial Statements.

Income Taxes

We estimate income tax expense based on amounts expected to be owed to the tax jurisdictions where we conduct business. On a quarterly basis, management assesses the reasonableness of its effective tax rate based upon its current estimate of the amount and components of net income, tax credits and the applicable statutory tax rates expected for the full year.

Deferred income tax assets and liabilities are determined using the asset and liability method and are reported in the Consolidated Statements of Financial Condition. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If current available information raises doubt as to the realization of the deferred tax assets, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. Management assesses all available positive and negative evidence on a quarterly basis to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. The amount of future taxable income used in management’s valuation is based upon management approved forecasts, evaluation of historical earnings levels, proven ability to raise capital to support growth or during times of economic stress and consideration of prudent and feasible potential tax strategies. If future events differ from our current forecasts, a valuation allowance may be required, which could have a material impact on our financial condition and results of operations.

Accrued taxes represent the net estimated amount due to taxing jurisdictions and are reported in other liabilities in the Consolidated Statements of Financial Condition. Management evaluates and assesses the relative risks and appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other information and maintains tax accruals consistent with its evaluation of these relative risks and merits. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance. These changes, when they occur, can affect deferred taxes and accrued taxes, as well as the current period’s income tax expense and can be significant to our operating results.

Results of Operations—2017 Compared to 2016

Net Income

Net income for 2017 was $55.2 million, or $0.58 per diluted share, as compared to net income of $59.6 million, or $0.67 per diluted share, in 2016. The decline in net income can be attributed to a $16.7 million non-cash charge for the revaluation of deferred tax assets recorded in connection with the passage of the Tax Cuts and Jobs Act and an increase of $7.0 million in merger and acquisition related expense as a result of the acquisition of DCB Financial in April 2017.

Also impacting net income for 2017 was an increase in net interest income of $29.7 million, growth in noninterest income of $15.7 million and a decrease in provision for credit losses of $13.4 million. These changes were partially offset by an increase in noninterest expense, including merger and acquisition expense, of $40.4 million.

Our return on average equity was 6.5% and our return on average assets was 0.77% for 2017, compared to 8.0% and 0.89%, respectively, for 2016. The previously mentioned charge related to the revaluation of deferred tax assets impacted 2017 return on average equity and return on average assets by 195 and 23 basis points, respectively.

Average diluted shares for the year 2017 were 7% more than the comparable period in 2016 primarily due to the issuance of 8.4 million shares of common stock as a result of the acquisition of DCB Financial.

Net Interest Income

Net interest income, which is our primary source of revenue, is the difference between interest income from earning assets (loans and securities) and interest expense paid on liabilities (deposits, short-term borrowings and long-term debt). The amount of net interest income is affected by both changes in the level of interest rates and the amount and composition of interest-earning assets and interest-bearing liabilities. The net interest margin is expressed as the percentage of net interest income, on a fully taxable equivalent basis, to average interest-earning assets. To compare the tax exempt asset yields to taxable yields, amounts are adjusted to the pretax equivalent amounts based on the marginal corporate federal income tax rate of 35%. The taxable equivalent adjustment to net interest income for 2017 was $4.2 million compared to $3.8 million in 2016. Net interest income comprises a majority of our operating revenue (net interest income before provision expense plus noninterest income) at 74% and 75% for the years ended December 31, 2017 and 2016, respectively.

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Net interest income, on a fully taxable equivalent basis, was $233.0 million for the year-ended December 31, 2017, a $30.1 million, or 15%, increase compared to $202.9 million for the same period in 2016. The net interest margin, on a fully taxable equivalent basis, increased 25 basis points to 3.57% in 2017 from 3.32% in 2016. The net interest margin is affected by both changes in the level of interest rates and the amount and composition of interest-earning assets and interest-bearing liabilities.

Growth in both the level of interest-earning assets and the rates earned on those assets contributed to the increase in the net interest margin for the year ended December 31, 2017. Average earning assets for the year ended December 31, 2017 increased $422.1 million, or 7%, compared to the year ended December 31, 2016. Interest-sensitive assets totaling $3.5 billion will either reprice or mature over the next twelve months.

The taxable equivalent yield on interest-earning assets was 3.90% for the year ended December 31, 2017, an increase of 27 basis points from the 3.63% yield for the same period in 2016. This increase is largely due to the loan portfolio yield which improved by 29 basis points when compared to the prior year. Contributing to this increase was the yield on our adjustable and variable rate commercial loan portfolios, which increased 36 basis points largely due to the Federal Reserve increasing short term interest rates three times in 2017. In addition, the yield on the investment portfolio increased 7 basis points in comparison to the prior year. This increase can be attributed to the runoff or sale of lower yielding securities being replaced with higher yielding investment securities. Investment portfolio purchases during the year ended December 31, 2017 have been primarily in mortgage-related assets with approximate durations of 48-60 months, as well as municipal and corporate securities with durations of approximately ten years. The mortgage-related investments have monthly principal payments that will provide for reinvestment opportunities should interest rates rise.

Increases in the cost of interest-bearing liabilities partially offset the positive impact of higher yields on interest-earning assets. The cost of interest-bearing liabilities was 0.44% for the year-ended December 31, 2017, compared to 0.39% for the same period in 2016. This increase is primarily due to an 8 basis point increase in the cost of interest-bearing demand deposits, a 43 basis point increase in the cost of short-term borrowings and a 45 basis point increase in the cost of long-term debt. While deposits acquired in our recent acquisitions contributed to a decline in average short-term borrowings of $520.3 million for the year-ended December 31, 2017 compared to the same period in 2016, higher market interest rates resulted in an increase of 43 basis points in the cost of short-term borrowings in comparison to the same period in the prior year.

Comparing the year ended December 31, 2017 with the same period in 2016, changes in rates positively impacted net interest income by $11.3 million. The higher yield on interest-earning assets favorably impacted net interest income by $16.4 million, while a change in the mix of interest-bearing liabilities had a positive impact of $1.9 million on net interest income.

Changes in the volume of interest-earning assets and interest-bearing liabilities positively increased net interest income by $18.8 million in the year ended December 31, 2017 compared to the same period in 2016. Higher levels of interest-earning assets resulted in an increase of $17.0 million in interest income, while reductions in time deposits and short-term borrowings contributed to a decrease in interest expense of $1.9 million.

Positively affecting net interest income was a $173.3 million increase in average net free funds at December 31, 2017 as compared to December 31, 2016. Average net free funds are the excess of noninterest-bearing demand deposits, other noninterest-bearing liabilities and shareholders’ equity over noninterest-earning assets. The largest component of the increase in net free funds was a $209.9 million increase in average noninterest-bearing demand deposits. The increase in these deposits is largely impacted by deposits acquired from 13 FirstMerit branches in December 2016 as well as deposits from the acquisition of DCB Financial in April 2017. Average time deposits for the year ended December 31, 2017 decreased $6.3 million, or 1%, compared to the comparable period in 2016, while the average rate paid on time deposits increased 2 basis points. Over the next twelve months $376.2 million in certificates of deposits either mature or reprice.

The following table reconciles interest income in the Consolidated Statements of Income to net interest income adjusted to a fully taxable equivalent basis for the periods presented:

	For the Years Ended December 31,
	2017		2016		2015
	(dollars in thousands)
Interest income per Consolidated Statements of Income	$	250,550	$	217,614	$	204,071
Adjustment to fully taxable equivalent basis	4,225		3,846		3,465
Interest income adjusted to fully taxable equivalent basis (non-GAAP)	254,775		221,460		207,536
Interest expense	21,770		18,579		15,595
Net interest income adjusted to fully taxable equivalent basis (non-GAAP)	$	233,005	$	202,881	$	191,941

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The following table provides information regarding the average balances and yields or rates on interest-earning assets and interest-bearing liabilities for the periods ended December 31:

	Average Balance Sheets and Net Interest Analysis
	2017							2016							2015
	Average Balance			Income / Expense (a)		Yield or Rate		Average Balance			Income / Expense (a)		Yield or Rate		Average Balance			Income / Expense (a)		Yield or Rate
	(dollars in thousands)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	11,621		$	121	1.04	%	$	5,799		$	27	0.46	%	$	8,640		$	14	0.16	%
Tax-free investment securities	67,407			2,495		3.70		62,632			2,305		3.68		40,459			1,534		3.79
Taxable investment securities	1,173,711			30,277		2.58		1,221,961			30,745		2.52		1,248,689			30,241		2.42
Loans, net of unearned income (b)(c)(e)	5,278,511			221,882		4.20		4,818,759			188,383		3.91		4,553,634			175,747		3.86
Total interest-earning assets	6,531,250			254,775		3.90		6,109,151			221,460		3.63		5,851,422			207,536		3.55
Noninterest-earning assets:
Cash	90,614							70,408							66,937
Allowance for credit losses	(51,187		)					(57,253		)					(49,776		)
Other assets	639,785							538,310							530,068
Total noninterest-earning assets	679,212							551,465							547,229
Total Assets	$	7,210,462						$	6,660,616						$	6,398,651
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand deposits (d)	$	1,059,840		$	1,466	0.14	%	$	748,869		$	480	0.06	%	$	654,926		$	231	0.04	%
Savings deposits (d)	2,369,605			4,207		0.18		1,910,333			3,370		0.18		1,855,024			2,542		0.14
Time deposits	578,158			3,742		0.65		584,429			3,673		0.63		689,247			4,701		0.68
Short-term borrowings	867,391			8,799		1.01		1,387,737			8,076		0.58		1,252,531			5,018		0.40
Long-term debt	86,391			3,556		4.12		81,197			2,980		3.67		119,277			3,103		2.60
Total interest-bearing liabilities	4,961,385			21,770		0.44		4,712,565			18,579		0.39		4,571,005			15,595		0.34
Noninterest-bearing liabilities and shareholders’ equity:
Noninterest-bearing demand deposits (d)	1,356,125							1,146,189							1,052,886
Other liabilities	37,818							58,918							56,036
Shareholders’ equity	855,134							742,944							718,724
Total noninterest-bearing funding sources	2,249,077							1,948,051							1,827,646
Total Liabilities and Shareholders’ Equity	$	7,210,462						$	6,660,616						$	6,398,651
Net Interest Income and Net Yield on Interest-Earning Assets				$	233,005	3.57	%				$	202,881	3.32	%				$	191,941	3.28	%

(a) Income on interest-earning assets has been computed on a fully taxable equivalent basis using the 35% federal income tax statutory rate.

(b) Income on nonaccrual loans is accounted for on the cash basis, and the loan balances are included in interest-earning assets.

(c) Loan income includes loan fees.

(d) Average balances do not include reallocations from noninterest-bearing demand deposits and interest-bearing demand deposits into savings deposits which were made for regulatory purposes.

(e) Includes held for sale loans.

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The following table sets forth certain information regarding changes in net interest income attributable to changes in the volume of interest-earning assets and interest-bearing liabilities and changes in the rates for the periods indicated:

	Analysis of Year-to-Year Changes in Net Interest Income
	2017 Change from 2016								2016 Change from 2015
	Total Change			Change Due To Volume			Change Due To Rate (a)		Total Change			Change Due To Volume			Change Due To Rate (a)
	(dollars in thousands)
Interest-earning assets:
Interest-bearing deposits with banks	$	94		$	27		$	67	$	13		$	(5	)	$	18
Tax-free investment securities	190			176			14		771			840			(69		)
Taxable investment securities	(468		)	(1,216		)	748		504			(647		)	1,151
Loans	33,499			17,976			15,523		12,636			10,234			2,402
Total interest income (b)	33,315			16,963			16,352		13,924			10,422			3,502
Interest-bearing liabilities:
Interest-bearing demand deposits	986			187			799		249			38			211
Savings deposits	837			827			10		828			77			751
Time deposits	69			(40		)	109		(1,028		)	(713		)	(315		)
Short-term borrowings	723			(3,018		)	3,741		3,058			541			2,517
Long-term debt	576			191			385		(123		)	(990		)	867
Total interest expense	3,191			(1,853		)	5,044		2,984			(1,047		)	4,031
Net interest income	$	30,124		$	18,816		$	11,308	$	10,940		$	11,469		$	(529	)

(a) Changes in interest income or expense not arising solely as a result of volume or rate variances are allocated to rate variances.

(b) Changes in interest income have been computed on a fully taxable equivalent basis using the 35% federal income tax statutory rate.

Provision for Credit Losses

The provision for credit losses is determined based on management’s estimates of the appropriate level of the allowance for credit losses needed to absorb probable losses incurred in the loan portfolio, after giving consideration to charge-offs and recoveries for the period. The provision for credit losses is an amount added to the allowance against which credit losses are charged.

The table below provides a breakout of the provision for credit losses by loan category for the years ended December 31:

	2017					2016
	Dollars			Percentage		Dollars			Percentage
	(dollars in thousands)
Commercial, financial, agricultural and other	$	(9,812	)	(193	)%	$	20,378		110	%
Real estate construction	302			6		(872		)	(5	)
Residential real estate	1,164			23		613			4
Commercial real estate	10,800			212		(6,257		)	(34	)
Loans to individuals	2,633			52		4,618			25
Total	$	5,087		100	%	$	18,480		100	%

The provision for credit losses for the year 2017 totaled $5.1 million, a decrease of $13.4 million, or 72.5%, compared to the year 2016. The level of provision expense for the year-ended December 31, 2017 is primarily a result of net charge-offs in loans to individuals and commercial, financial, agricultural and other loans, as well as an increase in specific reserves related to nonperforming loans of $0.6 million. Net charge-offs related to loans to individuals were $3.7 million for the year ended December 31, 2017, including $2.4 million related to indirect auto loans and $0.8 million related to personal lines of credit. Net charge-offs on commercial, financial, agricultural and other loans were $2.7 million for the same period. The level of provision expense in the commercial, financial, agricultural and other category as well as in the commercial real estate category was also impacted by the Company's periodic assessment of the allowance for loan methodology, the current lending

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environment, and associated risks for each portfolio, which resulted in changes to certain qualitative factors, such as collateral recovery rates and vacancy rates.

The majority of the 2016 provision expense is attributable to commercial, financial, agricultural and other loans as a result of specific reserves established for two loan relationships, as well as increases in historical loss factors and increases in qualitative factors related to certain recovery rates. The negative provision for commercial real estate loans is a result of declines in historical loss factors related to this category. The provision for loans to individuals is related to charge-offs in the indirect automobile portfolio as well as changes in qualitative factors that relate to the automobile industry.

The allowance for credit losses was $48.3 million, or 0.89%, of total loans outstanding and 0.96% of total originated loansat December 31, 2017, compared to $50.2 million, or 1.03%, and 1.05%, respectively, at December 31, 2016. Nonperforming loans as a percentage of total loans decreased to 0.78% at December 31, 2017 from 0.86% at December 31, 2016. The allowance to nonperforming loan ratio was 114.3% as of December 31, 2017 and 120.0% at December 31, 2016. Net charge-offs were $7.0 million for the year-ended December 31, 2017 compared to $19.1 million for the same period in 2016.

The provision is a result of management’s assessment of credit quality statistics and other factors that would have an impact on probable losses in the loan portfolio and the methodology used for determination of the adequacy of the allowance for credit losses. The change in the allowance for credit losses is consistent with the decrease in estimated losses within the loan portfolio determined by factors including certain loss events, portfolio migration analysis, loss emergence periods, historical loss experience, delinquency trends, deterioration in collateral values and volatility in economic indicators such as growth in GDP, consumer price index, vacancy rates and unemployment levels. Management believes that the allowance for credit losses is at a level deemed sufficient to absorb losses inherent in the loan portfolio at December 31, 2017.

A detailed analysis of our credit loss experience for the previous five years is shown below:

	2017			2016			2015			2014			2013
	(dollars in thousands)
Loans outstanding at end of year	$	5,407,376		$	4,879,347		$	4,683,750		$	4,457,308		$	4,283,833
Average loans outstanding	$	5,278,511		$	4,818,759		$	4,553,634		$	4,356,566		$	4,255,593
Balance, beginning of year	$	50,185		$	50,812		$	52,051		$	54,225		$	67,187
Loans charged off:
Commercial, financial, agricultural and other	6,634			19,603			11,429			8,911			18,399
Real estate construction	—			—			8			296			773
Residential real estate	1,287			1,189			1,539			3,153			1,814
Commercial real estate	340			570			1,538			1,148			10,513
Loans to individuals	4,248			4,943			4,354			3,964			3,679
Total loans charged off	12,509			26,305			18,868			17,472			35,178
Recoveries of loans previously charged off:
Commercial, financial, agricultural and other	3,901			4,164			1,097			734			455
Real estate construction	470			562			84			1,340			501
Residential real estate	371			481			587			650			1,264
Commercial real estate	278			1,522			229			612			136
Loans to individuals	515			469			684			766			633
Total recoveries	5,535			7,198			2,681			4,102			2,989
Net charge-offs	6,974			19,107			16,187			13,370			32,189
Provision charged to expense	5,087			18,480			14,948			11,196			19,227
Balance, end of year	$	48,298		$	50,185		$	50,812		$	52,051		$	54,225
Ratios:
Net charge-offs as a percentage of average loans outstanding	0.13		%	0.40		%	0.36		%	0.31		%	0.76		%
Allowance for credit losses as a percentage of end-of-period loans outstanding	0.89		%	1.03		%	1.08		%	1.17		%	1.27		%

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Noninterest Income

The components of noninterest income for each year in the three-year period ended December 31 are as follows:

									2017 compared to 2016
	2017			2016		2015			$ Change			% Change
	(dollars in thousands)
Noninterest Income:
Trust income	$	7,098		$	5,366	$	5,834		$	1,732		32	%
Service charges on deposit accounts	18,579			15,869		15,319			2,710			17
Insurance and retail brokerage commissions	8,807			7,964		8,522			843			11
Income from bank owned life insurance	5,699			5,381		5,412			318			6
Card related interchange income	18,780			14,955		14,501			3,825			26
Swap fee income	2,005			2,359		847			(354		)	(15	)
Other income	7,677			6,372		7,041			1,305			20
Subtotal	68,645			58,266		57,476			10,379			18
Net securities gains (losses)	5,040			617		(153		)	4,423			717
Gain on sale of mortgage loans	5,366			4,086		2,421			1,280			31
Gain on sale of loans and other assets	1,753			1,411		1,855			342			24
Derivative mark to market	(473		)	219		(274		)	(692		)	(316	)
Total noninterest income	$	80,331		$	64,599	$	61,325		$	15,732		24	%

Noninterest income, excluding net securities gains (losses), gain on sale of loans and other assets and the derivatives mark to market, increased $10.4 million, or 18%, in 2017. Service charges on deposit accounts increased $2.7 million, of which $2.0 million can be attributed to deposit accounts acquired in the December 2016 acquisition of 13 FirstMerit branches and the acquisition of DCB in April 2017. Card-related interchange income increased $3.8 million, of which $2.9 million is attributable to the acquisitions. Insurance and retail brokerage commissions increased $0.8 million due to higher annuity and mutual fund sales. Trust income increased $1.7 million, of which $1.0 million can be attributed to accounts obtained in the DCB acquisition. Offsetting these increases was a decrease in swap fee income of $0.4 million, due to a decline in interest rate swaps entered into by our commercial loan customers.

Total noninterest income increased $15.7 million, or 24%, in comparison to the year ended December 31, 2016. The most notable change is a $4.4 million increase in net securities gains (losses) due to the early redemption of two of our pooled trust preferred securities. The majority of this increase is the result of a successful auction call completed on PreTSL XIII, a pooled trust preferred security on which other-than-temporary impairment charges were recognized in 2009 and 2010. As a result, the security was called at par resulting in a gain of $4.3 million. Additionally, the liquidation of PreTSL VII provided for a gain of $0.7 million. The gain on sale of mortgage loans increased $1.3 million due to continued growth in mortgage loan originations since the Company reentered the secondary mortgage market. The derivatives mark to market decreased $0.7 million. This reflects a change in fair value due to movements in corporate bond spreads and not a realized loss on the swaps.

If the Company's total assets would equal or exceed $10 billion we would no longer qualify for exemption from the interchange fee cap included in the Dodd-Frank Act. The estimated impact of this change would decrease interchange income by $7.6 million.

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Noninterest Expense

The components of noninterest expense for each year in the three-year period ended December 31 are as follows:

							2017 Compared to 2016
	2017		2016		2015		$ Change			% Change
	(dollars in thousands)
Noninterest Expense:
Salaries and employee benefits	$	103,714	$	87,125	$	89,161	$	16,589		19	%
Net occupancy	15,648		13,150		13,712		2,498			19
Furniture and equipment	13,508		11,624		10,737		1,884			16
Data processing	9,090		7,429		6,123		1,661			22
Advertising and promotion	3,786		2,601		2,638		1,185			46
Pennsylvania shares tax	4,209		3,825		4,693		384			10
Intangible amortization	3,081		547		605		2,534			463
Collection and repossession	1,905		2,250		2,826		(345		)	(15	)
Other professional fees and services	4,761		3,915		4,034		846			22
FDIC insurance	3,210		3,903		4,014		(693		)	(18	)
Other operating expenses	23,289		17,808		19,178		5,481			31
Subtotal	186,201		154,177		157,721		32,024			21
Loss on sale or write-down of assets	1,834		1,155		3,112		679			59
Litigation and operational losses	2,050		1,420		2,119		630			44
Merger and acquisition related	10,213		3,173		922		7,040			222
Total noninterest expense	$	200,298	$	159,925	$	163,874	$	40,373		25	%

Noninterest expense, excluding the loss on sale or write-down of assets, litigation and operational losses, and merger and acquisition related expense, increased $32.0 million, or 21%, for the year ended 2017 compared to 2016. Contributing to the 2017 increase is a $16.6 million increase in salaries and employee benefits primarily due to an increase of 98 full-time equivalent employees at December 31, 2017 compared to December 31, 2016. The higher number of employees is a result of the acquisition of 13 branches from FirstMerit in December 2016, the acquisition of DCB Financial in April 2017 and the continued expansion of our mortgage and commercial banking businesses in Ohio. Also contributing to the increase in salaries and employee benefits was $2.5 million of expense for a one-time bonus of $1,500 paid to all full and part-time employees (other than the top five named executive officers) following the passage of the Tax Cuts and Jobs Act. The two noted acquisitions also accounted for all of the $2.5 million increase in net occupancy expense, $1.0 million of the increase in furniture and equipment expense and all of the $2.5 million increase in intangible amortization.

Other operating expense increased $5.5 million for the year 2017 compared to 2016, primarily due to a $1.4 million increase in expense related to the reserve for unfunded loan commitments, a $1.7 million increase in data processing expense primarily relates to additional volume associated with increased debit cards and card usage as well as an increase in usage of digital channels.

Merger related expenses totaled $10.2 million and $3.2 million for the years 2017 and 2016, respectively. Expenses in 2017 reflect one-time expenses related to the acquisition of DCB Financial while expenses in 2016 reflect those expenses related to the acquisition of 13 FirstMerit branches. Merger expense in 2015 relates to the acquisition of First Community Bank.

Income Tax

The provision for income taxes of $48.6 million in 2017 reflects an increase of $22.9 million compared to the provision for income taxes in 2016. The majority of this change, $16.7 million, relates to a non-cash charge recorded for the revaluation of deferred tax assets in connection with the passage of the Tax Cuts and Jobs Act. The remaining increase in the provision for income taxes relates to the increase in the level of pretax income of $103.7 million and $85.2 million for 2017 and 2016, respectively.

The effective tax rate was 47% and 30% for tax expense in 2017 and 2016, respectively. Excluding the $16.7 million charge related to the revaluation of deferred tax assets, the effective tax rate for 2017 would have been 31%. We ordinarily generate an annual effective tax rate that is less than the statutory rate of 35% due to benefits resulting from tax-exempt interest, income from bank owned life insurance and tax benefits associated with low income housing tax credits, which are relatively consistent regardless of the level of pretax income.

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Financial Condition

First Commonwealth’s total assets increased $624.5 million in 2017. Loans, including loans held for sale, increased $535.8 million, or 11%, while investments increased $2.3 million, or less than 1%.

Loan growth in 2017 was impacted by $383.1 million of loans acquired as part of the DCB Financial acquisition, including $44.8 million in commercial, financial, agricultural and other, $25.2 million in real estate construction, $197.5 million in residential real estate, $109.8 million in commercial real estate and $5.8 million in loans to individuals.

During 2017, approximately $343.5 million in investment securities were sold, called or matured. Some of these securities were lower yielding securities and as such, their replacement contributed to the increase in yield earned on the portfolio. In total, $241.1 million in mortgage-backed securities, $10.0 million in corporate securities and $2.0 million in municipal securities were purchased in 2017 to help increase earnings from the portfolio while maintaining a reduced risk profile.

First Commonwealth’s total liabilities increased $486.3 million, or 8%, in 2017. Deposits increased $633.3 million, or 13%, largely due to $484.4 million in deposits obtained as part of the DCB Financial acquisition. Short-term debt decreased $160.5 million or 18%, based on liquidity needs, and long-term debt increased $7.0 million, or 9%, primarily due to the DCB Financial acquisition.

Total shareholders' equity increased $138.2 million in 2017. Growth in shareholders' equity was a result of net income of $55.2 million and $110.7 million in common stock issued in relation to the DCB Financial acquisition, partially offset by $30.5 million in dividends declared, a $0.9 million increase in accumulated other comprehensive income and $1.5 million in stock repurchases.

Loan Portfolio

Following is a summary of our loan portfolio as of December 31:

	2017				2016				2015				2014				2013
	Amount		%		Amount		%		Amount		%		Amount		%		Amount		%
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,163,383	22	%	$	1,139,547	23	%	$	1,150,906	25	%	$	1,052,109	24	%	$	1,021,056	24	%
Real estate construction	248,868		5		219,621		5		220,736		5		120,785		3		93,289		2
Residential real estate	1,426,370		26		1,229,192		25		1,224,465		26		1,226,344		27		1,262,718		30
Commercial real estate	2,019,096		37		1,742,210		36		1,479,000		31		1,405,256		31		1,296,472		30
Loans to individuals	549,659		10		548,777		11		608,643		13		652,814		15		610,298		14
Total loans and leases net of unearned income	$	5,407,376	100	%	$	4,879,347	100	%	$	4,683,750	100	%	$	4,457,308	100	%	$	4,283,833	100	%

The loan portfolio totaled $5.4 billion as of December 31, 2017, reflecting growth of $528.0 million, or 11%, compared to December 31, 2016. Loan growth was experienced in all categories, with commercial real estate and residential real estate categories providing the majority of the growth. Commercial real estate loans increased $276.9 million, or 15.9%, of which $109.8 million was acquired as part of the DCB acquisition. The remaining $167.1 million increase in this category can be largely attributed to growth in direct middle market lending in Pennsylvania and Ohio. Excluding the impact of the acquired loans, the residential real estate portfolio remained relatively flat as new volumes basically replaced runoff as many of the loans originated by our mortgage banking area are sold in the secondary market. Growth in commercial, financial, agricultural and other and loans to individuals is largely due to balances acquired as part of the DCB acquisition. Growth acquired in the loans to individuals category was largely offset by runoff of indirect auto loans as a result of increased pricing spreads for this category.

The majority of our loan portfolio is with borrowers located in Pennsylvania. The Company expanded into the Ohio market area with the opening of a loan production office in Cleveland, Ohio in 2013, the acquisition of First Community Bank of Columbus, Ohio in the fourth quarter of 2015, the purchase of 13 FirstMerit Bank, NA branches in December 2016 and the acquisition of DCB Financial in May 2017. As of December 31, 2017 and 2016, there were no concentrations of loans relating to any industry in excess of 10% of total loans.

As of December 31, 2017, criticized loans (i.e., loans designated OAEM, substandard, impaired or doubtful) decreased $10.0 million, or 7%, from December 31, 2016. Criticized loans totaled $124.4 million at December 31, 2017 and represented 2% of the total loan portfolio. Additionally, delinquencies on accruing loans decreased$0.5 million, or 4%, at December 31, 2017

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compared to December 31, 2016. As of December 31, 2017, nonaccrual loans increased $2.7 million, or 9%, compared to December 31, 2016.

Final loan maturities and rate sensitivities of the loan portfolio excluding consumer installment and mortgage loans at December 31, 2017 were as follows:

	Within One Year		One to 5 Years		After 5 Years		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	159,751	$	661,245	$	341,761	$	1,162,757
Real estate construction (a)	38,907		138,388		42,279		219,574
Commercial real estate	254,388		696,366		1,059,952		2,010,706
Other	3,343		24,898		117,696		145,937
Totals	$	456,389	$	1,520,897	$	1,561,688	$	3,538,974
Loans at fixed interest rates			386,073		373,180
Loans at variable interest rates			1,134,825		1,188,507
Totals			$	1,520,898	$	1,561,687

(a) The maturity of real estate construction loans include term commitments that follow the construction period. Loans with these term commitments will be moved to the commercial real estate category when the construction phase of the project is completed.

First Commonwealth has a legal lending limit of $106.9 million to any one borrower or closely related group of borrowers, but has established lower thresholds for credit risk management.

Nonperforming Loans

Nonperforming loans include nonaccrual loans and restructured loans. Nonaccrual loans represent loans on which interest accruals have been discontinued. Restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the deteriorating financial position of the borrower under terms not available in the market.

We discontinue interest accruals on a loan when, based on current information and events, it is probable that we will be unable to fully collect principal or interest due according to the contractual terms of the loan. Consumer loans are placed in nonaccrual status at 150 days past due.  Other types of loans are typically placed in nonaccrual status when there is evidence of a significantly weakened financial condition or principal and interest is 90 days or more delinquent. Interest received on a nonaccrual loan is normally applied as a reduction to loan principal rather than interest income utilizing the cost recovery methodology of revenue recognition.

Nonperforming loans are closely monitored on an ongoing basis as part of our loan review and work-out process. The probable risk of loss on these loans is evaluated by comparing the loan balance to the fair value of any underlying collateral and the present value of projected future cash flows. Losses are recognized when a loss is probable and the amount is reasonably estimable.

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The following is a comparison of nonperforming and impaired assets and the effects on interest due to nonaccrual loans for the period ended December 31:

	2017			2016			2015			2014			2013
	(dollars in thousands)
Nonperforming Loans:
Loans on nonaccrual basis	$	19,455		$	16,454		$	24,345		$	25,715		$	28,908
Loans held for sale on nonaccrual basis	—			—			—			—			—
Troubled debt restructured loans on nonaccrual basis	11,222			11,569			12,360			16,952			16,980
Troubled debt restructured loans on accrual basis	11,563			13,790			14,139			12,584			13,495
Total nonperforming loans	$	42,240		$	41,813		$	50,844		$	55,251		$	59,383
Loans past due in excess of 90 days and still accruing	$	1,854		$	2,131		$	2,455		$	2,619		$	2,505
Other real estate owned	$	2,765		$	6,805		$	9,398		$	7,197		$	11,728
Loans outstanding at end of period	$	5,407,376		$	4,879,347		$	4,683,750		$	4,457,308		$	4,283,833
Average loans outstanding	$	5,278,511		$	4,818,759		$	4,553,634		$	4,356,566		$	4,255,593
Nonperforming loans as a percentage of total loans	0.78		%	0.86		%	1.09		%	1.24		%	1.39		%
Provision for credit losses	$	5,087		$	18,480		$	14,948		$	11,196		$	19,227
Allowance for credit losses	$	48,298		$	50,185		$	50,812		$	52,051		$	54,225
Net charge-offs	$	6,974		$	19,107		$	16,187		$	13,370		$	32,189
Net charge-offs as a percentage of average loans outstanding	0.13		%	0.40		%	0.36		%	0.31		%	0.76		%
Provision for credit losses as a percentage of net charge-offs	72.94		%	96.72		%	92.35		%	83.74		%	59.73		%
Allowance for credit losses as a percentage of end-of-period loans outstanding (a)	0.89		%	1.03		%	1.08		%	1.17		%	1.27		%
Allowance for credit losses as a percentage of nonperforming loans (a)	114.34		%	120.02		%	99.94		%	94.21		%	91.31		%
Gross income that would have been recorded at original rates	$	2,079		$	1,296		$	572		$	784		$	7,920
Interest that was reflected in income	783			533			—			—			679
Net reduction to interest income due to nonaccrual	$	1,296		$	763		$	572		$	784		$	7,241

(a) End of period loans and nonperforming loans exclude loans held for sale.

Nonperforming loans increased $0.4 million to $42.2 million at December 31, 2017, compared to $41.8 million at December 31, 2016. Nonperforming loans as a percentage of total loans decreased to 0.8% from 0.9% at December 31, 2017 compared to December 31, 2016. The December 31, 2017 nonaccrual loan balance includes $1.4 million in loans acquired from DCB Financial in April 2017. Excluding acquired loans, nonperforming loans would have decreased $1.0 million compared to December 31, 2016 as a result of payoffs totaling $8.5 million on loans related to four borrowers and the charge-off of two commercial relationships totaling $0.7 million. Offsetting these decreases is the addition of two commercial relationships totaling $9 million. Other real estate owned totaled $2.8 million at December 31, 2017, compared to $6.8 million at December 31, 2016.

Also included in nonperforming loans are troubled debt restructured loans (“TDRs”). TDRs are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the deteriorating financial position of the borrower under terms not available in the market. TDRs decreased $2.6 million during 2017. For additional information on TDRs please refer to Note 11 “Loans and Allowance for Credit Losses.”

Net charge-offs were $7.0 million in 2017 compared to $19.1 million for the year 2016. The most significant credit losses recognized during the year include $3.4 million in charge-offs recognized on two commercial relationships, of which $1.9 million was recognized on a relationship that was transferred to held for sale and subsequently sold in April 2017. Also

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impacting this category were recoveries of $3.1 million on two commercial relationships. Net charge-offs in the loans to individual category totaled $3.7 million for 2017, with $2.4 million related to indirect auto loans and $0.8 million to personal lines of credit. Additional detail on credit risk is included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under “Provision for Credit Losses,” “Allowance for Credit Losses" and "Credit Risk.”

Provision for credit losses as a percentage of net charge-offs decreased to 72.9% for the year ended December 31, 2017 from 96.7% for the year ended December 31, 2016.

Allowance for Credit Losses

Following is a summary of the allocation of the allowance for credit losses at December 31:

	2017					2016					2015					2014					2013
	Allowance Amount			% (a)		Allowance Amount			% (a)		Allowance Amount			% (a)		Allowance Amount			% (a)		Allowance Amount			% (a)
	(dollars in thousands)
Commercial, financial, agricultural and other	$	23,429		22	%	$	35,974		23	%	$	31,035		25	%	$	29,627		24	%	$	22,663		24	%
Real estate construction	1,349			5		577			5		887			5		2,063			3		6,600			2
Residential real estate	2,759			26		2,511			25		2,606			26		3,664			27		7,727			30
Commercial real estate	17,357			37		6,619			36		11,924			31		11,881			31		11,778			30
Loans to individuals	3,404			10		4,504			11		4,360			13		4,816			15		5,457			14
Total	$	48,298				$	50,185				$	50,812				$	52,051				$	54,225
Allowance for credit losses as percentage of end-of-period loans outstanding	0.89		%			1.03		%			1.08		%			1.17		%			1.27		%

(a) Represents the ratio of loans in each category to total loans.

The allowance for credit losses decreased $1.9 million from December 31, 2016 to December 31, 2017. The allowance for credit losses as a percentage of end-of-period loans outstanding was 0.9% at December 31, 2017 compared to 1.0% at December 31, 2016. The allowance for credit losses includes both a general reserve for performing loans and specific reserves for impaired loans. Comparing December 31, 2017 to December 31, 2016, the general reserve for performing loans decreased from 0.97% to 0.83% of total performing loans. General reserves as a percentage of non-impaired originated loans were 0.90% at December 31, 2017 compared to 0.99% at December 31, 2016. Specific reserves increased from 7.5% of nonperforming loans at December 31, 2016 to 8.9% of nonperforming loans at December 31, 2017. The allowance for credit losses as a percentage of nonperforming loans was 114.3% and 120.0% at December 31, 2017 and 2016, respectively.

The allowance for credit losses represents management’s estimate of probable losses incurred in the loan portfolio at a specific point in time. This estimate includes losses associated with specifically identified loans, as well as estimated probable credit losses inherent in the remainder of the loan portfolio. Additions are made to the allowance through both periodic provisions charged to income and recoveries of losses previously incurred. Reductions to the allowance occur as loans are charged off. Management evaluates the adequacy of the allowance at least quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and nonaccrual trends, portfolio growth, net realizable value of collateral and current economic conditions. This evaluation is subjective and requires material estimates that may change over time. For a description of the methodology used to calculate the allowance for credit losses, please refer to “Critical Accounting Policies and Significant Accounting Estimates—Allowance for Credit Losses.”

Management reviews local and national economic information and industry data, including trends in the industries we believe are indicative of higher risk to our portfolio. Factors reviewed by management include employment trends, macroeconomic trends, commercial real estate trends and the overall lending environment.

Investment Portfolio

Marketable securities that we hold in our investment portfolio, which are classified as “securities available for sale,” may be a source of liquidity; however, we do not anticipate liquidating the investments prior to maturity. As indicated in Note 19 “Fair Values of Assets and Liabilities,” $25.3 million of available for sale securities at December 31, 2017, are classified as Level 3 assets because of inactivity in the market.

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Following is a detail schedule of the amortized cost of securities available for sale as of December 31:

	2017		2016		2015
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	10,556	$	15,143	$	20,034
Mortgage-Backed Securities—Commercial	24,611		—		—
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	632,422		683,601		778,476
Mortgage-Backed Securities—Commercial	—		1		28
Other Government-Sponsored Enterprises	1,098		16,700		19,201
Obligations of States and Political Subdivisions	27,083		27,075		27,066
Corporate Securities	15,907		5,903		1,897
Pooled Trust Preferred Collateralized Debt Obligations	27,499		39,989		42,239
Total Debt Securities	739,176		788,412		888,941
Equities	1,670		1,670		2,170
Total Securities Available for Sale	$	740,846	$	790,082	$	891,111

As of December 31, 2017, securities available for sale had a fair value of $731.4 million. Gross unrealized gains were $4.9 million and gross unrealized losses were $14.3 million.

The following is a schedule of the contractual maturity distribution of securities available for sale at December 31, 2017.

	U.S. Government Agencies and Corporations		States and Political Subdivisions		Other Securities		Total Amortized Cost (a)		Weighted Average Yield (b)
	(dollars in thousands)
Within 1 year	$	1,215	$	—	$	—	$	1,215	1.65	%
After 1 but within 5 years	5,513		—		13,989		19,502		3.07
After 5 but within 10 years	162,616		27,083		—		189,699		2.43
After 10 years	499,343		—		29,417		528,760		2.38
Total	$	668,687	$	27,083	$	43,406	$	739,176	2.41	%

(a) Equities are excluded from this schedule because they have an indefinite maturity.

(b) Yields are calculated on a taxable equivalent basis.

Mortgage-backed securities, which include mortgage-backed obligations of U.S. Government agencies and obligations of U.S. Government-sponsored enterprises, have contractual maturities ranging from less than one year to approximately 30 years and have anticipated average lives to maturity ranging from less than one year to approximately thirteen years.

The amortized cost of the available for sale investment portfolio decreased $49.2 million, or 6%, at December 31, 2017 compared to 2016. Contributing to this decline is the sale, call or maturity of $292.2 million in available for sale investments, partially offset by $150.9 million in purchases. Additional liquidity provided from sales, calls and maturities was utilized to fund growth in the loan portfolio.

Our available for sale investment portfolio includes an amortized cost of $27.5 million in pooled trust preferred collateralized debt obligations at December 31, 2017. The valuation of these securities involves evaluating relevant credit and structural aspects, determining appropriate performance assumptions and performing a discounted cash flow analysis.

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Following is a detail schedule of the amortized cost of securities held to maturity as of December 31:

	2017		2016		2015
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	3,925	$	4,297	$	4,775
Mortgage-Backed Securities—Commercial	58,249		34,444		16,843
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	305,126		280,430		315,609
Mortgage-Backed Securities—Commercial	14,056		14,675		15,187
Obligations of States and Political Subdivisions	40,540		38,667		31,910
Debt Securities Issued by Foreign Governments	200		—		—
Total Securities Held to Maturity	$	422,096	$	372,513	384,324

The following is a schedule of the contractual maturity distribution of securities held to maturity at December 31, 2017.

	U.S. Government Agencies and Corporations		States and Political Subdivisions		Other Securities		Total Amortized Cost		Weighted Average Yield
	(dollars in thousands)
Within 1 year	$	—	$	87	$	0	$	87	1.88	%
After 1 but within 5 years	—		3,463		200		3,663		2.49
After 5 but within 10 years	14,056		35,361		0		49,417		3.20
After 10 years	367,300		1,629		—		368,929		2.41
Total	$	381,356	$	40,540	$	200	$	422,096	2.50	%

See Note 9 “Investment Securities,” Note 10 “Impairment of Investment Securities” and Note 19 “Fair Values of Assets and Liabilities” for additional information related to the investment portfolio.

Deposits

Total deposits increased $633.3 million, or 13%, in 2017, with $484.4 million of the growth resulting from the acquisition of DCB Financial. Growth was experienced in all deposit categories.

Time deposits of $100 thousand or more had remaining maturities as follows as of the end of each year in the three-year period ended December 31:

	2017				2016				2015
	Amount		%		Amount		%		Amount		%
	(dollars in thousands)
3 months or less	$	47,964	23	%	$	38,366	26	%	$	48,429	31	%
Over 3 months through 6 months	22,101		11		27,371		19		22,946		15
Over 6 months through 12 months	68,174		32		29,013		20		34,974		22
Over 12 months	72,142		34		50,621		35		51,306		32
Total	$	210,381	100	%	$	145,371	100	%	$	157,655	100	%

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Short-Term Borrowings and Long-Term Debt

Short-term borrowings decreased $160.5 million, or 18%, from $867.9 million as of December 31, 2016 to $707.5 million at December 31, 2017. The decline in short-term borrowings is a result of deposits obtained from the DCB Financial acquisition, which provided a lower cost alternative funding source compared to these borrowings. Long-term debt increased $7.0 million, or 9%, from $80.9 million at December 31, 2016 to $87.9 million at December 31, 2017 as a result of the DCB Financial acquisition. For additional information concerning our short-term borrowings, subordinated debentures and other long-term debt, please refer to Note 16 “Short-term Borrowings,” Note 17 “Subordinated Debentures” and Note 18 “Other Long-term Debt” of the Consolidated Financial Statements.

Contractual Obligations and Off-Balance Sheet Arrangements

The table below sets forth our contractual obligations to make future payments as of December 31, 2017. For a more detailed description of each category of obligation, refer to the note in our Consolidated Financial Statements indicated in the table below.

	Footnote Number Reference	1 Year or Less		After 1 But Within 3 Years		After 3 But Within 5 Years		After 5 Years		Total
	(dollars in thousands)
FHLB advances	18	$	607	$	1,287	$	1,389	$	4,878	$	8,161
Subordinated debentures	17	—		—		—		72,167		72,167
Operating leases	13	4,595		7,547		5,580		12,851		30,573
Total contractual obligations		$	5,202	$	8,834	$	6,969	$	89,896	$	110,901

The table above excludes our cash obligations upon maturity of certificates of deposit, which is set forth in Note 15 “Interest-Bearing Deposits” of the Consolidated Financial Statements.

In addition, see Note 12 “Commitments and Letters of Credit” for detail related to our off-balance sheet commitments to extend credit, financial standby letters of credit, performance standby letters of credit and commercial letters of credit as of December 31, 2017. Commitments to extend credit, standby letters of credit and commercial letters of credit do not necessarily represent future cash requirements since it is unknown if the borrower will draw upon these commitments and often these commitments expire without being drawn upon. As of December 31, 2017, a reserve for probable losses of $5.2 million was recorded for unused commitments and letters of credit.

Liquidity

Liquidity refers to our ability to meet the cash flow requirements of depositors and borrowers as well as our operating cash needs with cost-effective funding. Liquidity risk arises from the possibility that we may not be able to meet our financial obligations and operating cash needs or may become overly reliant upon external funding sources. In order to manage this risk, our Board of Directors has established a Liquidity Policy that identifies primary sources of liquidity, establishes procedures for monitoring and measuring liquidity and quantifies minimum liquidity requirements based on limits approved by our Board of Directors. This policy designates our Asset/Liability Committee (“ALCO”) as the body responsible for meeting these objectives. The ALCO, which includes members of executive management, reviews liquidity on a periodic basis and approves significant changes in strategies that affect balance sheet or cash flow positions. Liquidity is centrally managed on a daily basis by our Treasury Department, which monitors it by using such measures as a 30 day liquidity stress analysis, liquidity gap ratios and noncore funding ratios.

We generate funds to meet our cash flow needs primarily through the core deposit base of FCB and the maturity or repayment of loans and other interest-earning assets, including investments. Core deposits are the most stable source of liquidity a bank can have due to the long-term relationship with a deposit customer. The level of deposits during any period is sometimes influenced by factors outside of management’s control, such as the level of short-term and long-term market interest rates and yields offered on competing investments, such as money market mutual funds. Deposits increased $633.3 million, or 13%, during 2017, and comprised 87% of total liabilities at December 31, 2017, as compared to 83% at December 31, 2016. Proceeds from the sale, maturity and redemption of investment securities totaled $343.5 million during 2017 and provided liquidity to fund loans as well as the purchase of additional investment securities. On February 1, 2018, an auction call was successfully completed on PreTSL XIV, a pooled trust preferred security on which other-than-temporary impairment charges were recognized in 2009 and 2010. Based on the outcome of the auction, it is expected that this security will be called at par in the first quarter of 2018. As of December 31, 2017, the security has a par value of $16.0 million and a book value of $13.1 million.

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We also have available unused wholesale sources of liquidity, including overnight federal funds and repurchase agreements, advances from the Federal Home Loan Bank of Pittsburgh, borrowings through the discount window at the Federal Reserve Bank of Cleveland and access to certificates of deposit through brokers. We have increased our borrowing capacity at the Federal Reserve by establishing a Borrower-in-Custody of Collateral arrangement that enables us to pledge certain loans, not being used as collateral at the Federal Home Loan Bank, as collateral for borrowings at the Federal Reserve. At December 31, 2017 our borrowing capacity at the Federal Reserve related to this program was $785.8 million and there were no amounts outstanding. Additionally, as of December 31, 2017, our maximum borrowing capacity at the Federal Home Loan Bank of Pittsburgh was $1.6 billion and as of that date amounts used against this capacity included $0.6 billion in outstanding borrowings.

We participate in the Certificate of Deposit Account Registry Services (“CDARS”) program as part of an ALCO strategy to increase and diversify funding sources. As of December 31, 2017, our maximum borrowing capacity under this program was $1.1 billion and as of that date there was $14.8 million outstanding. We also participate in a reciprocal program which allows our depositors to receive expanded FDIC coverage by placing multiple certificates of deposit at other CDARS member banks. As of December 31, 2017, our outstanding certificates of deposits from this program have an average weighted rate of 0.97% and an average original term of 466 days.

We also have available unused federal funds lines with four correspondent banks. These lines have an aggregate commitment of $195.0 million with no amounts outstanding as of December 31, 2017.

The liquidity needs of First Commonwealth on an unconsolidated basis (the "Parent Company") consist primarily of operating expenses, debt service payments and dividend payments to our stockholders, which totaled $38.3 million for the year ended December 31, 2017, as well as any cash necessary to repurchase our shares, which totaled $1.5 million for the year ended December 31, 2017. The primary source of liquidity for the Parent Company is dividends from subsidiaries. The Parent Company had $72.2 million in junior subordinated debentures and cash and interest-bearing deposits of $16.4 million at December 31, 2017. At the end of 2017, the Parent Company had a $15.0 million short-term, unsecured revolving line of credit with another financial institution. As of December 31, 2017, there were no amounts outstanding under this line. The Parent Company has the ability to enhance its liquidity position by raising capital or incurring debt.

Refer to “Financial Condition” above for additional information concerning our deposits, loan portfolio, investment securities and borrowings.

Market Risk

Market risk refers to potential losses arising from changes in interest rates, foreign exchange rates, equity prices and commodity prices. Our market risk is composed primarily of interest rate risk. Interest rate risk is comprised of repricing risk, basis risk, yield curve risk and options risk. Repricing risk arises from differences in the cash flow or repricing between asset and liability portfolios. Basis risk arises when asset and liability portfolios are related to different market rate indices, which do not always change by the same amount. Yield curve risk arises when asset and liability portfolios are related to different maturities on a given yield curve; when the yield curve changes shape, the risk position is altered. Options risk arises from “embedded options” within asset and liability products as certain borrowers have the option to prepay their loans when rates fall, while certain depositors can redeem or withdraw their deposits early when rates rise.

The process by which we manage our interest rate risk is called asset/liability management. The goals of our asset/liability management are increasing net interest income without taking undue interest rate risk or material loss of net market value of our equity, while maintaining adequate liquidity. Net interest income is increased by growing earning assets and increasing the difference between the rate earned on earning assets and the rate paid on interest-bearing liabilities. Liquidity is measured by the ability to meet both depositors’ and credit customers’ requirements.

We use an asset/liability model to measure our interest rate risk. Interest rate risk measures include earnings simulation and gap analysis. Gap analysis is a static measure that does not incorporate assumptions regarding future events. Gap analysis, while a helpful diagnostic tool, displays cash flows for only a single rate environment. Net interest income simulations explicitly measure the exposure to earnings from changes in market rates of interest. Under simulation analysis, our current financial position is combined with assumptions regarding future business to calculate net interest income under various hypothetical rate scenarios. Our net interest income simulations assume a level balance sheet whereby new volume equals run-off. The ALCO reviews earnings simulations over multiple years under various interest rate scenarios. Reviewing these various measures provides us with a reasonably comprehensive view of our interest rate profile.

The following gap analysis compares the difference between the amount of interest-earning assets and interest-bearing liabilities subject to repricing over a period of time. The ratio of rate sensitive assets to rate sensitive liabilities repricing within a one year period was 0.73 and 0.75 at December 31, 2017 and 2016, respectively. A ratio of less than one indicates a higher

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level of repricing liabilities over repricing assets over the next twelve months. The level of First Commonwealth's ratio is largely driven by the modeling of interest-bearing nonmaturity deposits, which are included in the analysis as repricing within one year.

Following is the gap analysis as of December 31:

	2017
	0-90 Days			91-180 Days			181-365 Days			Cumulative 0-365 Days			Over 1 Year Through 5 Years			Over 5 Years
	(dollars in thousands)
Loans	$	2,662,906		$	214,139		$	359,790		$	3,236,835		$	1,633,236		$	521,478
Investments	79,484			45,983			84,001			209,468			525,391			434,919
Other interest-earning assets	8,668			—			—			8,668			—			—
Total interest-sensitive assets (ISA)	2,751,058			260,122			443,791			3,454,971			2,158,627			956,397
Certificates of deposit	139,920			71,178			165,083			376,181			235,037			3,595
Other deposits	3,549,121			—			—			3,549,121			—			—
Borrowings	779,875			244			495			780,614			4,468			10,302
Total interest-sensitive liabilities (ISL)	4,468,916			71,422			165,578			4,705,916			239,505			13,897
Gap	$	(1,717,858	)	$	188,700		$	278,213		$	(1,250,945	)	$	1,919,122		$	942,500
ISA/ISL	0.62			3.64			2.68			0.73			9.01			68.82
Gap/Total assets	23.50		%	2.58		%	3.81		%	17.12		%	26.26		%	12.90		%

	2016
	0-90 Days			91-180 Days			181-365 Days			Cumulative 0-365 Days			Over 1 Year Through 5 Years			Over 5 Years
	(dollars in thousands)
Loans	$	2,510,367		$	184,386		$	315,397		$	3,010,150		$	1,446,035		$	402,282
Investments	85,756			44,417			89,838			220,011			546,056			406,743
Other interest-earning assets	24,644			—			—			24,644			—			—
Total interest-sensitive assets (ISA)	2,620,767			228,803			405,235			3,254,805			1,992,091			809,025
Certificates of deposit	110,584			92,765			115,949			319,298			268,680			3,854
Other deposits	3,086,791			—			—			3,086,791			—			—
Borrowings	940,254			146			296			940,696			2,584			5,579
Total interest-sensitive liabilities (ISL)	4,137,629			92,911			116,245			4,346,785			271,264			9,433
Gap	$	(1,516,862	)	$	135,892		$	288,990		$	(1,091,980	)	$	1,720,827		$	799,592
ISA/ISL	0.63			2.46			3.49			0.75			7.34			85.77
Gap/Total assets	22.69		%	2.03		%	4.32		%	16.34		%	25.75		%	11.96		%

Gap analysis has limitations due to the static nature of the model that holds volumes and consumer behaviors constant in all economic and interest rate scenarios. A lower level of rate sensitive assets to rate sensitive liabilities repricing in one year could indicate reduced net interest income in a rising interest rate scenario, and conversely, increased net interest income in a declining interest rate scenario. However, the gap analysis incorporates only the level of interest-earning assets and interest-bearing liabilities and not the sensitivity each has to changes in interest rates. The impact of the sensitivity to changes in interest rates is provided in the table below the gap analysis.

42

The following table presents an analysis of the potential sensitivity of our annual net interest income to gradual changes in interest rates over a 12 month time frame as compared with net interest income if rates remained unchanged and there are no changes in balance sheet categories.

	Net interest income change (12 months)
	-200			-100			+100			+200
	(dollars in thousands)
December 31, 2017 ($)	$	(15,810	)	$	(6,181	)	$	5,856		$	11,315
December 31, 2017 (%)	(6.51		)%	(2.55		)%	2.41		%	4.66		%
December 31, 2016 ($)	$	(11,180	)	$	(5,495	)	$	4,643		$	9,027
December 31, 2016 (%)	(5.41		)%	(2.66		)%	2.25		%	4.37		%

The following table represents the potential sensitivity of our annual net interest income to immediate changes in interest rates versus if rates remained unchanged and there are no changes in balance sheet categories.

	Net interest income change (12 months)
	-200			-100			+100			+200
	(dollars in thousands)
December 31, 2017 ($)	$	(33,734	)	$	(16,356	)	$	14,427		$	27,815
December 31, 2017 (%)	(13.90		)%	(6.74		)%	5.94		%	11.46		%
December 31, 2016 ($)	$	(17,526	)	$	(9,132	)	$	8,379		$	16,286
December 31, 2016 (%)	(8.48		)%	(4.42		)%	4.06		%	7.88		%

The analysis and model used to quantify the sensitivity of our net interest income becomes less meaningful in a decreasing 200 basis point scenario given the current interest rate environment. Results of the 100 and 200 basis point interest rate decline scenario are affected by the fact that many of our interest-bearing liabilities are at rates below 1%, with an assumed floor of zero in the model. For the years 2017 and 2016, the cost of our interest-bearing liabilities averaged 0.44% and 0.39%, respectively, and the yield on our average interest-earning assets, on a fully taxable equivalent basis, averaged 3.90% and 3.63%, respectively.

The ALCO is responsible for the identification and management of interest rate risk exposure. As such, the ALCO continuously evaluates strategies to manage our exposure to interest rate fluctuations.

In 2015 and 2014, the Company entered into cash flow interest rate swaps in which we extended the duration of $150.0 million of the $1.3 billion LIBOR based loans in our loan portfolio at that time into fixed interest rates for a period of three or four years. These swaps added approximately two basis points of protection to the net interest margin as a hedge against a prolonged low-rate environment. Please refer to Note 8, "Derivatives," for additional information on interest rate swaps.

Asset/liability models require that certain assumptions be made, such as prepayment rates on earning assets and the impact of pricing on non-maturity deposits, which may differ from actual experience. These business assumptions are based upon our experience, business plans and published industry experience. While management believes such assumptions to be reasonable, there can be no assurance that modeled results will approximate actual results.

Credit Risk

First Commonwealth maintains an allowance for credit losses at a level deemed sufficient for losses inherent in the loan portfolio at the date of each statement of financial condition. Management reviews the adequacy of the allowance on a quarterly basis to ensure that the provision for credit losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses.

First Commonwealth’s methodology for assessing the appropriateness of the allowance for credit losses consists of several key elements. These elements include an assessment of individual impaired loans with a balance greater than $0.1 million, loss experience trends and other relevant factors.

First Commonwealth also maintains a reserve for unfunded loan commitments and letters of credit based upon credit risk and probability of funding. The reserve totaled $5.2 million at December 31, 2017 and is classified in “Other liabilities” on the Consolidated Statements of Financial Condition.

43

Nonperforming loans include nonaccrual loans and loans classified as troubled debt restructurings. Nonaccrual loans represent loans on which interest accruals have been discontinued. Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the deteriorating financial position of the borrower, who could not obtain comparable terms from alternate financing sources. In 2017, 41 loans totaling $11.1 million were identified as troubled debt restructurings, resulting in specific reserves of $0.6 million.

We discontinue interest accruals on a loan when, based on current information and events, it is probable that we will be unable to fully collect principal or interest due according to the contractual terms of the loan. A loan is also placed in nonaccrual status when, based on regulatory definitions, the loan is maintained on a “cash basis” due to the weakened financial condition of the borrower. Generally, loans 90 days or more past due are placed on nonaccrual status, except for consumer loans which are placed on nonaccrual status at 150 days past due.

Nonperforming loans are closely monitored on an ongoing basis as part of our loan review and work-out process. The probable risk of loss on these loans is evaluated by comparing the loan balance to the estimated fair value of any underlying collateral or the present value of projected future cash flows. Losses or specifically assigned allowance for credit losses are recognized where appropriate.

The allowance for credit losses was $48.3 million at December 31, 2017 or 0.89% of loans outstanding, compared to $50.2 million or 1.03% of loans outstanding at December 31, 2016. Credit measures as of December 31, 2017 compared to December 31, 2016 reflect a decrease in the level of criticized loans of $10.0 million from $134.4 million at December 31, 2016 to $124.4 million at December 31, 2017. Classified assets decreased $19.7 million from $92.7 million at December 31, 2016 to $73.0 million at December 31, 2017. The decline is the result of an upgrade of a $9.2 million loan for one borrower and the payoff of $8.5 million in nonaccrual loans as previously noted. Delinquency on accruing loans decreased $0.5 million, or 4%, while the level of nonperforming loans increased $0.4 million for the same period.

The allowance for credit losses as a percentage of nonperforming loans was 114.3% at December 31, 2017 and 120.0% as of December 31, 2016. The allowance for credit losses includes specific allocations of $3.7 million related to nonperforming loans covering 9% of the total nonperforming balance at December 31, 2017 and specific allocations of $3.1 million covering 8% of the total nonperforming balance at December 31, 2016. The amount of allowance related to nonperforming loans was determined by using estimated fair values obtained from current appraisals and updated discounted cash flow analyses.

Management believes that the allowance for credit losses is at a level that is sufficient to absorb losses incurred in the loan portfolio at December 31, 2017.

The following table provides information on net charge-offs and nonperforming loans by loan category:

	For the Period Ended December 31, 2017							As of December 31, 2017
	Net Charge-offs			% of Total Net Charge- offs		Net Charge-offs as a % of Average Loans		Nonperforming Loans		% of Total Nonperforming Loans		Nonperforming Loans as a % of Total Loans
	(dollars in thousands)
Commercial, financial, agricultural and other	$	2,733		39.19	%	0.05	%	$	22,850	54.10	%	0.42	%
Real estate construction	(470		)	(6.74	)	(0.01	)	—		—		—
Residential real estate	916			13.13		0.02		11,840		28.03		0.22
Commercial real estate	62			0.89		—		7,186		17.01		0.13
Loans to individuals	3,733			53.53		0.07		364		0.86		0.01
Total loans, net of unearned income	$	6,974		100.00	%	0.13	%	$	42,240	100.00	%	0.78	%

As the above table illustrates, commercial, financial, agricultural loans and residential real estate loans were the most significant portions of the nonperforming loans as of December 31, 2017. See discussions related to the provision for credit losses and loans for more information.

44

Results of Operations—2016 Compared to 2015

Summary of 2016 Results

Net income for 2016 was $59.6 million, or $0.67 per diluted share, as compared to a net income of $50.1 million, or $0.56 per diluted share, in 2015. Net income in 2016 was positively impacted by an increase in net interest income of $10.6 million, offset by decreases in noninterest expense of $3.9 million and noninterest income of $3.3 million.

Our return on average equity was 8.02% and our return on average assets was 0.89% for 2016, compared to 6.98% and 0.78%, respectively, for 2015.

Average diluted shares for the year 2016 were 1% less than the comparable period in 2015 primarily due to the common stock buyback program authorized during 2015.

Net interest income, on a fully taxable equivalent basis, for 2016 was $10.9 million, or 6%, higher than 2015, primarily due to growth in interest earning assets as well as growth in rates on interest earning assets. Positively affecting net interest income in 2016 was a $116.2 million increase in average net free funds. Average net free funds are the excess of demand deposits, other noninterest-bearing liabilities and shareholders’ equity over nonearning assets. The net interest margin, on a fully taxable equivalent basis, was 3.32% in 2016 compared to 3.28% in 2015.

During the year-ended December 31, 2016, growth in both the level of interest-earning assets and the rates on those assets positively impacted the net interest margin. Yields and spreads on new loan volumes in 2016 exceeded runoff levels, specifically for variable and adjustable rate commercial loans, home equity loans and indirect auto loans. Average earning assets increased $257.7 million, or 4%, compared to the comparable period in 2015.

The taxable equivalent yield on interest-earning assets was 3.63% for the year-ended December 31, 2016, an increase of 8 basis points from the 3.55% yield for the same period in 2015. This increase can be attributed to higher replacement yields on loan portfolio runoff and maturities as a result of improvements in pricing spreads. Additionally, the investment portfolio yield increased by 11 basis points. This increase can be attributed to the runoff or sale of lower yielding U.S. Agency securities which were replaced with higher yielding investment securities. Reductions in the cost of interest-bearing liabilities partially offset the impact of higher yields on interest-earning assets. The cost of interest-bearing liabilities was 0.39% for the year-ended December 31, 2016, compared to 0.34% for the same period in 2015.

Comparing the year-ended December 31, 2016 with the same period in 2015, changes in interest rates negatively impacted net interest income by $0.5 million. The higher yield on interest-earning assets favorably impacted net interest income by $3.5 million, while a change in the mix of interest-bearing liabilities and an increase in short-term borrowing rates had a negative impact of $4.0 million on net interest income. The growth in net interest income for the year-ended December 31, 2016, can be primarily attributed to growth in the loan portfolio and changes in the mix of our investment portfolio.

While changes in rates had a slight negative impact on the net interest margin, increases in average interest-earning assets more than offset the effect on net interest income. Changes in the volume of interest-earning assets and interest-bearing liabilities positively impacted net interest income by $11.5 million in the year ended December 31, 2016 compared to the same period in 2015. Higher levels of interest-earning assets resulted in an increase of $10.4 million in interest income, while reductions in time deposits and long-term borrowings, partially offset by increased short-term borrowings, decreased interest expense by $1.0 million.

Noninterest income, excluding net securities gains (losses), gains on sale of assets and derivative mark to market, increased $0.8 million, or 1%, in 2016, due to a $1.5 million increase in swap fee income that resulted from growth in interest rate swaps entered into by our commercial loan customers.

Total noninterest income increased $3.3 million, or 5%, in 2016 in comparison to the year ended 2015. The most notable change includes a $1.7 million increase in gain on the sale of mortgage loans due to continued growth in mortgage loan originations since the Company reentered the secondary mortgage market in 2014. Net securities gains (losses) increased $0.8 million, primarily due to the early redemption in 2016 of one of our pooled trust preferred securities.

Total noninterest expense for the year 2016 decreased $3.9 million in comparison to the year 2015. Contributing to the 2016 decrease is a $2.0 million decline in salaries and employee benefits, primarily due to $2.1 million in one-time severance charges recognized in 2015 as a result of the realignment of our consumer banking area.

Other operating expense decreased $1.4 million for the year 2016 compared to 2015, primarily due to a $1.7 million decline in expense related to the reserve for unfunded loan commitments. Pennsylvania shares tax expense decreased $0.9 million in 2016 compared to 2015 due to a $0.7 million settlement paid in 2015 for a disputed tax assessment. Loss on the sale or write-down of assets decreased $2.0 million for the year 2016 compared to 2015. The loss in 2015 includes $1.5 million in write-downs on

45

OREO properties as a result of updated appraisals obtained on properties for two commercial loan relationships and $0.9 million in write-downs related to the disposition of four branch offices that were closed or relocated due to cost or other market opportunities. Offsetting these decreases is a $1.3 million increase in data processing expense related to the issuance of chip debit cards in 2016.

ITEM 7A.    Quantitative and Qualitative Disclosures About Market Risk

Information appearing in Item 7 of this report under the caption “Market Risk” is incorporated herein by reference in response to this item.

46

ITEM 8.    Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	December 31,
	2017			2016
	(dollars in thousands, except share data)
Assets
Cash and due from banks	$	98,624		$	91,033
Interest-bearing bank deposits	8,668			24,644
Securities available for sale, at fair value	731,358			778,612
Securities held to maturity, at amortized cost, (Fair value $418,249 at December 31, 2017 and $368,618 at December 31, 2016)	422,096			372,513
Other investments	29,837			36,498
Loans held for sale	14,850			7,052
Loans:
Portfolio loans	5,407,376			4,879,347
Allowance for credit losses	(48,298		)	(50,185		)
Net loans	5,359,078			4,829,162
Premises and equipment, net	81,339			67,534
Other real estate owned	2,765			6,805
Goodwill	255,353			186,483
Amortizing intangibles, net	15,007			12,013
Bank owned life insurance	212,099			187,021
Other assets	77,465			84,648
Total assets	$	7,308,539		$	6,684,018
Liabilities
Deposits (all domestic):
Noninterest-bearing	$	1,416,771		$	1,268,786
Interest-bearing	4,163,934			3,678,622
Total deposits	5,580,705			4,947,408
Short-term borrowings	707,466			867,943
Subordinated debentures	72,167			72,167
Other long-term debt	8,161			8,749
Capital lease obligation	7,590			—
Total long-term debt	87,918			80,916
Other liabilities	44,323			37,822
Total liabilities	6,420,412			5,934,089
Shareholders’ Equity
Preferred stock, $1 par value per share, 3,000,000 shares authorized, none issued	—			—
Common stock, $1 par value per share, 200,000,000 shares authorized; 113,914,902 and 105,563,455 shares issued as of December 31, 2017 and 2016, respectively; and 97,456,478 and 89,007,077 shares outstanding at December 31, 2017 and 2016, respectively	113,915			105,563
Additional paid-in capital	470,123			366,426
Retained earnings	437,416			412,764
Accumulated other comprehensive (loss) income, net	(6,173		)	(7,027		)
Treasury stock (16,458,424 and 16,556,378 shares at December 31, 2017 and 2016, respectively)	(127,154		)	(127,797		)
Total shareholders’ equity	888,127			749,929
Total liabilities and shareholders’ equity	$	7,308,539		$	6,684,018

The accompanying notes are an integral part of these Consolidated Financial Statements.

47

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

	Years Ended December 31,
	2017			2016		2015
	(dollars in thousands, except share data)
Interest Income
Interest and fees on loans	$	218,530		$	185,344	$	172,819
Interest and dividends on investments:
Taxable interest	28,608			27,919		26,807
Interest exempt from federal income taxes	1,622			1,498		997
Dividends	1,669			2,826		3,434
Interest on bank deposits	121			27		14
Total interest income	250,550			217,614		204,071
Interest Expense
Interest on deposits	9,415			7,523		7,474
Interest on short-term borrowings	8,799			8,076		5,018
Interest on subordinated debentures	3,000			2,635		2,329
Interest on other long-term debt	323			345		774
Interest on capital lease obligation	233			—		—
Total interest expense	21,770			18,579		15,595
Net Interest Income	228,780			199,035		188,476
Provision for credit losses	5,087			18,480		14,948
Net Interest Income after Provision for Credit Losses	223,693			180,555		173,528
Noninterest Income
Net securities gains (losses)	5,040			617		(153		)
Trust income	7,098			5,366		5,834
Service charges on deposit accounts	18,579			15,869		15,319
Insurance and retail brokerage commissions	8,807			7,964		8,522
Income from bank owned life insurance	5,699			5,381		5,412
Gain on sale of mortgage loans	5,366			4,086		2,421
Gain on sale of other loans and assets	1,753			1,411		1,855
Card related interchange income	18,780			14,955		14,501
Derivative mark to market	(473		)	219		(274		)
Swap fee income	2,005			2,359		847
Other income	7,677			6,372		7,041
Total noninterest income	80,331			64,599		61,325
Noninterest Expense
Salaries and employee benefits	103,714			87,125		89,161
Net occupancy	15,648			13,150		13,712
Furniture and equipment	13,508			11,624		10,737
Data processing	9,090			7,429		6,123
Advertising and promotion	3,786			2,601		2,638
Pennsylvania shares tax	4,209			3,825		4,693
Intangible amortization	3,081			547		605
Collection and repossession	1,905			2,250		2,826
Other professional fees and services	4,761			3,915		4,034
FDIC insurance	3,210			3,903		4,014
Loss on sale or write-down of assets	1,834			1,155		3,112
Litigation and operational losses	2,050			1,420		2,119
Merger and acquisition related	10,213			3,173		922
Other operating expenses	23,289			17,808		19,178
Total noninterest expense	200,298			159,925		163,874
Income before income taxes	103,726			85,229		70,979
Income tax provision	48,561			25,639		20,836
Net Income	$	55,165		$	59,590	$	50,143
Average Shares Outstanding	95,220,056			88,851,573		89,356,767
Average Shares Outstanding Assuming Dilution	95,331,037			88,851,573		89,356,767
Per Share Data:
Basic Earnings Per Share	$	0.58		$	0.67	$	0.56
Diluted Earnings Per Share	$	0.58		$	0.67	$	0.56
Cash Dividends Declared per Common Share	$	0.32		$	0.28	$	0.28

The accompanying notes are an integral part of these Consolidated Financial Statements.

48

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Years Ended December 31,
	2017			2016			2015
	(dollars in thousands)
Net Income	$	55,165		$	59,590		$	50,143
Other comprehensive income (loss), before tax expense (benefit):
Unrealized holding gains (losses) on securities arising during the period	7,023			(6,304		)	2,798
Less: reclassification adjustment for (gains) losses on securities included in net income	(5,040		)	(617		)	153
Unrealized (losses) gains on derivatives:
Unrealized holding (losses) gains on derivatives arising during the period	(901		)	(479		)	450
Reclassification adjustment for losses on derivatives included in net income	119			(70		)	(49		)
Unrealized gains (losses) for postretirement obligation:
Net gain (loss)	94			331			(102		)
Total other comprehensive income (loss), before income tax expense (benefit)	1,295			(7,139		)	3,250
Income tax expense (benefit) related to items of other comprehensive income (loss)	441			(2,498		)	1,137
Comprehensive Income	$	56,019		$	54,949		$	52,256

The accompanying notes are an integral part of these Consolidated Financial Statements.

49

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

	Shares Outstanding		Common Stock		Additional Paid-in- Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss), net			Treasury Stock			Total Shareholders’ Equity
	(dollars in thousands, except per share data)
Balance at December 31, 2016	89,007,077		$	105,563	$	366,426	$	412,764		$	(7,027	)	$	(127,797	)	$	749,929
Net income							55,165									55,165
Total other comprehensive income										854						854
Cash dividends declared ($0.32 per share)							(30,513		)							(30,513		)
Treasury stock acquired	(104,257	)											(1,458		)	(1,458		)
Treasury stock reissued	181,211				1,170		—						1,387			2,557
Restricted stock	21,000		—		138		—						714			852
Common stock issued	8,351,447		8,352		102,389											110,741
Balance at December 31, 2017	97,456,478		$	113,915	$	470,123	$	437,416		$	(6,173	)	$	(127,154	)	$	888,127

	Shares Outstanding		Common Stock		Additional Paid-in- Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss), net			Treasury Stock			Total Shareholders’ Equity
	(dollars in thousands, except per share data)
Balance at December 31, 2015	88,961,268		$	105,563	$	365,981	$	378,081		$	(2,386	)	$	(127,693	)	$	719,546
Net income							59,590									59,590
Total other comprehensive loss										(4,641		)				(4,641		)
Cash dividends declared ($0.28 per share)							(24,907		)							(24,907		)
Treasury stock acquired	(98,687	)											(864		)	(864		)
Treasury stock reissued	23,148				39		—						177			216
Restricted stock	121,348		—		406		—						583			989
Balance at December 31, 2016	89,007,077		$	105,563	$	366,426	$	412,764		$	(7,027	)	$	(127,797	)	$	749,929

	Shares Outstanding		Common Stock		Additional Paid-in- Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss), net			Treasury Stock			Total Shareholders’ Equity
	(dollars in thousands, except per share data)
Balance at December 31, 2014	91,723,028		$	105,563	$	365,615	$	353,027		$	(4,499	)	$	(103,561	)	$	716,145
Net income							50,143									50,143
Total other comprehensive income										2,113						2,113
Cash dividends declared ($0.28 per share)							(25,089		)							(25,089		)
Treasury stock acquired	(2,918,066	)											(25,383		)	(25,383		)
Treasury stock reissued	20,936				32		—						160			192
Restricted stock	135,370		—		334		—						1,091			1,425
Balance at December 31, 2015	88,961,268		$	105,563	$	365,981	$	378,081		$	(2,386	)	$	(127,693	)	$	719,546

The accompanying notes are an integral part of these Consolidated Financial Statements.

50

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2017			2016			2015
	(dollars in thousands)
Operating Activities
Net income	$	55,165		$	59,590		$	50,143
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	5,087			18,480			14,948
Deferred tax expense	20,825			5,713			12,653
Depreciation and amortization	8,997			7,116			7,640
Net gains on securities and other assets	(9,942		)	(5,257		)	(729		)
Net amortization of premiums and discounts on securities	3,532			4,524			2,793
Income from increase in cash surrender value of bank owned life insurance	(5,699		)	(5,325		)	(5,412		)
Mortgage loans originated for sale	(164,212		)	(133,278		)	(86,576		)
Proceeds from sale of mortgage loans	163,125			136,037			85,718
Increase in interest receivable	(1,314		)	(577		)	(41		)
Increase (decrease) in interest payable	426			(272		)	(103		)
Decrease (increase) in income taxes payable	1,318			(589		)	(354		)
Other—net	10,997			3,111			(7,929		)
Net cash provided by operating activities	88,305			89,273			72,751
Investing Activities
Transactions with securities held to maturity:
Proceeds from maturities and redemptions	51,239			54,057			9,358
Purchases	(102,420		)	(45,188		)	(380,877		)
Transactions with securities available for sale:
Proceeds from sales	143,660			55,744			88,054
Proceeds from maturities and redemptions	148,561			168,237			373,228
Purchases	(150,892		)	(128,916		)	(24,150		)
Purchases of FHLB stock	(45,301		)	(37,326		)	(65,605		)
Proceeds from the redemption of FHLB stock	55,212			63,780			48,029
Proceeds from bank owned life insurance	898			467			378
Proceeds from the sale of loans	14,807			18,612			3,018
Proceeds from sales of other assets	5,568			7,765			6,407
Acquisition, net of cash acquired	3,188			479,469			(3,533		)
Net increase in loans	(165,726		)	(135,436		)	(191,853		)
Purchase of other assets	(1,213		)	(430		)	—
Purchases of premises and equipment	(10,378		)	(7,061		)	(4,887		)
Net cash (used in) provided by investing activities	(52,797		)	493,774			(142,433		)
Financing Activities
Net decrease in federal funds purchased	—			(4,000		)	(5,000		)
Net (decrease) increase in other short-term borrowings	(160,477		)	(638,882		)	409,949
Net increase (decrease) in deposits	149,175			132,180			(209,928		)
Repayments of other long-term debt	(588		)	(565		)	(80,145		)
Repayments of capital lease obligations	(260		)	—			—
Dividends paid	(30,513		)	(24,907		)	(25,089		)
Proceeds from reissuance of treasury stock	228			216			192
Purchase of treasury stock	(1,458		)	(864		)	(25,383		)
Net cash (used in) provided by financing activities	(43,893		)	(536,822		)	64,596
Net (decrease) increase in cash and cash equivalents	(8,385		)	46,225			(5,086		)
Cash and cash equivalents at January 1	115,677			69,452			74,538
Cash and cash equivalents at December 31	$	107,292		$	115,677		$	69,452

The accompanying notes are an integral part of these Consolidated Financial Statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1—Statement of Accounting Policies

General

The following summary of accounting and reporting policies is presented to aid the reader in obtaining a better understanding of the consolidated financial statements of First Commonwealth Financial Corporation and its subsidiaries (“First Commonwealth”) contained in this report.

The financial information is presented in accordance with generally accepted accounting principles and general practice for financial institutions in the United States of America. In preparing financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. In addition, these estimates and assumptions affect revenues and expenses in the financial statements and as such, actual results could differ from those estimates.

Through its subsidiaries, which include a commercial bank and an insurance agency, First Commonwealth provides a full range of loan, deposit, trust, insurance and personal financial planning services primarily to individuals and small to middle market businesses in fifteen counties in central and western Pennsylvania as well as in central and northern Ohio. First Commonwealth has determined that it has one business segment.

First Commonwealth is subject to regulations of certain state and federal agencies. These regulatory agencies periodically examine First Commonwealth for adherence to laws and regulations.

Basis of Presentation

The accompanying Consolidated Financial Statements include the accounts of First Commonwealth previously defined above. All material intercompany transactions have been eliminated in consolidation.

Equity investments of less than a majority but at least 20% ownership are accounted for by the equity method and classified as “Other assets.” Earnings on these investments are reflected in “Other income” on the Consolidated Statements of Income, as appropriate, in the period earned.

Securities

Debt securities that First Commonwealth has the positive intent and ability to hold to maturity are classified as securities held to maturity and are reported at amortized cost adjusted for amortization of premium and accretion of discount on a level yield basis. Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are to be classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as securities available for sale and are reported at fair value, with unrealized gains and losses that are not related to impairment excluded from earnings and reported as a component of other comprehensive income, which is included in shareholders’ equity, net of deferred taxes.

First Commonwealth has securities classified as held to maturity and available for sale and does not engage in trading activities. 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 the equity securities.

First Commonwealth conducts a comprehensive review of the investment portfolio on a quarterly basis to determine whether other-than-temporary impairment has occurred. Issuer-specific securities whose market values have fallen below their book values are initially selected for more in-depth analysis based on the percentage decline in value and duration of the decline. Issuer-specific securities include obligations of U.S. Government agencies and sponsored enterprises, single issue trust preferred securities, corporate debentures and obligations of states and political subdivisions. Further analysis of these securities includes a review of research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, impact of interest rate changes and any other relevant information pertaining to the affected security. Pooled trust preferred collateralized debt obligations are measured by evaluating all relevant credit and structural aspects, determining appropriate performance assumptions and performing a discounted cash flow analysis. This evaluation includes detailed credit, performance and structural evaluations for each piece of collateral. Other factors in the pooled trust preferred collateralized debt obligations valuation include terms of the structure, the cash flow waterfall (for both interest and principal), the over collateralization and interest coverage tests and events of default/liquidation. Based on this review, a determination is made on a case by case basis as to a potential impairment. Declines in the fair value of individual securities below their cost that are not expected to be recovered will result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as impairment losses.

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Mortgage Loans Held for Sale

Certain residential mortgage loans are originated for sale in the secondary mortgage loan market with the majority sold with servicing rights released. These loans are classified as loans held for sale and are carried at the lower of cost or estimated market value on an aggregate basis. Market value is determined on the basis of rates obtained in the respective secondary market for the type of loan held for sale. Loans are generally sold at a premium or discount from the carrying amount of the loan. Such premium or discount is recognized at the date of sale. Gain or loss on the sale of loans is recorded in non-interest income at the time consideration is received and all other criteria for sales treatment have been met.

Loans

Loans are carried at the principal amount outstanding. Interest is accrued as earned. Loans held for sale are carried at the lower of cost or fair value determined on an individual basis.

First Commonwealth considers a loan to be past due and still accruing interest when payment of interest or principal is contractually past due but the loan is both well secured and in the process of collection. For installment, mortgage, term and other loans with amortizing payments that are scheduled monthly, 90 days past due is reached when four monthly payments are due and unpaid. For demand, time and other multi-payment obligations with payments scheduled other than monthly, delinquency status is calculated using number of days instead of number of payments. Revolving credit loans, including personal credit lines and home equity lines, are considered to be 90 days past due when the borrower has not made the minimum payment for four monthly cycles.

A loan is placed in nonaccrual status when, based on current information and events, it is probable that First Commonwealth will be unable to fully collect principal or interest due according to the contractual terms of the loan. A loan is also placed in nonaccrual status when, based on regulatory definitions, the loan is maintained on a “cash basis” due to the weakened financial condition of the borrower. When a determination is made to place a loan in nonaccrual status, all accrued and unpaid interest is reversed. Nonaccrual loans are restored to accrual status when, based on a sustained period of repayment by the borrower in accordance with the contractual terms of the loan, First Commonwealth expects repayment of the remaining contractual principal and interest or when the loan otherwise becomes well-secured and in the process of collection.

First Commonwealth considers a loan to be a troubled debt restructured loan when the loan terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources.

A loan is considered to be impaired when, based on current information and events, it is probable that First Commonwealth will be unable to collect principal or interest that is due in accordance with contractual terms of the loan. Impaired loans include nonaccrual loans and troubled debt restructured loans. Loan impairment is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent.

For loans other than those that First Commonwealth expects repayment through liquidation of the collateral, when the remaining recorded investment in the impaired loan is less than or equal to the present value of the expected cash flows, income is applied as a reduction to loan principal rather than interest income.

Loans deemed uncollectible are charged off through the allowance for credit losses. Factors considered in assessing ultimate collectability include past due status, financial condition of the borrower, collateral values and debt covenants including secondary sources of repayment by guarantors. Payments received on previously charged off loans are recorded as recoveries in the allowance for credit losses.

Acquired loans are recorded at estimated fair value on the date of acquisition with no carryover of the related allowance for credit losses. The fair value of acquired loans is determined by estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The estimated fair value considers factors such as loan term, internal risk rating, delinquency status, prepayment rates, estimated value of the underlying collateral and the current interest rate environment.

Loan Fees

Loan origination and commitment fees, net of associated direct costs, are deferred and the net amount is amortized as an adjustment to the related loan yield on the interest method, generally over the contractual life of the related loans or commitments.

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Other Real Estate Owned

Real estate, other than bank premises, is recorded at fair value less estimated selling costs at the time of acquisition.   After that time, other real estate is carried at the lower of cost or fair value less estimated costs to sell. Fair value is determined based on an independent appraisal. Expenses related to holding the property and rental income earned on the property are generally reflected in earnings in the current period. Depreciation is not recorded on the other real estate owned properties.

Allowance for Credit Losses

First Commonwealth maintains an allowance for credit losses at a level deemed sufficient to absorb losses that are inherent in the loan portfolio. First Commonwealth’s management determines and reviews with the Board of Directors the adequacy of the allowance on a quarterly basis to ensure that the provision for credit losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. First Commonwealth’s methodology for assessing the appropriateness of the allowance for credit losses consists of several key elements. These elements include an assessment of individual problem loans, delinquency and loss experience trends and other relevant factors, all of which may be susceptible to significant changes.

The major loan classifications used in the allowance for credit losses calculation include pass, other assets especially mentioned (“OAEM”), substandard and doubtful. Additional information related to these credit quality categories is provided in Note 11, "Loans and Allowance for Credit Losses."

First Commonwealth consistently applies the following comprehensive methodology and procedure for determining the allowance for credit losses.

All impaired credits in excess of $100 thousand are individually reviewed quarterly. A specific reserve is established for impaired loans in an amount equal to the total amount of probable unconfirmed losses for the impaired loans that are reviewed. Based on this reserve as a percentage of reviewed loan balances, a reserve is also established for the impaired loan balances that are not individually reviewed.

The allowance calculation uses net historical charge-off trends to estimate probable unconfirmed losses for each loan category. A multiplier known as the emergence factor is applied to the historical loss rates for non-criticized loans. The emergence factor is calculated by loan category and represents the average time period from when a loss is incurred until the bank experiences a charge-off against the loan. Before applying the adjusted historical loss experience percentages, loan balances are reduced by the portion of the loan balances which are subject to guarantee by a government agency.

An additional component of the allowance is determined by management based on a qualitative analysis of certain factors related to portfolio risks and economic conditions. Factors considered by management include employment trends, macroeconomic trends, commercial real estate trends, lending practices, ability and experience of the credit staff, the overall lending environment and external factors such as the regulatory environment and competition. Portfolio risks include unusual changes or recent trends in specific portfolios such as unexpected changes in the trends or levels of delinquency. No matter how detailed an analysis of potential credit losses is performed, these estimates are inherently imprecise. Management must make estimates using assumptions and information that is often subjective and changes rapidly.

Loans acquired with evidence of credit deterioration were evaluated and not considered to be significant. The premium or discount estimated through the loan fair value calculation is recognized into interest income on a level yield or straight-line basis over the remaining contractual life of the loans. Additional credit deterioration on acquired loans, in excess of the original credit discount embedded in the fair value determination on the date of acquisition, will be recognized in the allowance for credit losses through the provision for loan losses.

Allowance for Off-Balance Sheet Credit Exposures

First Commonwealth maintains an allowance for off-balance sheet credit exposure at a level deemed sufficient to absorb losses that are inherent to off-balance sheet credit risk. Management determines the adequacy of the allowance on a quarterly basis, charging the provision against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. The Company’s methodology for assessing the appropriateness of the allowance for off-balance sheet credit exposure consists of analysis of historical usage trends as well as loss history and probability of default rates related to the off-balance sheet category. The calculation begins with historical usage trends related to lines of credit as well as letters of credit and then utilizes those figures to determine the probable usage of available lines. These values are then adjusted by a determined probability of default as well as a loss given default. This amount is adjusted quarterly and reported as part of other operating expenses on the Consolidated Statements of Income.

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Bank Owned Life Insurance

First Commonwealth and the banks that First Commonwealth has acquired have purchased insurance on the lives of certain groups of employees. The policies accumulate asset values to meet future liabilities, including the payment of employee benefits such as health care. Increases in the cash surrender value are recorded as non-interest income in the Consolidated Statements of Income. Under some of these policies, the beneficiaries receive a portion of the death benefit. The net present value of the future death benefits scheduled to be paid to the beneficiaries was $3.9 million and $3.3 million as of December 31, 2017 and 2016, respectively, and is reflected in "Other Liabilities" on the Consolidated Statements of Financial Condition.

Premises and Equipment

Premises and equipment are carried at cost less accumulated depreciation on First Commonwealth’s Consolidated Statements of Financial Condition. Depreciation is computed on the straight-line and accelerated methods over the estimated useful life of the asset. A straight-line depreciation method was used for substantially all furniture and equipment. The straight-line depreciation method was used for buildings and improvements. Charges for maintenance and repairs are expensed as incurred. Leasehold improvements are expensed over the term of the lease or the estimated useful life of the improvement, whichever is shorter.

Software costs are amortized on a straight-line basis over a period not to exceed seven years.

Business Combinations

Business combinations are accounted for by using the acquisition method of accounting. Under the acquisition method, identifiable assets acquired and liabilities assumed at the acquisition date are measured at their fair values as of that date, and are recognized separately from goodwill. The difference between the purchase price and the fair value of the net assets acquired is recorded as goodwill. Results of operations of the acquired entities are included in the consolidated statement of income from the date of acquisition. Acquisition costs are expensed when incurred.

Goodwill

Intangible assets resulting from acquisitions under the purchase method of accounting consist of goodwill and other intangible assets (see “Other Intangible Assets” section below). Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. First Commonwealth reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if our fair value has fallen below carrying value.

Other Intangible Assets

Other intangible assets consist of core deposits and customer lists obtained through acquisitions. Core deposit intangibles are amortized over their estimated lives using the present value of the benefit of the core deposits and straight-line methods of amortization. Customer list intangibles are amortized over the expected lives using expected cash flows based on retention of the customer base. These intangibles are evaluated for impairment on an annual basis and when events or changes in circumstances indicate that the carrying amount may not be recoverable.

Accounting for the Impairment of Long-Lived Assets

First Commonwealth reviews long-lived assets, such as premises and equipment and intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These changes in circumstances may include a significant decrease in the market value of an asset or the extent or manner in which an asset is used. If there is an indication that the carrying amount of an asset may not be recoverable, future undiscounted cash flows expected to result from the use of the asset are estimated. If the sum of the expected cash flows is less than the carrying value of the asset, a loss is recognized for the difference between the carrying value and fair value of the asset. Long-lived assets classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. Depreciation or amortization is discontinued on long-lived assets classified as held for sale.

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Income Taxes

First Commonwealth records taxes in accordance with the asset and liability method of FASB ASC Topic 740, “Income Taxes,” whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases given the provisions of the enacted tax laws. Deferred tax assets are reduced, if necessary, by the amount of such benefits that are more likely than not expected to be realized based upon available evidence. In accordance with FASB ASC Topic 740, interest or penalties incurred for taxes will be recorded as a component of noninterest expense.

Comprehensive Income Disclosures

“Other Comprehensive Income” (comprehensive income, excluding net income) includes the after-tax effect of changes in unrealized holding gains and losses on available-for-sale securities, changes in the funded status of defined benefit postretirement plans and changes in the fair value of the effective portion of cash flow hedges. Comprehensive income is reported in the accompanying Consolidated Statements of Comprehensive Income, net of tax.

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and interest-bearing bank deposits. Generally, federal funds are sold for one-day periods.

Derivatives and Hedging Activities

First Commonwealth accounts for derivative instruments and hedging activities in accordance with FASB ASC Topic 815, “Derivatives and Hedging.” All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities, and appropriate documentation is maintained to support the final determination. First Commonwealth recognizes all derivatives as either assets or liabilities on the Consolidated Statements of Financial Condition and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in OCI. When the cash flows associated with the hedged item are realized, the gain or loss included in OCI is recognized in the Consolidated Statement of Income.

When First Commonwealth purchases a portion of a commercial loan that has an existing interest rate swap, it enters a Risk Participation Agreement with the counterparty and assumes the credit risk of the loan customer related to the swap. Any fee paid to First Commonwealth as a result of the risk participation agreement is offset by credit risk of the counterparties and is recognized in the income statement. Credit risk on the risk participation agreements is determined after considering the risk rating, probability of default and loss given default of the counterparties.

Management periodically reviews contracts from various functional areas of First Commonwealth to identify potential derivatives embedded within selected contracts. As of December 31, 2017, First Commonwealth has interest derivative positions that are not designated as hedging instruments. See Note 8, “Derivatives,” for a description of these instruments.

Earnings Per Common Share

Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period.

Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For all periods presented, the dilutive effect on average shares outstanding is the result of compensatory stock options outstanding and unvested restricted stock grants.

Fair Value Measurements

In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” First Commonwealth groups financial assets and financial liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

• Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

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• Level 2—Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained for identical or comparable assets or liabilities from alternative pricing sources with reasonable levels of price transparency. Level 2 securities include U.S. Government securities issued by Agencies and Sponsored Enterprises, Obligations of States and Political Subdivisions, certain corporate securities, FHLB stock, loans held for sale, interest rate derivatives that include interest rate swaps, risk participation agreements and foreign currency contracts, certain other real estate owned and certain impaired loans.

• Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. If the inputs used to provide the evaluation are unobservable and/or there is very little, if any, market activity for the security or similar securities, the securities would be considered Level 3 securities. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The assets included in Level 3 are pooled trust preferred collateralized debt obligations, nonmarketable equity investments, certain other real estate owned and certain impaired loans.

In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon pricing models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. See Note 19 “Fair Values of Assets and Liabilities” for additional information.

Note 2—New Accounting Pronouncements

In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606)”. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", with an original effective date for annual reporting periods beginning after December 15, 2016. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 deferred the effective date of ASU 2014-09 to annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company adopted this ASU on January 1, 2018 using the modified retrospective method. A significant component of the Company’s revenues, net interest income on financial assets and liabilities, is excluded from the scope of the amended guidance. The Company has completed its overall assessment of additional revenue streams, including trust and asset management fees, brokerage and annuity sales, deposit related fees, interchange fees, and merchant income and has concluded that the Company’s revenue recognition for these revenue streams will not change significantly. Management’s evaluation of the impact of the new standard on revenue generated from insurance commissions and fees, as well as all related processes and procedures, will be completed before the end of the first quarter of 2018. Until the evaluation of the insurance commissions and fees is completed, the Company cannot conclude whether the new standard has a material impact on the insurance commission revenue stream or the Company’s financial statements.

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Entities have the option to use certain relief; full retrospective application is prohibited. We are currently evaluating the potential impact of ASU 2016-02 on our financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which amends the guidance for recognizing credit losses from an “incurred loss” methodology that delays recognition of credit losses until it is probable a loss has been incurred to an expected credit loss methodology. The guidance requires the use of the modified retrospective transition method by means of a cumulative-effect

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adjustment to equity as of the beginning of the period in which the guidance is adopted. The standard is effective for the Company as of January 1, 2020. The Company has formed a cross-functional implementation team to evaluate the provisions of the amendment, data requirements and determination of necessary modifications to its existing methodologies, systems and processes. The Company continues to evaluate the impact of the amended guidance on First Commonwealth’s financial condition or results of operations.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230),” which provides guidance on eight specific cash flow issues: 1. debt prepayment or extinguishment costs; 2. settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates; 3. contingent consideration payments made after a business combination; 4. proceeds from the settlement of insurance claims; 5. proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6. distributions received from equity method investees; 7. beneficial interests in securitizations transactions; and 8. separately identifiable cash flows and application of the predominance principle. This ASU provides additional guidance for these eight issues, reducing current and potential diversity in practice. This standard is effective for the Company as of January 1, 2018. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations.

In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805), Clarifying the Definition of a Business" which provides a screen to determine when a set of assets and activities (a "set") is not a business. The screen requires that when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen thereby reduces the number of transactions that need to be further evaluated. If the screen is not met, this ASU: 1. requires that to be considered a business, a set must include, at a minimum, an input and substantive process that significantly contributes to the ability to create output; and 2. removes the evaluation of whether a market participant could replace the missing elements. The amendment provides a framework to assist entities in evaluating whether both an input and substantive process is present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. This ASU also narrows the definition of the term output so that the term is consistent with how outputs are described in Topic 606. This standard is effective for interim and annual periods for fiscal years beginning after December 15, 2017. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations, but may impact future business combinations.

In January 2017, the FASB issued ASU No. 2017-04, "Intangibles-Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment" which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. Impairment should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. Income tax effects from any tax deductible goodwill should be taken into consideration of the carrying amount of the reporting unit when measuring for goodwill impairment, if applicable. An entity still has the option to perform the qualitative assessment for the reporting unit to determine if the quantitative impairment test is necessary. This standard is effective for interim and annual periods for fiscal years beginning after December 15, 2019. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations.

In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities" with the objective of improving the financial reporting of hedging relationships to better portray the economic results of risk management activities in its financial statements. The main provisions of this ASU update the hedge accounting model to expand the ability to hedge risk, reduce complexity, and ease certain documentation and assessment requirements. It also eliminates the requirement to separately measure and report hedge ineffectiveness, and generally requires the change in fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations.

In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the corporate income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The ASU is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company will early adopt ASU 2018-02 in the first quarter of 2018. This ASU is not expected to have a material impact on First Commonwealth's financial condition or results of operations.

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Note 3—Acquisition

On April 3, 2017, the Company completed its acquisition of DCB Financial Corporation ("DCB") and its banking subsidiary, The Delaware County Bank and Trust Company, for consideration of $21.2 million in cash and 8.4 million shares of the Company's common stock. Through the acquisition, the Company obtained nine full-service banking offices and four limited service locations which are operating under the First Commonwealth name. This acquisition expands the Company's presence in the central Ohio market and added $383.1 million in loans and $484.4 million in deposits to the Company's balance sheet.

The table below summarizes the net assets acquired (at fair value) and consideration transferred in connection with the DCB Financial acquisition (dollars in thousands):

Consideration Paid
Cash paid to shareholders	$	21,232
Shares issued to shareholders (8,356,882 shares)	$	110,812
Total consideration paid			$	132,044
Fair Value of Assets Acquired
Cash and cash equivalents	24,420
Investment Securities	88,986
FHLB Stock	3,250
Loans	383,083
Premises and other equipment	12,113
Core deposit intangible	5,998
Other real estate	68
Bank owned life insurance	20,522
Other assets	16,450
Total assets acquired	554,890
Fair Value of Liabilities Assumed
Deposits	484,366
Capital lease obligation	7,851
Other Liabilities	1,182
Total liabilities assumed	493,399
Total Fair Value of Identifiable Net Assets			61,491
Goodwill			$	70,553

The goodwill of $70.6 million arising from the acquisition represents the value of synergies and economies of scale expected from combining the operations of the Company with DCB Financial Corporation.

The Company determined that this acquisition constitutes a business combination as defined in FASB ASC Topic 805, “Business Combinations.” Accordingly, as of the date of the acquisition, the Company recorded the assets acquired and liabilities assumed at fair value. The Company determined fair values in accordance with the guidance provided in FASB ASC Topic 820, “Fair Value Measurements and Disclosures.” Acquired loans were recorded at fair value with no carryover of the related allowance for loan losses. Fair value is established by discounting the expected future cash flows with a market discount rate for like maturities and risk instruments. At the date of acquisition, none of the loans were accounted for under the guidance of ASC Topic 310-30, “Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality.” We acquired $390.8 million in total loans and recognized a net combined yield and credit market adjustment of $7.7 million.

The fair value of the 8,356,882 common shares issued was determined based on the market price of the Company's common shares on the acquisition date.

Costs related to the acquisition totaled $10.2 million. These amounts were expensed as incurred and are recorded as a merger and acquisition related expense in the Consolidated Statements of Income.

59

As a result of the full integration of the operations of DCB, it is not practicable to determine revenue or net income included in the Company's operating results relating to DCB since the date of acquisition as DCB’s results cannot be separately identified.

On December 2, 2016, the Company completed the acquisition of 13 branches from FirstMerit Bank, NA receiving $476.6 million in cash. This acquisition further expands the Company's market into northern Ohio and included the purchase of $105.6 million in loans and $619.7 million in deposits.

The table below summarizes the net assets acquired (at fair value) and consideration transferred in connection with the FirstMerit Bank, NA acquisition (dollars in thousands):

Consideration Received
Cash received	$	(476,555	)
Total consideration received				$	(476,555	)
Fair Value of Assets Acquired
Cash and cash equivalents	2,914
Loans	102,097
Premises and other equipment	6,072
Core deposit intangible	11,330
Other assets	353
Total assets acquired	122,766
Fair Value of Liabilities Assumed
Deposits	619,729
Other Liabilities	70
Total liabilities assumed	619,799
Total Fair Value of Identifiable Net Assets				(497,033		)
Goodwill				$	20,478

The goodwill of $20.5 million arising from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of the Company with the branches acquired from FirstMerit Bank, NA. The goodwill for this transaction is expected to be deducted over a 15 year period for income tax purposes.

We acquired $105.6 million in total loans and recognized a net combined yield and credit market adjustment of $3.5 million.

Costs related to the acquisition totaled $3.2 million. These amounts were expensed as incurred and are recorded as a merger and acquisition related expense in the Consolidated Statements of Income.

The Company determined this acquisition constitutes a business combination as defined in FASB ASC Topic 805, “Business Combinations.” Accordingly, as of the date of the acquisition, assets acquired and liabilities assumed were recorded at fair value. Fair values were determined in accordance with the guidance provided in FASB ASC Topic 820, “Fair Value Measurements and Disclosures.” Acquired loans were recorded at fair value with no carryover of the related allowance for loan losses. Fair value is established by discounting the expected future cash flows with a market discount rate for like maturities and risk instruments. At the date of acquisition, none of the loans were accounted for under the guidance of ASC Topic 310-30, “Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality.”

60

Note 4—Supplemental Comprehensive Income Disclosures

The following table identifies the related tax effects allocated to each component of other comprehensive income in the Consolidated Statements of Comprehensive Income as of December 31. Reclassification adjustments related to securities available for sale are included in the “Net securities gains (losses)” line in the Consolidated Statements of Income and reclassification adjustments related to losses on derivatives are included in the "Other operating expenses" line in the Consolidated Statements of Income.

	2017									2016									2015
	Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount
	(dollars in thousands)
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period	$	7,023		$	(2,458	)	$	4,565		$	(6,304	)	$	2,206		$	(4,098	)	$	2,798		$	(978	)	$	1,820
Reclassification adjustment for (gains) losses on securities included in net income	(5,040		)	1,764			(3,276		)	(617		)	216			(401		)	153			(54		)	99
Total unrealized gains (losses) on securities	1,983			(694		)	1,289			(6,921		)	2,422			(4,499		)	2,951			(1,032		)	1,919
Unrealized gains (losses) on derivatives:
Unrealized holding (losses) gains on derivatives arising during the period	(901		)	315			(586		)	(479		)	168			(311		)	450			(158		)	292
Reclassification adjustment for losses (gains) on derivatives included in net income	119			(42		)	77			(70		)	24			(46		)	(49		)	17			(32		)
Total unrealized (losses) gains on derivatives	(782		)	273			(509		)	(549		)	192			(357		)	401			(141		)	260
Unrealized gains (losses) for postretirement obligations:
Net gain (loss)	94			(20		)	74			331			(116		)	215			(102		)	36			(66		)
Total unrealized gains (losses) for postretirement obligations	94			(20		)	74			331			(116		)	215			(102		)	36			(66		)
Total other comprehensive income (loss)	$	1,295		$	(441	)	$	854		$	(7,139	)	$	2,498		$	(4,641	)	$	3,250		$	(1,137	)	$	2,113

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The following table details the change in components of OCI for the year-ended December 31:

	2017
	Securities Available for Sale			Derivatives			Post-Retirement Obligation			Accumulated Other Comprehensive Income
	(dollars in thousands)
Balance at January 1	$	(7,455	)	$	203		$	225		$	(7,027	)
Other comprehensive income before reclassification adjustment	4,565			(586		)				3,979
Amounts reclassified from accumulated other comprehensive income (loss)	(3,276		)	77						(3,199		)
Net gain							74			74
Net other comprehensive income during the period	1,289			(509		)	74			854
Balance at December 31	$	(6,166	)	$	(306	)	$	299		$	(6,173	)
	2016
	Securities Available for Sale			Derivatives			Post-Retirement Obligation			Accumulated Other Comprehensive Income
	(dollars in thousands)
Balance at January 1	$	(2,956	)	$	560		$	10		$	(2,386	)
Other comprehensive income before reclassification adjustment	(4,098		)	(311		)				(4,409		)
Amounts reclassified from accumulated other comprehensive income (loss)	(401		)	(46		)				(447		)
Net gain							215			215
Net other comprehensive income during the period	(4,499		)	(357		)	215			(4,641		)
Balance at December 31	$	(7,455	)	$	203		$	225		$	(7,027	)
	2015
	Securities Available for Sale			Derivatives			Post-Retirement Obligation			Accumulated Other Comprehensive Income
	(dollars in thousands)
Balance at January 1	$	(4,875	)	$	300		$	76		$	(4,499	)
Other comprehensive income before reclassification adjustment	1,820			292						2,112
Amounts reclassified from accumulated other comprehensive income (loss)	99			(32		)				67
Net gain							(66		)	(66		)
Net other comprehensive income during the period	1,919			260			(66		)	2,113
Balance at December 31	$	(2,956	)	$	560		$	10		$	(2,386	)

Note 5—Supplemental Cash Flow Disclosures

The following table presents information related to cash paid during the year for interest and income taxes as well as detail on non-cash investing and financing activities for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Cash paid during the period for:
Interest	$	21,552		$	19,208		$	15,818
Income taxes	27,902			19,950			8,331
Non-cash investing and financing activities:
Loans transferred to other real estate owned and repossessed assets	3,067			4,824			8,257
Other real estate sales transferred to loans	1,891			—			—
Fair value of loans transferred from held to maturity to available for sale	15,102			18,758			3,196
Gross increase (decrease) in market value adjustment to securities available for sale	1,983			(6,919		)	2,949
Gross (decrease) increase in market value adjustment to derivatives	(783		)	(549		)	401
Investments redeemed, not settled	—			3,769			—
Investments committed to purchase, not settled	—			—			694
Net assets (liabilities) acquired through acquisition	37,070			(501,516		)	463
Proceeds from death benefit on bank-owned life insurance not received	245			437			—
Treasury shares issued	2,258			—			—

Note 6—Earnings per Share

The following table summarizes the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the years ending December 31:

	2017		2016		2015
Weighted average common shares issued	111,809,880		105,563,455		105,563,455
Average treasury shares	(16,463,079	)	(16,605,461	)	(16,045,900	)
Average deferred compensation shares	(37,411	)	—		—
Average unearned nonvested shares	(89,334	)	(106,421	)	(160,788	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share	95,220,056		88,851,573		89,356,767
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share	73,570		—		—
Additional common stock equivalents (deferred compensation) used to calculated diluted earnings per share	37,411		—		—
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share	95,331,037		88,851,573		89,356,767

The following table shows the number of shares and the price per share related to common stock equivalents that were not included in the computation of diluted earnings per share for the years ended December 31, because to do so would have been anti-dilutive.

	12/31/2017					12/31/2016					12/31/2015
		Price Range					Price Range					Price Range
	Shares	From		To		Shares	From		To		Shares	From		To
Restricted Stock	18,173	$	8.55	$	13.96	67,920	$	8.38	$	13.96	92,002	$	6.82	$	9.84

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Note 7—Cash and Due from Banks

Regulations of the Board of Governors of the Federal Reserve System impose uniform reserve requirements on all depository institutions with transaction accounts, such as checking accounts and NOW accounts. Reserves are maintained in the form of vault cash or balances held with the Federal Reserve Bank. First Commonwealth Bank maintained average balances of $10.3 million during 2017 and $5.1 million during 2016 with the Federal Reserve Bank.

Note 8—Derivatives

Derivatives Not Designated as Hedging Instruments

First Commonwealth is a party to interest rate derivatives that are not designated as hedging instruments. These derivatives relate to interest rate swaps that First Commonwealth enters into with customers to allow customers to convert variable rate loans to a fixed rate. First Commonwealth pays interest to the customer at a floating rate on the notional amount and receives interest from the customer at a fixed rate for the same notional amount. At the same time the interest rate swap is entered into with the customer, an offsetting interest rate swap is entered into with another financial institution. First Commonwealth pays the other financial institution interest at the same fixed rate on the same notional amount as the swap entered into with the customer, and receives interest from the financial institution for the same floating rate on the same notional amount.

The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties.

We have 36 risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution should the borrower fail to perform on its interest rate derivative contract with the financial institution. We have nine risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are the lead bank. The risk participation agreement provides credit protection to us should the borrower fail to perform on its interest rate derivative contract with us.

First Commonwealth is also party to interest rate caps that are not designated as hedging instruments. These derivatives relate to contracts that First Commonwealth enters into with loan customers providing a maximum interest rate on their variable rate loan. At the same time the interest rate cap is entered into with the customer, First Commonwealth enters into an offsetting interest rate cap with another financial institution. The notional amount and maximum interest rate on both interest cap contracts are identical.

The fee received, less the estimate of the loss for the credit exposure, was recognized in earnings at the time of the transaction.

Derivatives Designated as Hedging Instruments

The Company has entered into three interest rate swap contracts which were designated as cash flow hedges. The interest rate swaps have a total notional amount of $150.0 million, $35.0 million with an original maturity of three years and $115.0 million with an original maturity of four years. The Company's risk management objective for these hedges is to reduce its exposure to variability in expected future cash flows related to interest payments on commercial loans benchmarked to the 1-month LIBOR rate. Therefore, the interest rate swaps convert the interest payments on the first $150.0 million of 1-month LIBOR based commercial loans into fixed rate payments.

The periodic net settlement of interest rate swaps is recorded as an adjustment to "Interest and fees on loans" in the Consolidated Statement of Income. For the years ended December 31, 2017, 2016 and 2015, interest income was increased by $0.5 million, $1.6 million and $2.0 million, respectively, as a result of these interest rate swaps. Changes in the fair value of the effective portion of cash flow hedges are reported in OCI. When the cash flows associated with the hedged item are realized, the gain or loss included in OCI is recognized in "Interest and fees on loans," the same line item in the Consolidated Statement of Income as the income on the hedged items. The cash flow hedges were highly effective at December 31, 2017, 2016 and 2015 and changes in the fair value attributed to hedge ineffectiveness were not material.

The Company also enters into interest rate lock commitments in conjunction with its mortgage origination business. These are commitments to originate loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. The Company locks the rate in with an investor and commits to deliver the loan if settlement occurs (“best efforts”) or commits to deliver the locked loan in a binding (“mandatory”) delivery program with an investor. Loans under mandatory rate lock commitments are covered under forward sales contracts of mortgage-backed securities (“MBS”). Forward sales contracts of MBS are recorded at fair value with changes in fair value recorded in "Other noninterest expense" in the Consolidated Statements of Income. The impact to noninterest expense for the years ended December 31, 2017 was a decrease of $19 thousand. There were no interest rate lock commitments in 2016 or 2015.

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Interest rate lock commitments and commitments to deliver loans to investors are considered derivatives. The market value of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because they are not actively traded in stand-alone markets. We determine the fair value of rate lock commitments and delivery contracts by measuring the fair value of the underlying asset, which is impacted by current interest rates and taking into consideration the probability that the rate lock commitments will close or will be funded. At December 31, 2017, the underlying funded mortgage loan commitments had a carrying value of $14.3 million and a fair value of $14.7 million, while the underlying unfunded mortgage loan commitments had a notional amount of $13.8 million.

In addition, a small amount of interest income on loans is exposed to changes in foreign exchange rates. Several commercial borrowers have a portion of their operations outside of the United States and borrow funds on a short-term basis to fund those operations. In order to reduce the risk related to the translation of foreign denominated transactions into U.S. dollars, the Company enters into foreign exchange forward contracts. These contracts relate principally to the Euro and the Canadian dollar. The contracts are recorded at fair value with changes in fair value recorded in "Other noninterest expense" in the Consolidated Statements of Income. The impact on other noninterest expense for the year ended December 31, 2017 totaled $4 thousand. At December 31, 2017 and December 31, 2016, the underlying loans had a carrying value of $10.0 million and $4.7 million, respectively, and a fair value of $10.1 million and $4.7 million, respectively.

The following table depicts the credit value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of risk participation agreements participated to other banks at December 31:

	2017			2016
	(dollars in thousands)
Derivatives not Designated as Hedging Instruments
Credit value adjustment	$	(791	)	$	(317	)
Notional Amount:
Interest rate derivatives	401,304			345,102
Interest rate caps	46,444			14,762
Risk participation agreements	197,660			174,213
Sold credit protection on risk participation agreements	(46,170		)	(40,281		)
Derivatives Designated as Hedging Instruments
Interest rate swaps:
Fair value adjustment	459			(443		)
Notional Amount	150,000			200,000
Interest rate forwards:
Fair value adjustment	19			—
Notional Amount	17,000			—
Foreign exchange forwards:
Fair value adjustment	(70		)	(8		)
Notional Amount	10,077			4,749

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The table below presents the amount representing the change in the fair value of derivative assets and derivative liabilities attributable to credit risk included in “Other income” on the Consolidated Statements of Income for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Non-hedging interest rate derivatives:
(Decrease) increase in other income	$	(473	)	$	219		$	(274	)
Hedging interest rate derivatives:
Increase in interest income	452			1,627			2,049
Increase in other income	119			70			64
Hedging interest rate forwards:
Decrease in other expense	(19		)	—			—
Hedging interest rate derivatives:
Increase (decrease) in other expense	4			(5		)	—

The fair value of our derivatives is included in a table in Note 19, “Fair Values of Assets and Liabilities,” in the line items “Other assets” and “Other liabilities.”

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Note 9—Investment Securities

Securities Available for Sale

Below is an analysis of the amortized cost and fair values of securities available for sale at December 31:

	2017									2016
	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	$	10,556	$	789	$	(7	)	$	11,338	$	15,143	$	1,481	$	(7	)	$	16,617
Mortgage-Backed Securities – Commercial	24,611		—		(462		)	24,149		—		—		—			—
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	632,422		2,622		(9,489		)	625,555		683,601		4,557		(11,305		)	676,853
Mortgage-Backed Securities – Commercial	—		—		—			—		1		—		—			1
Other Government-Sponsored Enterprises	1,098		—		(1		)	1,097		16,700		—		(69		)	16,631
Obligations of States and Political Subdivisions	27,083		327		—			27,410		27,075		195		(41		)	27,229
Corporate Securities	15,907		590		(4		)	16,493		5,903		416		—			6,319
Pooled Trust Preferred Collateralized Debt Obligations	27,499		526		(4,379		)	23,646		39,989		427		(7,124		)	33,292
Total Debt Securities	739,176		4,854		(14,342		)	729,688		788,412		7,076		(18,546		)	776,942
Equities	1,670		—		—			1,670		1,670		—		—			1,670
Total Securities Available for Sale	$	740,846	$	4,854	$	(14,342	)	$	731,358	$	790,082	$	7,076	$	(18,546	)	$	778,612

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 30 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.

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The amortized cost and estimated fair value of debt securities available for sale at December 31, 2017, by contractual maturity, are shown below:

	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	1,098	$	1,097
Due after 1 but within 5 years	13,989		14,020
Due after 5 but within 10 years	27,083		27,410
Due after 10 years	29,417		26,119
	71,587		68,646
Mortgage-Backed Securities (a)	667,589		661,042
Total Debt Securities	$	739,176	$	729,688

(a) Mortgage Backed Securities include an amortized cost of $35.2 million and a fair value of $35.5 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $632.4 million and a fair value of $625.6 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, maturities and other-than-temporary impairment charges related to securities available for sale were as follows for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Proceeds from sales	$	143,660		$	55,744		$	88,054
Gross (losses) gains realized:
Sales Transactions:
Gross gains	$	359		$	305		$	—
Gross losses	(316		)	(277		)	(284		)
	43			28			(284		)
Maturities and impairment
Gross gains	5,057			589			131
Gross losses	(60		)	—			—
Other-than-temporary impairment	—			—			—
	4,997			589			131
Net gains and impairment	$	5,040		$	617		$	(153	)

Proceeds from the sales of investments for the year ended December 31, 2017 includes the liquidation of the DCB investment portfolio and the sale of small positions in CMO and MBS investments. During 2017, gross gains from maturities and impairment resulted from the early redemption of two pooled trust preferred securities. The successful auction call of PreSTL XIII provided a gain of $4.3 million and the liquidation of PreSTL VII by senior note holders resulted in a gain of $0.7 million.

Proceeds from the sales of investments in 2016 were related to sales of small positions in CMO's and MBS's. During 2016, a gain of $0.6 million was recognized as a result of the early redemption of a pooled trust preferred security with a book value of $3.1 million. This security was redeemed due to an election by the senior note holders to liquidate the trust.

In 2015, a $0.3 million loss was recognized on the sale of approximately $75.0 million of low-yielding U.S. government agency securities. Proceeds from the sale of these securities were reinvested into higher yielding mortgage-backed securities.

Securities available for sale with an approximate fair value of $569.0 million and $445.8 million were pledged as of December 31, 2017 and 2016, respectively, to secure public deposits and for other purposes required or permitted by law.

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Securities Held to Maturity

Below is an analysis of the amortized cost and fair values of debt securities held to maturity at December 31:.

	2017									2016
	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	$	3,925	$	—	$	(14	)	$	3,911	$	4,297	$	—	$	(4	)	$	4,293
Mortgage-Backed Securities – Commercial	58,249		—		(1,394		)	56,855		34,444		—		(561		)	33,883
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	305,126		10		(2,552		)	302,584		280,430		5		(2,527		)	277,908
Mortgage-Backed Securities – Commercial	14,056		—		(71		)	13,985		14,675		—		(142		)	14,533
Obligations of States and Political Subdivisions	40,540		335		(161		)	40,714		38,667		55		(721		)	38,001
Debt Securities Issued by Foreign Governments	200		—		—			200		—		—		—			—
Total Securities Held to Maturity	$	422,096	$	345	$	(4,192	)	$	418,249	$	372,513	$	60	$	(3,955	)	$	368,618

The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2017, 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	$	87	$	87
Due after 1 but within 5 years	3,663		3,660
Due after 5 but within 10 years	35,361		35,534
Due after 10 years	1,629		1,633
	40,740		40,914
Mortgage-Backed Securities (a)	381,356		377,335
Total Debt Securities	$	422,096	$	418,249

(a) Mortgage Backed Securities include an amortized cost of $62.2 million and a fair value of $60.8 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $319.2 million and a fair value of $316.6 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 $338.3 million and $119.2 million were pledged as of December 31, 2017 and 2016, respectively, to secure public deposits for other purposes required or permitted by law.

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Note 10—Impairment of Investment Securities

Securities Available for Sale

As required by FASB ASC Topic 320, “Investments—Debt and Equity Securities,” credit related other-than-temporary impairment on debt securities is recognized in earnings while non-credit related other-than-temporary impairment on debt securities not expected to be sold is recognized in other comprehensive income (“OCI”). During the years ended December 31, 2017, 2016 and 2015, no other-than-temporary impairment charges were recognized.

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.

We review our investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, 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. In addition, the risk of future other-than-temporary impairment may be influenced by additional bank failures, weakness in the U.S. economy, changes in real estate values and additional interest deferrals in our pooled trust preferred collateralized debt obligations. Our pooled trust preferred collateralized debt obligations are beneficial interests in securitized financial assets within the scope of FASB ASC Topic 325, “Investments—Other,” and are therefore evaluated for other-than-temporary impairment using management’s best estimate of future cash flows. If these estimated cash flows determine it is probable that an adverse change in cash flows has occurred, then other-than-temporary impairment would be recognized in accordance with FASB ASC Topic 320. There is a risk that First Commonwealth will record other-than-temporary impairment charges in the future. See Note 19, “Fair Values of Assets and Liabilities,” for additional information.

The following table presents the gross unrealized losses and estimated fair values at December 31, 2017 for both available for sale and held to maturity securities by investment category and time frame for which the 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	$	5,584	$	(21	)	$	—	$	—		$	5,584	$	(21	)
Mortgage-Backed Securities – Commercial	48,322		(962		)	32,683		(894		)	81,005		(1,856		)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	351,222		(2,295		)	400,984		(9,746		)	752,206		(12,041		)
Mortgage-Backed Securities – Commercial	13,985		(71		)	—		—			13,985		(71		)
Other Government-Sponsored Enterprises	997		(1		)	99		—			1,096		(1		)
Obligations of States and Political Subdivisions	7,144		(32		)	3,653		(129		)	10,797		(161		)
Corporate Securities	3,993		(4		)	—		—			3,993		(4		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			19,120		(4,379		)	19,120		(4,379		)
Total Securities	$	431,247	$	(3,386	)	$	456,539	$	(15,148	)	$	887,786	$	(18,534	)

At December 31, 2017, pooled trust preferred collateralized debt obligations accounted for 24% of unrealized losses due to changes in interest rates and the illiquid market for this type of investment. Fixed income securities issued by U.S. Government-sponsored enterprises comprised 65% of total unrealized losses due to changes in market interest rates. Government agencies and obligations of state and political subdivisions each account for 10% of total unrealized losses as a result of changes in market interest rates. At December 31, 2017, there were 98 debt securities in an unrealized loss position, 30 of which related to residential mortgage-backed securities with an unrealized loss of 12 months or more. There were no equity securities in an unrealized loss position at December 31, 2017.

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The following table presents the gross unrealized losses and estimated fair value at December 31, 2016 for both available for sale and held to maturity securities by investment category and time frame for which the securities had 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	$	4,898	$	(11	)	$	—	$	—		$	4,898	$	(11	)
Mortgage-Backed Securities – Commercial	33,883		(561		)	—		—			33,883		(561		)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	670,708		(11,630		)	56,200		(2,202		)	726,908		(13,832		)
Mortgage-Backed Securities – Commercial	14,534		(142		)	—		—			14,534		(142		)
Other Government-Sponsored Enterprises	16,632		(69		)	—		—			16,632		(69		)
Obligations of States and Political Subdivisions	33,277		(762		)	—		—			33,277		(762		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			28,952		(7,124		)	28,952		(7,124		)
Total Securities	$	773,932	$	(13,175	)	$	85,152	$	(9,326	)	$	859,084	$	(22,501	)

As of December 31, 2017, our corporate securities had an amortized cost and estimated fair value of $15.9 million and $16.5 million, respectively, and were comprised of debt for large regional banks. At December 31, 2016, these securities had an amortized cost of $5.9 million and estimated fair value of $6.3 million. There was one corporate security in an unrealized loss position as of December 31, 2017 and no corporate securities in a loss position as of December 31, 2016. When unrealized losses exist, management reviews each of the issuer’s asset quality, earnings trend and capital position, to determine whether issues in an unrealized loss position were other-than-temporarily impaired. All interest payments on the corporate securities are being made as contractually required.

As of December 31, 2017, the book value of our pooled trust preferred collateralized debt obligations totaled $27.5 million with an estimated fair value of $23.6 million, which includes securities comprised of 206 banks and other financial institutions. All of our pooled securities are mezzanine tranches, two of which have no senior class remaining in the issue. The credit ratings on all of the issues are below investment grade. At the time of initial issue, the subordinated tranches ranged in size from approximately 7% to 35% of the total principal amount of the respective securities and no more than 5% of any pooled security consisted of a security issued by any one institution. As of December 31, 2017, after taking into account management’s best estimates of future interest deferrals and defaults, two of our securities had no excess subordination in the tranches we own and five of our securities had excess subordination which ranged from 2% to 72% of the current performing collateral.

The following table provides additional information related to our pooled trust preferred collateralized debt obligations as of December 31, 2017:

Deal	Class	Book Value		Estimated Fair Value		Unrealized Gain (Loss)			Moody’s/ Fitch Ratings	Number of Banks	Deferrals and Defaults as a % of Current Collateral		Excess Subordination as a % of Current Performing Collateral
(dollars in thousands)
PreTSL IV	Mezzanine	$	1,817	$	1,405	$	(412	)	Ba1/BB	6	18.05	%	72.13	%
PreTSL VIII	Mezzanine	2,043		2,228		185			C/C	26	38.52		0.00
PreTSL IX	Mezzanine	2,448		2,052		(396		)	B1/C	37	27.83		19.46
PreTSL X	Mezzanine	1,863		2,125		262			Caa1/C	41	27.93		1.62
PreTSL XII	Mezzanine	6,097		5,209		(888		)	B3/C	63	23.35		0.00
PreTSL XIV	Mezzanine	13,136		10,453		(2,683		)	Ba2/CCC	49	12.95		39.26
MMCap I	Mezzanine	95		174		79			Ca/C	7	69.35		69.99
Total		$	27,499	$	23,646	$	(3,853	)

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Lack of liquidity in the market for trust preferred collateralized debt obligations, below investment grade credit rating and market uncertainties related to the financial industry are factors contributing to the impairment on these securities.

In the fourth quarter of 2017, an auction call was successfully completed on PreTSL XIII. This resulted in the security being called at par providing a gain of $4.3 million. The book value of PreTSL XIII before redemption was $13.2 million. In October 2016, the Senior note holders of PreTSL VII elected to liquidate all assets of the trust. The sale of the assets occurred in the fourth quarter of 2016 and the redemption was completed in the first quarter of 2017. Our book value before redemption of PreTSL VII was $3.1 million and, at the time of redemption, a gain of $0.6 million was recognized in 2016 and an additional gain of $0.7 million was recorded in the first quarter of 2017.

All of the Company's pooled trust preferred securities are included in the non-exclusive list issued by the regulatory agencies and therefore are not considered covered funds under the Volcker Rule.

On a quarterly basis we evaluate our debt securities for other-than-temporary impairment. For the years ended December 31, 2017, 2016 and 2015 there were no credit related other-than-temporary impairment charges recognized on our pooled trust preferred collateralized debt obligations. When evaluating these investments we determine a credit related portion and a non-credit related portion of other-than-temporary impairment. The credit related portion is recognized in earnings and represents the difference between book value and the present value of future cash flows. The non-credit related portion is recognized in OCI and represents the difference between the fair value of the security and the amount of credit related impairment. A discounted cash flow analysis provides the best estimate of credit related other-than-temporary impairment for these securities.

Additional information related to the discounted cash flow analysis follows:

Our pooled trust preferred collateralized debt obligations are measured for other-than-temporary impairment within the scope of FASB ASC Topic 325 by determining whether it is probable that an adverse change in estimated cash flows has occurred. Determining whether there has been an adverse change in estimated cash flows from the cash flows previously projected involves comparing the present value of remaining cash flows previously projected against the present value of the cash flows estimated at December 31, 2017. We consider the discounted cash flow analysis to be our primary evidence when determining whether credit related other-than-temporary impairment exists.

Results of a discounted cash flow test are significantly affected by other variables such as the estimate of future cash flows, credit worthiness of the underlying banks and determination of probability of default of the underlying collateral. The following provides additional information for each of these variables:

• Estimate of Future Cash Flows—Cash flows are constructed in an INTEX cash flow model which includes each deal’s structural features. Projected cash flows include prepayment assumptions, which are dependent on the issuer's asset size and coupon rate. For collateral issued by financial institutions over $15 billion in asset size with a coupon over 7%, a 100% prepayment rate is assumed. Financial institutions over $15 billion with a coupon of 7% or under are assigned a prepayment rate of 40% for two years and 2% thereafter. Financial institutions with assets between $2 billion and $15 billion with coupons over 7% are assigned a 5% prepayment rate. For financial institutions below $2 billion, if the coupon is over 10%, a prepayment rate of 5% is assumed and for all other issuers, there is no prepayment assumption incorporated into the cash flows. The modeled cash flows are then used to estimate if all the scheduled principal and interest payments of our investments will be returned.

• Credit Analysis—A quarterly credit evaluation is performed for each of the 206 banks comprising the collateral across the various pooled trust preferred securities. Our credit evaluation considers all evidence available to us and includes the nature of the issuer’s business, its years of operating history, corporate structure, loan composition, loan concentrations, deposit mix, asset growth rates, geographic footprint and local economic environment. Our analysis focuses on profitability, return on assets, shareholders’ equity, net interest margin, credit quality ratios, operating efficiency, capital adequacy and liquidity.

• Probability of Default—A probability of default is determined for each bank and is used to calculate the expected impact of future deferrals and defaults on our expected cash flows. Each bank in the collateral pool is assigned a probability of default for each year until maturity. Currently, any bank that is in default is assigned a 100% probability of default and a 0% projected recovery rate. All other banks in the pool are assigned a probability of default based on their unique credit characteristics and market indicators with a 10% projected recovery rate. For the majority of banks currently in deferral we assume the bank continues to defer and will eventually default and therefore a 100% probability of default is assigned. However, for some deferring collateral there is the possibility that they become current on interest or principal payments at some point in the future and in those cases a probability that the deferral will ultimately cure is assigned. The probability of default is updated quarterly. As of December 31, 2017, default probabilities for performing collateral ranged from 0.33% to 50%.

Our credit evaluation provides a basis for determining deferral and default probabilities for each underlying piece of collateral. Using the results of the credit evaluation, the next step of the process is to look at pricing of senior debt or credit default swaps

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for the issuer (or where such information is unavailable, for companies having similar credit profiles as the issuer). The pricing of these market indicators provides the information necessary to determine appropriate default probabilities for each bank.

In addition to the above factors, our evaluation of impairment also includes a stress test analysis which provides an estimate of excess subordination for each tranche. We stress the cash flows of each pool by increasing current default assumptions to the level of defaults which results in an adverse change in estimated cash flows. This stressed breakpoint is then used to calculate excess subordination levels for each pooled trust preferred security. The results of the stress test allows management to identify those pools that are at a greater risk for a future break in cash flows so that we can monitor banks in those pools more closely for potential deterioration of credit quality.

Our cash flow analysis as of December 31, 2017, indicates that no credit related other-than-temporary impairment has occurred on our pooled trust preferred securities during the year ended December 31, 2017. Based upon the analysis performed by management, it is probable that two of our pooled trust preferred securities are expected to experience contractual principal and interest shortfalls and therefore appropriate other-than-temporary impairment charges were recorded in prior periods. These securities are identified in the previous table with 0% “Excess Subordination as a % of Current Performing Collateral.” For the remaining securities in the table, our analysis as of December 31, 2017 indicates that it is probable that we will collect all contractual principal and interest payments. For four of those securities, PreTSL IX, PreTSL X, PreTSL XIV and MMCap I, other-than-temporary impairment charges were recorded in prior periods; however, due to improvement in the expected cash flows of these securities, it is now probable that all contractual payments will be received.

During 2008, 2009 and 2010, other-than-temporary impairment charges were recognized on all of our pooled trust preferred securities, except for PreTSL IV. Our cash flow analysis as of December 31, 2017, for all of these impaired securities indicates that it is now probable we will collect principal and interest in excess of what was estimated at the time other-than-temporary impairment charges were recorded. This change can be attributed to improvement in the underlying collateral for these securities and has resulted in the present value of estimated future principal and interest payments exceeding the securities' current book value. The excess for each bond of the present value of future cash flows over our current book value ranges from 18% to 104% and will be recognized as an adjustment to yield over the remaining life of these securities. The excess subordination recognized as an adjustment to yield is reflected in the following table as increases in cash flows expected to be collected.

The table below provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Balance, beginning (a)	$	17,056		$	24,851		$	26,246
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—			—
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—			—
Increases in cash flows expected to be collected, recognized over the remaining life of the security (b)	(890		)	(1,124		)	(1,177		)
Reduction for debt securities called during the period	(3,958		)	(6,671		)	(218		)
Balance, ending	$	12,208		$	17,056		$	24,851

(a) The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

(b) Represents the increase in cash flows recognized either as principal payments or interest income during the period.

For the years ended December 31, 2017, 2016 and 2015, there was no impairment recognized on equity securities. On a quarterly basis, management evaluates equity securities for other-than-temporary impairment. As part of this evaluation we review the severity and duration of decline in estimated fair value, research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, regulatory filings, impact of interest rate changes and other relevant information. There were no equity securities in an unrealized loss position as of December 31, 2017 and 2016.

In the table above, the $4.0 million reduction in cumulative credit losses in 2017 and the $6.7 million reduction in 2016 related to the early redemption of PreTSL XIII and PreTSL VII, respectively.

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Other Investments

As a member of the 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 December 31, 2017 and 2016, our FHLB stock totaled $29.8 million and $36.5 million, respectively and is included in “Other investments” on the 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 for the year ended December 31, 2017.

Note 11—Loans and Allowance for Credit Losses

The following table provides outstanding balances related to each of our loan types as of December 31:

	2017						2016
	Originated Loans		Acquired Loans		Total Loans		Originated Loans		Acquired Loans		Total Loans
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,122,741	$	40,642	$	1,163,383	$	1,131,148	$	8,399	$	1,139,547
Real estate construction	242,905		5,963		248,868		217,840		1,781		219,621
Residential real estate	1,206,119		220,251		1,426,370		1,165,851		63,341		1,229,192
Commercial real estate	1,892,185		126,911		2,019,096		1,717,043		25,167		1,742,210
Loans to individuals	543,411		6,248		549,659		546,589		2,188		548,777
Total loans	$	5,007,361	$	400,015	$	5,407,376	$	4,778,471	$	100,876	$	4,879,347

Credit Quality Information

As part of the on-going monitoring of credit quality within the loan portfolio, the following credit worthiness categories are used in grading our loans:

Pass	Acceptable levels of risk exist in the relationship. Includes all loans not classified as OAEM, substandard or doubtful.
Other Assets Especially Mentioned (OAEM)	Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Bank’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected.
Substandard	Well-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard.
Doubtful	Loans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable.

The use of creditworthiness categories to grade loans permits management’s use of migration analysis to estimate a portion of credit risk. The Company’s internal creditworthiness grading system provides a measurement of credit risk based primarily on an evaluation of the borrower’s cash flow and collateral. Movements between these rating categories provide a predictive measure of credit losses and therefore assist in determining the appropriate level for the loan loss reserves. Category ratings are reviewed each quarter, at which time management analyzes the results, as well as other external statistics and factors related to loan performance. Loans that migrate towards higher risk rating levels generally have an increased risk of default, whereas loans that migrate toward lower risk ratings generally will result in a lower risk factor being applied to those related loan balances.

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The following tables represent our credit risk profile by creditworthiness category for the years ended December 31:

	2017
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated Loans
Pass	$	1,061,147	$	242,905	$	1,194,352	$	1,855,253	$	543,175	$	4,896,832
Non-Pass
OAEM	26,757		—		1,435		13,326		—		41,518
Substandard	30,431		—		10,332		23,606		236		64,605
Doubtful	4,406		—		—		—		—		4,406
Total Non-Pass	61,594		—		11,767		36,932		236		110,529
Total	$	1,122,741	$	242,905	$	1,206,119	$	1,892,185	$	543,411	$	5,007,361
Acquired Loans
Pass	$	34,573	$	5,963	$	217,824	$	121,536	$	6,231	$	386,127
Non-Pass
OAEM	5,567		—		798		3,517		—		9,882
Substandard	502		—		1,629		1,858		17		4,006
Doubtful	—		—		—		—		—		—
Total Non-Pass	6,069		—		2,427		5,375		17		13,888
Total	$	40,642	$	5,963	$	220,251	$	126,911	$	6,248	$	400,015

	2016
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated Loans
Pass	$	1,038,844	$	217,565	$	1,152,511	$	1,691,220	$	546,316	$	4,646,456
Non-Pass
OAEM	27,387		275		5,923		7,596		—		41,181
Substandard	64,917		—		7,417		18,227		273		90,834
Doubtful	—		—		—		—		—		—
Total Non-Pass	92,304		275		13,340		25,823		273		132,015
Total	$	1,131,148	$	217,840	$	1,165,851	$	1,717,043	$	546,589	$	4,778,471
Acquired Loans
Pass	$	7,591	$	1,781	$	62,919	$	24,043	$	2,185	$	98,519
Non-Pass
OAEM	486		—		—		—		—		486
Substandard	322		—		422		1,124		3		1,871
Doubtful	—		—		—		—		—		—
Total Non-Pass	808		—		422		1,124		3		2,357
Total	$	8,399	$	1,781	$	63,341	$	25,167	$	2,188	$	100,876

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Portfolio Risks

The credit quality of our loan portfolio can potentially represent significant risk to our earnings, capital, regulatory agency relationships, investment community and shareholder returns. First Commonwealth devotes a substantial amount of resources managing this risk primarily through our credit administration department that develops and administers policies and procedures for underwriting, maintaining, monitoring and collecting activities. Credit administration is independent of lending departments and oversight is provided by the credit committee of the First Commonwealth Board of Directors.

Total gross charge-offs for the years ended December 31, 2017 and 2016 were $12.5 million and $26.3 million, respectively.

Criticized loans have been evaluated when determining the appropriateness of the allowance for credit losses, which we believe is adequate to absorb losses inherent to the portfolio as of December 31, 2017. However, changes in economic conditions, interest rates, borrower financial condition, delinquency trends or previously established fair values of collateral factors could significantly change those judgmental estimates.

Age Analysis of Past Due Loans by Segment

The following tables delineate the aging analysis of the recorded investments in past due loans as of December 31. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.

	2017
	30 - 59 days past due		60 - 89 days past due		90 days and greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Originated Loans
Commercial, financial, agricultural and other	$	378	$	61	$	40	$	18,741	$	19,220	$	1,103,521	$	1,122,741
Real estate construction	199		—		—		—		199		242,706		242,905
Residential real estate	4,618		1,025		1,076		6,225		12,944		1,193,175		1,206,119
Commercial real estate	2,198		28		6		3,240		5,472		1,886,713		1,892,185
Loans to individuals	1,899		769		623		236		3,527		539,884		543,411
Total	$	9,292	$	1,883	$	1,745	$	28,442	$	41,362	$	4,965,999	$	5,007,361
Acquired Loans
Commercial, financial, agricultural and other	$	6	$	7	$	—	$	436	$	449	$	40,193	$	40,642
Real estate construction	—		—		—		—		—		5,963		5,963
Residential real estate	148		9		83		705		945		219,306		220,251
Commercial real estate	—		—		—		1,077		1,077		125,834		126,911
Loans to individuals	36		20		26		17		99		6,149		6,248
Total	$	190	$	36	$	109	$	2,235	$	2,570	$	397,445	$	400,015

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	2016
	30 - 59 days past due		60 - 89 days past due		90 days and greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Originated Loans
Commercial, financial, agricultural and other	$	2,380	$	171	$	75	$	17,928	$	20,554	$	1,110,594	$	1,131,148
Real estate construction	183		—		—		—		183		217,657		217,840
Residential real estate	4,133		1,089		995		5,792		12,009		1,153,842		1,165,851
Commercial real estate	265		327		57		3,443		4,092		1,712,951		1,717,043
Loans to individuals	1,640		776		970		273		3,659		542,930		546,589
Total	$	8,601	$	2,363	$	2,097	$	27,436	$	40,497	$	4,737,974	$	4,778,471
Acquired Loans
Commercial, financial, agricultural and other	$	486	$	—	$	—	$	—	$	486	$	7,913	$	8,399
Real estate construction	—		—		—		—		—		1,781		1,781
Residential real estate	148		39		34		422		643		62,698		63,341
Commercial real estate	—		—		—		162		162		25,005		25,167
Loans to individuals	1		7		—		3		11		2,177		2,188
Total	$	635	$	46	$	34	$	587	$	1,302	$	99,574	$	100,876

Nonaccrual Loans

The previous tables summarize nonaccrual loans by loan segment. The Company generally places loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain, when part of the principal balance has been charged off and no restructuring has occurred, or the loans reach a certain number of days past due. Generally, loans 90 days or more past due are placed on nonaccrual status, except for consumer loans which are placed in nonaccrual status at 150 days past due.

When a loan is placed on nonaccrual, the accrued unpaid interest receivable is reversed against interest income and all future payments received are applied as a reduction to the loan principal. Generally, the loan is returned to accrual status when (a) all delinquent interest and principal become current under the terms of the loan agreement or (b) the loan is both well-secured and in the process of collection and collectability is no longer in doubt.

Impaired Loans

Management considers loans to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Determination of impairment is treated the same across all loan categories. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole source or repayment for the loan is the operation or liquidation of collateral. When the loan is collateral dependent, the appraised value less estimated cost to sell is utilized. If management determines the value of the impaired loan is less than the recorded investment in the loan, impairment is recognized through an allowance estimate or a charge-off to the allowance. Troubled debt restructured loans on accrual status are considered to be impaired loans.

When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method.

There were no impaired loans held for sale at December 31, 2017 and December 31, 2016. Total gains of $21 thousand were recognized on sales of impaired loans during the year ended December 31, 2017. No gains were recognized on sales of impaired loans during the year ended December 31, 2016.

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The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of December 31, 2017 and 2016. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired for the years ended December 31, 2017, 2016 and 2015. Average balances are calculated based on month-end balances of the loans for the period reported and are included in the table below based on its period end allowance position.

	2017
	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest Income Recognized
	(dollars in thousands)
Originated Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	5,548	$	12,153			$	10,282	$	394
Real estate construction	—		—				—		—
Residential real estate	10,625		12,470				11,366		355
Commercial real estate	5,155		5,489				6,469		583
Loans to individuals	347		383				353		19
Subtotal	21,675		30,495				28,470		1,351
With an allowance recorded:
Commercial, financial, agricultural and other	16,866		21,094		$	3,478	9,391		96
Real estate construction	—		—		—		—		—
Residential real estate	456		478		107		167		—
Commercial real estate	954		954		128		143		4
Loans to individuals	—		—		—		—		—
Subtotal	18,276		22,526		3,713		9,701		100
Total	$	39,951	$	53,021	$	3,713	$	38,171	$	1,451
Acquired Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	436	$	449			$	476	$	—
Real estate construction	—		—				25		—
Residential real estate	666		965				535		—
Commercial real estate	940		1,842				2,135		—
Loans to individuals	17		17				6		—
Subtotal	2,059		3,273				3,177		—
With an allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—
Real estate construction	—		—		—		—		—
Residential real estate	93		122		4		74		—
Commercial real estate	137		150		29		155		—
Loans to individuals	—		—		—		—		—
Subtotal	230		272		33		229		—
Total	$	2,289	$	3,545	$	33	$	3,406	$	—

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	2016
	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest Income Recognized
	(dollars in thousands)
Originated Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	9,549	$	15,369			$	23,146	$	576
Real estate construction	—		—				4		44
Residential real estate	10,873		13,004				10,957		312
Commercial real estate	5,765		6,905				6,718		170
Loans to individuals	382		507				409		15
Subtotal	26,569		35,785				41,234		1,117
With an allowance recorded:
Commercial, financial, agricultural and other	13,423		19,226		$	2,530	13,885		99
Real estate construction	—		—		—		—		—
Residential real estate	424		475		164		241		4
Commercial real estate	810		810		434		555		25
Loans to individuals	—		—		—		—		—
Subtotal	14,657		20,511		3,128		14,681		128
Total	$	41,226	$	56,296	$	3,128	$	55,915	$	1,245
Acquired Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	—	$	—			$	—	$	—
Real estate construction	—		—				—		—
Residential real estate	406		480				406		—
Commercial real estate	162		162				162		—
Loans to individuals	3		3				3		—
Subtotal	571		645				571		—
With an allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—
Real estate construction	—		—		—		—		—
Residential real estate	16		16		16		16		—
Commercial real estate	—		—		—		—		—
Loans to individuals	—		—		—		—		—
Subtotal	16		16		16		16		—
Total	$	587	$	661	$	16	$	587	$	—

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	2015
	Average recorded investment		Interest Income Recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other	$	17,692	$	216
Real estate construction	95		—
Residential real estate	10,635		172
Commercial real estate	7,890		90
Loans to individuals	338		4
Subtotal	36,650		482
With an allowance recorded:
Commercial, financial, agricultural and other	7,731		129
Real estate construction	—		—
Residential real estate	403		—
Commercial real estate	674		4
Loans to individuals	—		—
Subtotal	8,808		133
Total	$	45,458	$	615

Unfunded commitments related to nonperforming loans were $2.4 million and $1.8 million at December 31, 2017 and 2016, respectively. After considering the collateral related to these commitments, a reserve of $178 thousand and $12 thousand was established for these off balance sheet exposures at December 31, 2017 and 2016, respectively.

Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources.

The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans as of December 31:

	2017		2016		2015
	(dollars in thousands)
Troubled debt restructured loans
Accrual status	$	11,563	$	13,790	$	14,139
Nonaccrual status	11,222		11,569		12,360
Total	$	22,785	$	25,359	$	26,499
Commitments
Letters of credit	$	60	$	—	$	—
Unused lines of credit	$	54	$	358	$	3,252
Total	$	114	$	358	$	3,252

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The following tables provide detail, including specific reserve and reasons for modification, related to loans identified as troubled debt restructurings during the years ending December 31:

	2017
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	6	$	6,768	$	1,806	$	987	$	9,561	$	6,946	$	566
Residential real estate	20	134		261		573		968		851		1
Commercial real estate	5	179		—		269		448		412		29
Loans to individuals	10	—		28		49		77		65		—
Total	41	$	7,081	$	2,095	$	1,878	$	11,054	$	8,274	$	596

	2016
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	5	$	23	$	6,318	$	3,854	$	10,195	$	6,210	$	317
Residential real estate	39	107		214		2,619		2,940		2,698		124
Commercial real estate	8	1,368		—		25		1,393		1,271		59
Loans to individuals	13	23		82		25		130		96		—
Total	65	$	1,521	$	6,614	$	6,523	$	14,658	$	10,275	$	500

	2015
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	12	$	1,751	$	3,195	$	4,527	$	9,473	$	8,823	$	1,330
Residential real estate	32	—		296		1,414		1,710		1,575		2
Commercial real estate	1	—		—		464		464		389		—
Loans to individuals	16	3		167		35		205		169		—
Total	61	$	1,754	$	3,658	$	6,440	$	11,852	$	10,956	$	1,332

The troubled debt restructurings included in the above tables are also included in the impaired loan tables provided earlier in this footnote. Loans defined as modified due to a change in rate include loans that were modified for a change in rate as well as a reamortization of the principal and an extension of the maturity. For the years ended December 31, 2017, 2016 and 2015, $0.3 million, $6.6 million and $3.7 million, respectively, of total rate modifications represent loans with modifications to the rate as well as payment due to reamortization.

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A troubled debt restructuring is considered to be in default when a restructured loan is 90 days or more past due. The following table provides information related to restructured loans that were considered to be in default during the year ending December 31:

	2017			2016			2015
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars in thousands)
Residential real estate	—	$	—	4	$	313	3	$	97
Loans to individuals	1	2		—	—		—	—
Total	1	$	2	4	$	313	3	$	97

The following tables provide detail related to the allowance for credit losses for the years ended December 31.

	2017
	Commercial, financial, agricultural and other			Real estate construction			Residential real estate			Commercial real estate			Loans to individuals			Total
	(dollars in thousands)
Allowance for credit losses:
Originated Loans:
Beginning balance	$	35,974		$	577		$	2,492		$	6,619		$	4,504		$	50,166
Charge-offs	(6,176		)	—			(1,261		)	(340		)	(4,220		)	(11,997		)
Recoveries	3,900			465			304			274			460			5,403
Provision (credit)	(10,280		)	307			1,218			10,775			2,660			4,680
Ending balance	23,418			1,349			2,753			17,328			3,404			48,252
Acquired Loans:
Beginning balance	$	—		$	—		$	19		$	—		$	—		$	19
Charge-offs	(458		)	—			(26		)	—			(28		)	(512		)
Recoveries	1			5			67			4			55			132
Provision (credit)	468			(5		)	(54		)	25			(27		)	407
Ending balance	11			—			6			29			—			46
Total ending balance	$	23,429		$	1,349		$	2,759		$	17,357		$	3,404		$	48,298
Ending balance: individually evaluated for impairment	$	3,478		$	—		$	111		$	157		$	—		$	3,746
Ending balance: collectively evaluated for impairment	19,951			1,349			2,648			17,200			3,404			44,552
Loans:
Ending balance	1,163,383			248,868			1,426,370			2,019,096			549,659			5,407,376
Ending balance: individually evaluated for impairment	22,450			—			6,698			6,003			—			35,151
Ending balance: collectively evaluated for impairment	1,140,933			248,868			1,419,672			2,013,093			549,659			5,372,225

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	2016
	Commercial, financial, agricultural and other			Real estate construction			Residential real estate			Commercial real estate			Loans to individuals			Total
	(dollars in thousands)
Allowance for credit losses:
Beginning balance	$	31,035		$	887		$	2,606		$	11,924		$	4,360		$	50,812
Charge-offs	(19,603		)	—			(1,189		)	(570		)	(4,943		)	(26,305		)
Recoveries	4,164			562			481			1,522			469			7,198
Provision (credit)	20,378			(872		)	594			(6,257		)	4,618			18,461
Ending balance on originated loans	35,974			577			2,492			6,619			4,504			50,166
Ending balance on acquired loans (1)	—			—			19			—			—			19
Total ending balance	$	35,974		$	577		$	2,511		$	6,619		$	4,504		$	50,185
Ending balance: individually evaluated for impairment	$	2,530		$	—		$	180		$	434		$	—		$	3,144
Ending balance: collectively evaluated for impairment	33,444			577			2,331			6,185			4,504			47,041
Loans:
Ending balance	1,139,547			219,621			1,229,192			1,742,210			548,777			4,879,347
Ending balance: individually evaluated for impairment	22,325			—			5,875			5,468			—			33,668
Ending balance: collectively evaluated for impairment	1,117,222			219,621			1,223,317			1,736,742			548,777			4,845,679

⁽¹⁾ Amount reflects provision expense and ending allowance balance for loans acquired in 2016 as part of the purchase of FirstMerit branches.

	2015
	Commercial, financial, agricultural and other			Real estate construction			Residential real estate			Commercial real estate			Loans to individuals			Total
	(dollars in thousands)
Allowance for credit losses:
Beginning balance	$	29,627		$	2,063		$	3,664		$	11,881		$	4,816		$	52,051
Charge-offs	(11,429		)	(8		)	(1,539		)	(1,538		)	(4,354		)	(18,868		)
Recoveries	1,097			84			587			229			684			2,681
Provision (credit)	11,740			(1,252		)	(106		)	1,352			3,214			14,948
Ending balance	$	31,035		$	887		$	2,606		$	11,924		$	4,360		$	50,812
Ending balance: individually evaluated for impairment	$	6,952		$	—		$	51		$	42		$	—		$	7,045
Ending balance: collectively evaluated for impairment	24,083			887			2,555			11,882			4,360			43,767
Loans:
Ending balance	1,150,906			220,736			1,224,465			1,479,000			608,643			4,683,750
Ending balance: individually evaluated for impairment	30,767			—			6,099			7,143			—			44,009
Ending balance: collectively evaluated for impairment	1,120,139			220,736			1,218,366			1,471,857			608,643			4,639,741

Note 12—Commitments and Letters of Credit

First Commonwealth is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. First Commonwealth’s exposure to credit loss in the event of nonperformance by the other party of the financial instrument for commitments to extend credit, standby letters of credit and commercial letters of credit is represented by the contract or notional amount of those instruments. First Commonwealth uses the same credit policies for underwriting all loans, including these commitments and conditional obligations.

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As of December 31, 2017 and 2016, First Commonwealth did not own or trade other financial instruments with significant off-balance sheet risk including derivatives such as futures, forwards, option contracts and the like, although such instruments may be appropriate to use in the future to manage interest rate risk. See Note 8, “Derivatives,” for a description of interest rate derivatives entered into by First Commonwealth.

Standby letters of credit and commercial letters of credit are conditional commitments issued by First Commonwealth to guarantee the performance of a customer to a third party. The contract or notional amount of these instruments reflects the maximum amount of future payments that First Commonwealth could be required to pay under the guarantees if there were a total default by the guaranteed parties, without consideration for possible recoveries under recourse provisions or from collateral held or pledged. In addition, many of these commitments are expected to expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements.

The following table identifies the notional amount of those instruments at December 31:

	2017		2016
	(dollars in thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,840,180	$	1,733,820
Financial standby letters of credit	17,946		18,108
Performance standby letters of credit	20,472		26,630
Commercial letters of credit	1,149		1,301

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. First Commonwealth evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by First Commonwealth upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral that is held varies but may include accounts receivable, inventory, property, plant and equipment, and residential and income-producing commercial properties.

The notional amounts outstanding at December 31, 2017 include amounts issued in 2017 of $1.5 million in financial standby letters of credit and $5.1 million in performance standby letters of credit. There were $0.3 million commercial letters of credit issued during 2017. A liability of $0.2 million has been recorded as of both December 31, 2017 and 2016, which represents the estimated fair value of letters of credit issued. The fair value of letters of credit is estimated based on the unrecognized portion of fees received at the time the commitment was issued.

Unused commitments and letters of credit provide exposure to future credit loss in the event of nonperformance by the borrower or guaranteed parties. Management’s evaluation of the credit risk in these commitments resulted in the recording of a liability of $5.2 million and $4.1 million as of December 31, 2017 and 2016, respectively. This liability is reflected in “Other liabilities” in the Consolidated Statements of Financial Condition. The credit risk evaluation incorporated probability of default, loss given default and estimated utilization for the next twelve months for each loan category and the letters of credit.

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Note 13—Premises and Equipment

Premises and equipment are described as follows:

	Estimated Useful Life	2017		2016
	(dollars in thousands)
Land	Indefinite	$	15,389	$	13,679
Buildings and improvements	10-50 years	88,386		80,364
Leasehold improvements	5-40 years	17,812		15,871
Furniture and equipment	3-7 years	64,609		61,324
Software	3-7 years	37,434		36,077
Subtotal		223,630		207,315
Less accumulated depreciation and amortization		142,291		139,781
Total premises and equipment		$	81,339	$	67,534

Depreciation related to premises and equipment included in noninterest expense for the years ended December 31, 2017, 2016 and 2015 amounted to $9.0 million, $7.5 million and $7.2 million, respectively.

First Commonwealth leases various premises and assorted equipment under non-cancellable agreements. Total future minimal rental commitments at December 31, 2017, were as follows:

	Premises		Equipment
	(dollars in thousands)
2018	$	4,459	$	136
2019	4,106		78
2020	3,348		15
2021	2,929		5
2022	2,646		—
Thereafter	12,851		—
Total	$	30,339	$	234

Included in the lease commitments above is $141 thousand in lease payments to be paid under a sale-leaseback arrangement. The sale-leaseback transaction occurred in 2005 and resulted in a gain of $297 thousand on the sale of a branch that is being recognized over the 15 year lease term through 2020.

Increases in utilities and taxes that may be passed on to the lessee under the terms of various lease agreements are not reflected in the above table. However, certain lease agreements provide for increases in rental payments based upon historical increases in the consumer price index or the lessor’s cost of operating the facility, and are included in the minimum lease commitments. Additionally, the table above includes rent expense that is recognized for rent holidays and during construction periods. Total lease expense amounted to $2.7 million, $3.7 million and $2.9 million in 2017, 2016 and 2015, respectively.

Note 14—Goodwill and Other Amortizing Intangible Assets

FASB ASC Topic 350-20, “Intangibles—Goodwill and Other,” requires an annual valuation of the fair value of a reporting unit that has goodwill and a comparison of the fair value to the book value of equity to determine whether the goodwill has been impaired. Goodwill is also required to be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. When triggering events or circumstances indicate goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. ASU 2011-8 provides that if an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required.

We consider First Commonwealth to be one reporting unit. The carrying amount of goodwill as of December 31, 2017 and 2016 was $255.4 million and $186.5 million, respectively. The $68.9 million increase in goodwill during the year ended December 31, 2017 is a result of $70.6 million recognized as a result of the acquisition of DCB Financial in 2017 offset by a $1.6 million decrease related to adjustments to the fair value of assets acquired as part of the branch acquisition in 2016. No impairment charges on goodwill or other intangible assets were incurred in 2017, 2016 or 2015.

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We test goodwill for impairment as of November 30th each year and again at any quarter-end if any material events occur during a quarter that may affect goodwill.

An assessment of qualitative factors was completed as of November 30, 2017 and December 31, 2017 and indicated that it is more likely than not that the fair value of First Commonwealth's goodwill exceeds its carrying amount; therefore, the two step goodwill impairment test was not considered necessary. The assessment of qualitative factors considered historical and projected financial performance, macroeconomic factors such as the Company's access to capital, the general business climate and changes in the banking industry as well as market considerations such as geographic expansion, new product offerings and the regulatory environment.

As of December 31, 2017, goodwill was not considered impaired; however, changing economic conditions that may adversely affect our performance, the fair value of our assets and liabilities, or our stock price could result in impairment, which could adversely affect earnings in future periods. Management will continue to monitor events that could impact this conclusion in the future.

FASB ASC Topic 350, “Intangibles—Other,” also requires that an acquired intangible asset be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, transferred, licensed, rented or exchanged, regardless of the acquirer’s intent to do so.

The following table summarizes other intangible assets:

	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets
	(dollars in thousands)
December 31, 2017
Customer deposit intangibles	$	19,471	$	(6,071	)	$	13,400
Customer list intangible	$	2,283	$	(751	)	$	1,532
Total other intangible assets	$	21,754	$	(6,822	)	$	14,932
December 31, 2016
Customer deposit intangibles	$	30,471	$	(18,998	)	$	11,473
Customer list intangible	$	984	$	(444	)	$	540
Total other intangible assets	$	31,455	$	(19,442	)	$	12,013

Core deposits are amortized over their expected lives using the present value of the benefit of the core deposits and straight-line methods of amortization. The core deposits have a remaining amortization period of 9.3 years and a weighted average amortization period of approximately 8.9 years. The customer list intangible represents the estimated value of the customer base for an insurance agency acquired in 2014 and the wealth management business acquired as part of the DCB acquisition in 2017. These amounts are amortized over their expected lives using expected cash flows based on retention of the customer base. The customer list intangible has a remaining amortization period of 11.7 years and a weighted average amortization period of 9.9 years. In the table above, the change in the gross customer deposit intangible and customer list intangibles from December 31, 2016 to December 31, 2017 is due to the acquisition of DCB Financial resulting in $4.7 million of core deposit intangibles and $1.3 million of customer list intangibles. In addition, $15.7 million of customer deposit intangibles resulting from an acquisition in 2006 were completely amortized in 2016. In addition to customer deposit intangibles and customer list intangibles, First Commonwealth has $75 thousand in mortgage servicing rights related to the sale of 1-4 family residential mortgages for which we retain servicing. First Commonwealth recognized amortization expense on other intangible assets of $3.1 million, $0.5 million, and $0.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.

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The following presents the estimated amortization expense of core deposit and customer list intangibles:

	Core Deposit Intangibles		Customer List Intangible		Total
	(dollars in thousands)
2018	$	2,714	$	318	$	3,032
2019	2,414		271		2,685
2020	2,062		230		2,292
2021	1,768		193		1,961
2022	1,473		159		1,632
Thereafter	2,969		361		3,330
Total	$	13,400	$	1,532	$	14,932

Note 15—Interest-Bearing Deposits

Components of interest-bearing deposits at December 31 were as follows:

	2017		2016
	(dollars in thousands)
Interest-bearing demand deposits	$	187,281	$	114,043
Savings deposits	3,361,840		2,972,747
Time deposits	614,813		591,832
Total interest-bearing deposits	$	4,163,934	$	3,678,622

Interest-bearing deposits at December 31, 2017 and 2016, include allocations from interest-bearing demand deposit accounts of $919.1 million and $779.2 million, respectively, into savings, which includes money market accounts. These reallocations are based on a formula and have been made to reduce First Commonwealth’s reserve requirement in compliance with regulatory guidelines.

Included in time deposits at December 31, 2017 and 2016, were certificates of deposit in denominations of $100 thousand or more of $210.4 million and $145.4 million, respectively.

Interest expense related to certificates of deposit in denominations of $100 thousand or greater amounted to $1.5 million in 2017, $1.2 million in 2016 and $1.8 million in 2015.

Included in time deposits at December 31, 2017, were certificates of deposit with the following scheduled maturities (dollars in thousands):

2018	$	376,181
2019	144,091
2020	43,463
2021	35,530
2022 and thereafter	15,548
Total	$	614,813

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Note 16—Short-term Borrowings

Short-term borrowings at December 31 were as follows:

	2017						2016						2015
	Ending Balance		Average Balance		Average Rate		Ending Balance		Average Balance		Average Rate		Ending Balance		Average Balance		Average Rate
	(dollars in thousands)
Federal funds purchased	$	—	$	6,225	1.24	%	$	—	$	6,887	0.60	%	$	4,000	$	14,832	0.36	%
Borrowings from FHLB	567,500		710,932		1.18		748,000		1,265,932		0.61		1,400,000		1,117,522		0.42
Securities sold under agreements to repurchase	139,966		150,234		0.24		119,943		114,918		0.23		106,825		120,177		0.23
Total	$	707,466	$	867,391	1.01		$	867,943	$	1,387,737	0.58		$	1,510,825	$	1,252,531	0.40
Maximum total at any month-end	$	967,259					$	1,530,678					$	1,510,825
Weighted average rate at year-end					1.27	%					0.63	%					0.53	%

Interest expense on short-term borrowings for the years ended December 31 is detailed below:

	2017		2016		2015
	(dollars in thousands)
Federal funds purchased	$	77	$	41	$	54
Borrowings from FHLB	8,360		7,765		4,684
Securities sold under agreements to repurchase	362		270		280
Total interest on short-term borrowings	$	8,799	$	8,076	$	5,018

Note 17—Subordinated Debentures

Subordinated Debentures outstanding at December 31 are as follows:

		2017			2016
	Due	Amount		Rate	Amount		Rate
		(dollars in thousands)
Owed to:
First Commonwealth Capital Trust II	2034	$	30,929	LIBOR + 2.85	$	30,929	LIBOR + 2.85
First Commonwealth Capital Trust III	2034	41,238		LIBOR + 2.85	41,238		LIBOR + 2.85
Total		$	72,167		$	72,167

First Commonwealth currently has two trusts, First Commonwealth Capital Trust II and First Commonwealth Capital Trust III, of which 100% of the common equity is owned by First Commonwealth. The trusts were formed for the purpose of issuing company obligated mandatorily redeemable capital securities to third-party investors and investing the proceeds from the sale of the capital securities solely in junior subordinated debt securities (“subordinated debentures”) of First Commonwealth. The subordinated debentures held by each trust are the sole assets of the trust.

Interest on the debentures issued to First Commonwealth Capital Trust III is paid quarterly at a floating rate of LIBOR + 2.85% which is reset quarterly. Subject to regulatory approval, First Commonwealth may redeem the debentures, in whole or in part, at its option on any interest payment date at a redemption price equal to 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of the redemption. Deferred issuance costs of $630 thousand are being amortized on a straight-line basis over the term of the securities.

Interest on the debentures issued to First Commonwealth Capital Trust II is paid quarterly at a floating rate of LIBOR + 2.85%, which is reset quarterly. Subject to regulatory approval, First Commonwealth may redeem the debentures, in whole or in part, at its option at a redemption price equal to 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of the redemption. Deferred issuance costs of $471 thousand are being amortized on a straight-line basis over the term of the securities.

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Note 18—Other Long-term Debt

Other long-term debt at December 31 follows:

	2017				2016
	Amount		Weighted Average Contractual Rate		Amount		Weighted Average Contractual Rate
	(dollars in thousands)
Borrowings from FHLB due:
2017					$	586	3.83	%
2018	$	607	3.83	%	609		3.83
2019	631		3.83		633		3.84
2020	656		3.84		658		3.84
2021	681		3.84		684		3.84
2022	708		3.85
Thereafter	4,878		3.80		5,579		3.81
Total	$	8,161			$	8,749

The weighted average contractual rate reflects the rate due to creditors. There are no purchase accounting adjustments related to long-term debt in 2017 or 2016. Therefore, the weighted average effective rate of long-term debt is equal to the weighted average contractual rate of long-term debt.

All of First Commonwealth’s Federal Home Loan Bank stock, along with an interest in mortgage loans and residential mortgage backed securities, has been pledged as collateral with the Federal Home Loan Bank of Pittsburgh.

Capital securities included in total long-term debt on the Consolidated Statements of Financial Condition are excluded from the above, but are described in Note 17, “Subordinated Debentures.”

Note 19—Fair Values of Assets and Liabilities

FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosures for non-financial assets and non-financial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). All non-financial assets are included either as a separate line item on the Consolidated Statements of Financial Condition or in the “Other assets” category of the Consolidated Statements of Financial Condition. Currently, First Commonwealth does not have any non-financial liabilities to disclose.

FASB ASC Topic 825, “Financial Instruments,” permits entities to irrevocably elect to measure select financial instruments and certain other items at fair value. The unrealized gains and losses are required to be included in earnings each reporting period for the items that fair value measurement is elected. First Commonwealth has elected not to measure any existing financial instruments at fair value under FASB ASC Topic 825; however, in the future we may elect to adopt this guidance for select financial instruments.

In accordance with FASB ASC Topic 820, First Commonwealth groups financial assets and financial liabilities measured at fair value in three levels, based on the principal markets in which the assets and liabilities are transacted and the observability of the data points used to determine fair value. These levels are:

• Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange (“NYSE”). Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

• Level 2—Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained for identical or comparable assets or liabilities from alternative pricing sources with reasonable levels of price transparency. Level 2 includes Obligations of U.S. Government securities issued by Agencies and Sponsored Enterprises, Obligations of States and Political Subdivisions, certain corporate securities, FHLB stock, loans held for sale, interest rate derivatives (including interest rate swaps, interest rate caps and risk participation agreements), certain other real estate owned and certain impaired loans.

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Level 2 investment securities are valued by a recognized third party pricing service using observable inputs. The model used by the pricing service varies by asset class and incorporates available market, trade and bid information as well as cash flow information when applicable. Because many fixed-income investment securities do not trade on a daily basis, the model uses available information such as benchmark yield curves, benchmarking of like investment securities, sector groupings and matrix pricing. The model will also use processes such as an option-adjusted spread to assess the impact of interest rates and to develop prepayment estimates. Market inputs normally used in the pricing model include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications.

Management validates the market values provided by the third party service by having another recognized pricing service price 100% of the securities on an annual basis and a random sample of securities each quarter, monthly monitoring of variances from prior period pricing and, on a monthly basis, evaluating pricing changes compared to expectations based on changes in the financial markets.

Other Investments are comprised of FHLB stock whose estimated fair value is based on its par value. Additional information on FHLB stock is provided in Note 10, “Impairment of Investment Securities.”

Loans held for sale include residential mortgage loans originated for sale in the secondary mortgage market. The estimated fair value for these loans was determined on the basis of rates obtained in the respective secondary market. This category also includes the Small Business Administration guaranteed portion of small business loans. The estimated fair value of these loans is based on the contract with the third party investor.

Interest rate derivatives are reported at estimated fair value utilizing Level 2 inputs and are included in Other assets and Other liabilities in the Consolidated Statements of Financial Condition. These consist of interest rate swaps where there is no significant deterioration in the counterparties' (loan customers') credit risk since origination of the interest rate swap as well as interest rate caps and risk participation agreements. First Commonwealth values its interest rate swap and cap positions using a yield curve by taking market prices/rates for an appropriate set of instruments. The set of instruments currently used to determine the U.S. Dollar yield curve includes cash LIBOR rates from overnight to one year, Eurodollar futures contracts and swap rates from one year to thirty years. These yield curves determine the valuations of interest rate swaps. Interest rate derivatives are further described in Note 8, “Derivatives.”

For purposes of potential valuation adjustments to our derivative positions, First Commonwealth evaluates the credit risk of its counterparties as well as our own credit risk. Accordingly, we have considered factors such as the likelihood of default, expected loss given default, net exposures and remaining contractual life, among other things, in determining if any estimated fair value adjustments related to credit risk are required. We review our counterparty exposure quarterly, and when necessary, appropriate adjustments are made to reflect the exposure.

We also utilize this approach to estimate our own credit risk on derivative liability positions. In 2017 and 2016, we have not realized any losses due to a counterparty's inability to pay any net uncollateralized position.

Interest rate derivatives also include interest rate forwards entered into to hedge residential mortgage loans held for sale and the related interest-rate lock commitments. This includes forward commitments to sell mortgage loans. The fair value of these derivative financial instruments are based on derivative market data inputs as of the valuation date and the underlying value of mortgage loans for rate lock commitments.

In addition, the Company hedges foreign currency risk through the use of foreign exchange forward contracts. The fair value of foreign exchange forward contracts is based on the differential between the contract price and the market-based forward rate.

The estimated fair value for other real estate owned included in Level 2 is determined by either an independent market based appraisal less estimated costs to sell or an executed sales agreement.

• Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. If the inputs used to provide the valuation are unobservable and/or there is very little, if any, market activity for the security or similar securities, the securities would be considered Level 3 securities. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The assets included in Level 3 are pooled trust preferred collateralized debt obligations, non-marketable equity investments, certain interest rate derivatives, certain impaired loans and certain other real estate.

Our pooled trust preferred collateralized debt obligations are collateralized by the trust preferred securities of individual banks, thrifts and bank holding companies in the United States. There has been little or no active trading in these securities since 2009; therefore, it was more appropriate to determine estimated fair value using a discounted cash flow analysis. Detail on the process for determining the appropriate cash flows for this analysis is provided in Note 10 “Impairment of Investment Securities.” The

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discount rate applied to the cash flows is determined by evaluating the current market yields for comparable corporate and structured credit products along with an evaluation of the risks associated with the cash flows of the comparable security. Due to the fact that there is no active market for the pooled trust preferred collateralized debt obligations, one key reference point is the market yield for the single issue trust preferred securities issued by banks and thrifts for which there is more activity than for the pooled securities. Adjustments are then made to reflect the credit and structural differences between these two security types.

Management validates the estimated fair value of the pooled trust preferred collateralized debt obligations by monitoring the performance of the underlying collateral, discussing the discount rate, cash flow assumptions and general market trends with the specialized third party and confirming changes in the underlying collateral to the trustee reports. Management’s monitoring of the underlying collateral includes deferrals of interest payments, payment defaults, cures of previously deferred interest payments, any regulatory filings or actions and general news related to the underlying collateral. Management also evaluates fair value changes compared to expectations based on changes in the interest rates used in determining the discount rate and general financial markets.

The estimated fair value of the non-marketable equity investments included in Level 3 is based on par value.

The estimated fair value of limited partnership investments included in Level 3 is based on par value.

For interest rate derivatives included in Level 3, the fair value incorporates credit risk by considering such factors as likelihood of default and expected loss given default based on the credit quality of the underlying counterparties (loan customers).

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)
Pooled Trust Preferred Securities	$	23,646		Discounted Cash Flow	Probability of default	0.00% - 100% (8.98%)
					Prepayment rates	0.00% - 72.02% (4.46%)
					Discount rates	5.00% - 11.50% (a)
Equities	1,670			Par Value	N/A	N/A
Impaired Loans	1,336		(b)	Gas Reserve study	Discount rate	10.00%
					Gas per MMBTU	$2.87 - $3.61 (c)
					Oil per BBL/d	$56.05 - $57.65 (c)
	6,820		(b)	Discounted Cash Flow	Discount Rate	1.90% - 4.68%
Limited Partnership Investments	2,143			Par Value	N/A	N/A

(a) incorporates spread over the risk free rate related primarily to credit quality and illiquidity of securities.

(b) the remainder of impaired loans valued using Level 3 inputs are not included in this disclosure as the values of those loans are based on bankruptcy agreement documentation.

(c) unobservable inputs are defined as follows: MMBTU—one million British thermal units; BBL/d—barrels per day.

The significant unobservable inputs used in the fair value measurement of pooled trust preferred securities are the probability of default, discount rates and prepayment rates. Significant increases in the probability of default or discount rate used would result in a decrease in the estimated fair value of these securities, while decreases in these variables would result in higher fair value measurements. In general, a change in the assumption of probability of default is accompanied by a directionally similar change in the discount rate. In most cases, increases in the prepayment rate assumptions would result in a higher estimated fair value for these securities while decreases would provide for a lower value. The direction of this change is somewhat dependent on the structure of the investment and the amount of the investment tranches senior to our position.

The discount rate is the significant unobservable input used in the fair value measurement of impaired loans. Significant increases in this rate would result in a decrease in the estimated fair value of the loans, while a decrease in this rate would result in a higher fair value measurement. Other unobservable inputs in the fair value measurement of impaired loans relate to gas, oil and natural gas prices. Increases in these prices would result in an increase in the estimated fair value of the loans, while a decrease in these prices would result in a lower fair value measurement.

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The tables below present the balances of assets and liabilities measured at fair value on a recurring basis at December 31:

	2017
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—	$	11,338	$	—	$	11,338
Mortgage-Backed Securities—Commercial	—		24,149		—		24,149
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—		625,555		—		625,555
Mortgage-Backed Securities—Commercial	—		—		—		—
Other Government-Sponsored Enterprises	—		1,097		—		1,097
Obligations of States and Political Subdivisions	—		27,410		—		27,410
Corporate Securities	—		16,493		—		16,493
Pooled Trust Preferred Collateralized Debt Obligations	—		—		23,646		23,646
Total Debt Securities	—		706,042		23,646		729,688
Equities	—		—		1,670		1,670
Total Securities Available for Sale	—		706,042		25,316		731,358
Other Investments	—		29,837		—		29,837
Loans Held for Sale	—		14,850		—		14,850
Other Assets (a)	—		1,778		2,143		3,921
Total Assets	$	—	$	752,507	$	27,459	$	779,966
Other Liabilities (a)	$	—	$	3,079	$	—	$	3,079
Total Liabilities	$	—	$	3,079	$	—	$	3,079

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

	2016
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—	$	16,617	$	—	$	16,617
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—		676,853		—		676,853
Mortgage-Backed Securities—Commercial	—		1		—		1
Other Government-Sponsored Enterprises	—		16,631		—		16,631
Obligations of States and Political Subdivisions	—		27,229		—		27,229
Corporate Securities	—		6,319		—		6,319
Pooled Trust Preferred Collateralized Debt Obligations	—		—		33,292		33,292
Total Debt Securities	—		743,650		33,292		776,942
Equities	—		—		1,670		1,670
Total Securities Available for Sale	—		743,650		34,962		778,612
Other Investments	—		36,498		—		36,498
Loans Held for Sale	—		7,052		—		7,052
Other Assets (a)	—		6,089		930		7,019
Total Assets	$	—	$	793,289	$	35,892	$	829,181
Other Liabilities (a)	$	—	$	5,972	$	—	$	5,972
Total Liabilities	$	—	$	5,972	$	—	$	5,972

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

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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, 2017:

	Pooled Trust Preferred Collateralized Debt Obligations			Equities		Other Assets		Total
	(dollars in thousands)
Balance, beginning of year	$	33,292		$	1,670	$	930	$	35,892
Total gains or losses
Included in earnings	4,329			—		—		4,329
Included in other comprehensive income	3,725			—		—		3,725
Purchases, issuances, sales, and settlements
Purchases	—			—		1,213		1,213
Issuances	—			—		—		—
Sales	—			—		—		—
Settlements	(17,700		)	—		—		(17,700		)
Transfers from Level 3	—			—		—		—
Transfers into Level 3	—			—		—		—
Balance, end of year	$	23,646		$	1,670	$	2,143	$	27,459

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, 2017.

During the year ended December 31, 2017, 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, 2016:

		Pooled Trust Preferred Collateralized Debt Obligations			Equities			Other Assets		Total
	(dollars in thousands)
Balance, beginning of year		$	35,658		$	2,170		$	—	$	37,828
Total gains or losses
Included in earnings		589			—			—		589
Included in other comprehensive income		850			—			—		850
Purchases, issuances, sales, and settlements
Purchases		—			36			394		430
Issuances		—			—			—		—
Sales		—			—			—		—
Settlements		(3,805		)	—			—		(3,805		)
Transfers from Level 3		—			(536		)	—		(536		)
Transfers into Level 3		—			—			536		536
Balance, end of year		$	33,292		$	1,670		$	930	$	35,892

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, 2016.

During the year ended December 31, 2016, $0.5 million in investments in limited partnerships were moved from other equity securities to other assets constituting the transfers into and out of Level 3. There were no transfers between fair value Levels 1 and 2.

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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:

	2017
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Impaired loans	$	—	$	23,249	$	15,245	$	38,494	$	(1,548	)
Other real estate owned	—		3,264		—		3,264		(1,099		)
Total Assets	$	—	$	26,513	$	15,245	$	41,758	$	(2,647	)

	2016
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Impaired loans	$	—	$	18,679	$	19,990	$	38,669	$	(9,032	)
Other real estate owned	—		7,566		—		7,566		(703		)
Total Assets	$	—	$	26,245	$	19,990	$	46,235	$	(9,735	)

Impaired loans over $100 thousand are individually reviewed to determine the amount of each loan considered to be at risk of noncollection. The fair value for impaired loans that are collateral based is determined by reviewing real property appraisals, equipment valuations, accounts receivable listings and other financial information. A discounted cash flow analysis is performed to determine fair value for impaired loans when an observable market price or a current appraisal is not available. For real estate secured loans, First Commonwealth’s loan policy requires updated appraisals be obtained at least every twelve months on all impaired loans with balances of $250 thousand and over. For real estate secured loans with balances under $250 thousand, we rely on broker price opinions. For non-real estate secured assets, the Company normally relies on third party valuations specific to the collateral type.

The fair value for other real estate owned, determined by either an independent market based appraisal less estimated costs to sell or an executed sales agreement, is classified as Level 2. The fair value for other real estate owned determined using an internal valuation is classified as Level 3. Other real estate owned has a current carrying value of $2.8 million as of December 31, 2017 and consisted primarily of commercial real estate properties in Pennsylvania. We review whether events and circumstances subsequent to a transfer to other real estate owned have occurred that indicate the balance of those assets may not be recoverable. If events and circumstances indicate further impairment, we will record a charge to the extent that the carrying value of the assets exceed their fair values, less estimated costs to sell, as determined by valuation techniques appropriate in the circumstances.

Certain other assets and liabilities, including goodwill, core deposit intangibles and customer list intangibles are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. Additional information related to this measurement is provided in Note 14 “Goodwill and Other Amortizing Intangible Assets.” There were no other assets or liabilities measured at fair value on a nonrecurring basis during 2017.

FASB ASC Topic 825-10, “Transition Related to FSP FAS 107-1” and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or nonrecurring basis are as discussed above. The methodologies for other financial assets and financial liabilities are discussed below.

Cash and due from banks and interest bearing bank deposits: The carrying amounts for cash and due from banks and interest-bearing bank deposits approximate the estimated fair values of such assets.

Securities: Fair values for available for sale and held to maturity securities are based on quoted market prices, if available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Pooled trust preferred collateralized debt obligation values are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and are not based on market exchange, dealer or broker traded transactions. These valuations incorporate certain assumptions and projections in determining the fair value assigned to each

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instrument. The carrying value of other investments, which includes FHLB stock, is considered a reasonable estimate of fair value.

Loans held for sale: The estimated fair value of loans held for sale is based on market bids obtained from potential buyers.

Loans: The fair values of all loans are estimated by discounting the estimated future cash flows using interest rates currently offered for loans with similar terms to borrowers of similar credit quality adjusted for past due and nonperforming loans, which is not an exit price under FASB ASC Topic 820, “Fair Value Measurements and Disclosures.”

Off-balance sheet instruments: Many of First Commonwealth’s off-balance sheet instruments, primarily loan commitments and standby letters of credit, are expected to expire without being drawn upon; therefore, the commitment amounts do not necessarily represent future cash requirements. FASB ASC Topic 460, “Guarantees,” clarified that a guarantor is required to recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. The carrying amount and estimated fair value for standby letters of credit was $0.2 million at both December 31, 2017 and 2016, respectively. See Note 12, “Commitments and Letters of Credit,” for additional information.

Deposit liabilities: The estimated fair value of demand deposits, savings accounts and money market deposits is the amount payable on demand at the reporting date because of the customers' ability to withdraw funds immediately. The carrying value of variable rate time deposit accounts and certificates of deposit approximate the fair value at the report date. Also, fair values of fixed rate time deposits for both periods are estimated by discounting the future cash flows using interest rates currently being offered and a schedule of aggregated expected maturities.

Short-term borrowings: The fair values of borrowings from the FHLB were estimated based on the estimated incremental borrowing rate for similar types of borrowings. The carrying amounts of other short-term borrowings, such as federal funds purchased and securities sold under agreement to repurchase, were used to approximate fair value due to the short-term nature of the borrowings.

Subordinated debt, long-term debt and capital lease obligation: The fair value of long-term debt and subordinated debt is estimated by discounting the future cash flows using First Commonwealth’s estimate of the current market rate for similar types of borrowing arrangements.

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The following table presents carrying amounts and estimated fair values of First Commonwealth’s financial instruments at December 31:

	2017
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	98,624	$	98,624	$	98,624	$	—	$	—
Interest-bearing deposits	8,668		8,668		8,668		—		—
Securities available for sale	731,358		731,358		—		706,042		25,316
Securities held to maturity	422,096		418,249		—		418,249		—
Other investments	29,837		29,837		—		29,837		—
Loans held for sale	14,850		14,850		—		14,850		—
Loans	5,407,376		5,443,434		—		23,249		5,420,185
Financial liabilities
Deposits	5,580,705		5,580,812		—		5,580,812		—
Short-term borrowings	707,466		707,263		—		707,263		—
Long-term debt	8,161		8,548		—		8,548		—
Subordinated debt	72,167		65,785		—		—		65,785
Capital lease obligation	7,590		7,590		—		7,590		—

	2016
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	91,033	$	91,033	$	91,033	$	—	$	—
Interest-bearing deposits	24,644		24,644		24,644		—		—
Securities available for sale	778,612		778,612		—		743,650		34,962
Securities held to maturity	372,513		368,618		—		368,618		—
Other investments	36,498		36,498		—		36,498		—
Loans held for sale	7,052		7,052		—		7,052		—
Loans	4,879,347		4,878,254		—		18,679		4,859,575
Financial liabilities
Deposits	4,947,408		4,949,714		—		4,949,714		—
Short-term borrowings	867,943		867,667		—		867,667		—
Long-term debt	8,749		9,169		—		9,169		—
Subordinated debt	72,167		65,656		—		—		65,656

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Note 20—Income Taxes

The income tax provision for the years ended December 31 is as follows:

	2017			2016			2015
	(dollars in thousands)
Current tax provision
Federal	$	29,071		$	19,879		$	8,610
State	274			154			68
Total current tax provision	29,345			20,033			8,678
Deferred tax provision (benefit):
Federal	19,237			5,846			12,158
State	(21		)	(240		)	—
Total deferred tax provision	19,216			5,606			12,158
Total tax provision	$	48,561		$	25,639		$	20,836

The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:

	2017					2016					2015
	Amount			% of Pretax Income		Amount			% of Pretax Income		Amount			% of Pretax Income
	(dollars in thousands)
Tax at statutory rate	$	36,304		35	%	$	29,830		35	%	$	24,843		35	%
Increase (decrease) resulting from:
State income tax, net of federal benefit	164			—		(56		)	—		44			—
Income from bank owned life insurance	(1,995		)	(2	)	(1,883		)	(2	)	(1,894		)	(3	)
Tax-exempt interest income, net	(2,709		)	(3	)	(2,434		)	(3	)	(2,232		)	(3	)
Tax credits	(11		)	—		—			—		(61		)	—
Enactment of federal tax reform	16,709			17		—			—		—			—
Other	99			—		182			—		136			—
Total tax provision	$	48,561		47	%	$	25,639		30	%	$	20,836		29	%

The total tax provision for financial reporting differs from the amount computed by applying the statutory federal income tax rate to income before taxes. First Commonwealth ordinarily generates an annual effective tax rate that is less than the statutory rate of 35% due to benefits resulting from tax-exempt interest, income from bank owned life insurance, and tax benefits associated with low-income housing tax credits. The consistent level of tax benefits that reduce First Commonwealth’s tax rate below the 35% statutory rate produced an annual effective tax rate of 30% and 29% for the years ended December 31, 2016 and 2015, respectively. The annual effective tax rate is 47% for the year ended December 31, 2017, which is greater than the 35% statutory rate due to the enactment of federal tax reform.

On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act reduces the corporate federal tax rate from 35% to 21% effective January 1, 2018. As a result we are required to re-measure, through income tax expense, our deferred tax assets and liabilities using the enacted rate at which we expect them to be recovered or settled. The re-measurement of our net deferred tax asset resulted in additional income tax expense of $16.7 million.

Also on December 22, 2017, the U.S. Securities and Exchange Commission (“SEC”) released Staff Accounting Bulletin No. 118 (“SAB 118”) to address any uncertainty or diversity of views in practice in accounting for the income tax effects of the Act in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete this accounting in the reporting period that includes the enactment date. SAB 118 allows for a measurement period not to extend beyond one year from the Act’s enactment date to complete the necessary accounting.

We recorded provisional amounts of deferred income taxes using reasonable estimates in three areas where information necessary to complete the accounting was not available, prepared, or analyzed: 1) Our deferred tax liability for temporary

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differences between the tax and financial reporting bases of fixed assets principally due to the accelerated depreciation under the Act which allows for full expensing of qualified property purchased and placed in service after September 27, 2017. 2) Our deferred tax asset for temporary differences associated with accrued compensation will be finalized with payments made on or before March 15, 2018 and deducted on the 2017 income tax returns. 3) Our deferred tax assets and liabilities acquired from DCB Financial are awaiting completion of the final short period tax return from outside preparers, which is necessary to confirm the final acquired temporary differences.

In a fourth area, we made no adjustments to deferred tax assets representing future deductions for accrued compensation that may be subject to new limitations under Internal Revenue Code 162(m) which, generally, limits the annual deduction for certain compensation paid to employees to $1 million. There is uncertainty in applying the newly-enacted rules to existing contracts, and we are seeking further clarifications before completing our analysis.

The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below:

	2017			2016
	(dollars in thousands)
Deferred tax assets:
Allowance for credit losses	$	10,223		$	17,616
Postretirement benefits other than pensions	345			611
Alternative minimum tax credit carryforward	201			—
Unrealized loss on securities available for sale	2,091			3,905
Net operating loss carryforward	6,145			—
Writedown of other real estate owned	878			1,266
Deferred compensation	1,514			1,966
Accrued interest on nonaccrual loans	1,017			1,701
Accrued incentives	1,277			2,627
Unfunded loan commitments & other reserves	1,098			1,452
Deferred rent	801			1,285
Other	1,224			1,966
Total deferred tax assets	26,814			34,395
Deferred tax liabilities:
Income from unconsolidated subsidiary	(380		)	(623		)
Depreciation of assets	(587		)	(28		)
Other	(338		)	(429		)
Total deferred tax liabilities	(1,305		)	(1,080		)
Net deferred tax asset	$	25,509		$	33,315

The Company has approximately $29.0 million of federal net operating losses and $0.2 million of AMT carryforwards which are subject to an annual limitation under IRC Section 382. The net operating losses expire in 2030 and the Company expects to utilize the losses prior to expiration.

Management assesses all available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. Based on our evaluation, as of December 31, 2017, management has determined that no valuation allowance is necessary for the deferred tax assets because it is more likely than not that these assets will be realized through future reversals of existing temporary differences and future taxable income.

In accordance with FASB ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes”, the Company has no material unrecognized tax benefits or accrued interest and penalties as of December 31, 2017. We do not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. The Company records interest and penalties on unrecognized tax benefits as a component of noninterest expense.

First Commonwealth is subject to routine audits of our tax returns by the Internal Revenue Service (“IRS”) as well as all states in which we conduct business. During 2015, the IRS completed an examination of our 2013 federal tax return. The

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examination was closed with no adjustments. Generally, tax years prior to the year ended December 31, 2014 are no longer open to examination by federal and state taxing authorities.

Note 21—Retirement Plans

First Commonwealth has a savings plan pursuant to the provisions of section 401(k) of the Internal Revenue code. Effective January 1, 2013, a participating employee can receive a maximum matching contribution of 6% of their compensation. In addition, each participating employee may contribute up to 80% of their eligible compensation to the plan. The 401(k) plan expense was $2.8 million in 2017, $2.5 million in 2016, and $2.7 million in 2015.

First Commonwealth maintains a Non-Qualified Deferred Compensation Plan (“NQDC Plan”) to provide deferred compensation for those employees whose total annual or annualized Plan compensation for a calendar year is at least $110,000. The NQDC Plan provides participants whose maximum retirement contribution is limited by IRS rules to defer additional compensation.

Participants in the NQDC Plan are eligible to defer (on a pre-tax basis) from 1% to 25% of their eligible Plan compensation. There was no NQDC Plan expense in 2017, 2016 and 2015.

Select employees from former acquisitions were covered by postretirement benefit plans which provide medical and life insurance coverage. The measurement date for these plans was December 31.

Postretirement Benefits Other than Pensions from Prior Acquisitions

Net periodic benefit cost of these plans for the years ended December 31, was as follows:

	2017			2016			2015
	(dollars in thousands)
Service cost	$	—		$	—		$	—
Interest cost on projected benefit obligation	49			67			62
Amortization of transition obligation	—			—			—
Gain amortization	(21		)	(7		)	(4		)
Net periodic benefit cost	$	28		$	60		$	58

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The following table sets forth the change in the benefit obligation and plan assets as of December 31:

	2017			2016
	(dollars in thousands)
Change in Benefit Obligation
Benefit obligation at beginning of year	$	1,394		$	1,815
Service cost	—			—
Interest cost	49			67
Amendments	—			—
Actuarial gain	(116		)	(337		)
Net benefits paid	(133		)	(151		)
Benefit obligation at end of year	1,194			1,394
Change in Plan Assets
Fair value of plan assets at beginning of year	—			—
Actual return on plan assets	—			—
Employer contributions	133			151
Net benefits paid	(133		)	(151		)
Fair value of plan assets at end of year	—			—
Funded Status at End of Year	1,194			1,394
Unrecognized transition obligation	—			—
Unrecognized net gain	440			345
Amounts recognized in retained earnings	$	1,634		$	1,739

As of December 31, the funded status of the plan is:

	2017		2016
	(dollars in thousands)
Amounts Recognized in the Statement of Financial Condition as Other liabilities	$	1,194	$	1,394

The following table sets forth the amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit costs as of December 31:

	2017			2016			2015
	(dollars in thousands)
Amounts recognized in accumulated other comprehensive income, net of tax:
Net (gain) loss	$	(347	)	$	(225	)	$	(10	)
Transition obligation	—			—			—
Total	$	(347	)	$	(225	)	$	(10	)

Weighted-average assumptions used to determine the benefit obligation as of December 31 are as follows:

	2017		2016		2015
Weighted-average Assumptions
Discount rate	3.37	%	3.74	%	3.88	%
Health care cost trend: Initial	6.00	%	6.00	%	6.25	%
Health care cost trend: Ultimate	4.75	%	4.75	%	4.75	%
Year ultimate reached	2023		2022		2022

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Weighted-average assumptions used to determine the net benefit costs as of December 31 are as follows:

	2017		2016		2015
Weighted Average Assumptions for Net Periodic Cost
Discount rate	3.74	%	3.88	%	3.61	%
Health care cost trend: Initial	6.00	%	6.25	%	6.50	%
Health care cost trend: Ultimate	4.75	%	4.75	%	4.75	%
Year ultimate reached	2022		2022		2022
Corridor	10.00	%	10.00	%	10.00	%
Recognition period for gains and losses	11.0		11.0		11.0

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”) introduced a prescription drug benefit under Medicare Part D and a federal subsidy to sponsors of retiree health care benefit plans that provide a prescription drug benefit that is at least actuarially equivalent to Medicare Part D. The postretirement plans of First Commonwealth are provided through insurance coverage; therefore, First Commonwealth will not receive a direct federal subsidy. The preceding measures of the accumulated postretirement benefit cost assume that First Commonwealth will not receive the subsidy due to the relatively small number of retirees.

The health care cost trend rate assumption can have a significant impact on the amounts reported for this plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

	One-Percentage- Point Increase		One-Percentage- Point Decrease
	(dollars in thousands)
Effect on postretirement benefit obligation	$	29	$	(27	)
Effect on total of service and interest cost components	2		(2		)

As of December 31, 2017, the projected benefit payments for the next ten years are as follows:

	Projected Benefit         Payments
	(dollars in thousands)
2018	$	152
2019	128
2020	122
2021	115
2022	107
2023 - 2027	422

The projected payments were calculated using the same assumptions as those used to calculate the benefit obligations included in this note.

The estimated costs that will be amortized from accumulated other comprehensive income into net periodic cost for 2018 are as follows (dollars in thousands):

	Postretirement Benefits
	(dollars in thousands)
Net gain	$	(35	)
Transition obligation	—
Total	$	(35	)

Note 22—Incentive Compensation Plan

On January 20, 2009, the Board of Directors of the Company adopted, with shareholder approval, the First Commonwealth Financial Corporation Incentive Compensation Plan. This plan allows for shares of common stock to be issued to employees, directors, and consultants of the Company and its subsidiaries as an incentive to aid in the financial success of the Company.

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The shares can be issued as options, stock appreciation rights, performance share or unit awards, dividend or dividend equivalent rights, stock awards, restricted stock awards, or other annual incentive awards. Up to 5,000,000 shares of stock can be awarded under this plan, of which 3,365,572 shares were still eligible for awards as of December 31, 2017.

Restricted Stock

The following provides detail on the restricted stock awards which were issued and outstanding in 2017, 2016 and 2015 in order to retain and attract key employees. The grant date fair value of the restricted stock awards is equal to the price of First Commonwealth’s common stock on grant date.

Grant Date	Shares issued	Grant Price		Vesting Date	Number of Equal Vesting Periods
March 24, 2017	5,000	$	12.99	March 24, 2020	1
March 24, 2017	7,000	12.99		August 31, 2017	1
March 24, 2017	7,000	12.99		March 24, 2020	1
March 24, 2017	7,000	12.99		August 31, 2017	1
December 19, 2016	15,000	13.96		December 19, 2019	3
September 30, 2016	10,000	10.09		September 30, 2019	1
September 19, 2016	33,000	10.02		September 19, 2019	3
June 7, 2016	10,000	9.34		June 7, 2019	1
March 1, 2016	10,000	8.84		March 1, 2019	1
March 1, 2016	5,000	8.84		March 1, 2019	1
March 1, 2016	20,000	8.84		August 31, 2017	1
February 18, 2016	18,348	8.43		December 31, 2016	1
June 26, 2015	1,000	9.84		June 26, 2018	1
February 20, 2015	10,000	8.45		August 31, 2017	1
February 20, 2015	34,200	8.45		December 31, 2015	1
February 5, 2015	50,000	8.55		February 5, 2018	1
January 29, 2015	20,170	7.93		December 31, 2015	1
January 15, 2015	20,000	8.38		January 15, 2017	1
November 17, 2014	3,500	9.26		November 17, 2017	1
April 8, 2014	27,500	8.89		April 8, 2017	3
March 24, 2014	46,000	9.18		March 24, 2017	1
March 4, 2014	5,000	8.75		March 4, 2017	1
January 1, 2014	12,626	8.82		December 31, 2014	1
August 16, 2013	3,000	7.57		August 16, 2016	1
May 31, 2013	45,000	7.21		May 31, 2016	3
March 1, 2013	10,000	7.35		March 1, 2016	1
February 24, 2012	34,000	5.96		December 31, 2014	1
February 24, 2012	90,000	5.96		February 24, 2015	1
January 1, 2012	100,000	5.26		January 1, 2016	4
November 21, 2011	10,000	4.41		November 21, 2014	1
April 1, 2011	25,000	6.82		April 1, 2016	1

Compensation expense related to restricted stock was $3.8 million, $3.2 million and $1.4 million in 2017, 2016 and 2015, respectively. As of December 31, 2017, there was $3.0 million of unrecognized compensation cost related to unvested restricted stock awards granted.

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A summary of the status of First Commonwealth’s unvested service-based restricted stock awards as of December 31 and changes for the years ended on those dates is presented below:

	2017				2016				2015
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Outstanding, beginning of the year	247,668		$	9.34	231,834		$	8.01	265,000		$	7.08
Granted	26,000		12.99		121,348		9.88		135,370		8.41
Vested	(151,668	)	9.49		(105,514	)	7.04		(168,536	)	6.87
Forfeited	(5,000	)	8.55		—		—		—		—
Outstanding, end of the year	117,000		9.99		247,668		9.34		231,834		8.01

The following provides detail on restricted stock awards estimated to be granted on a performance award basis during 2017, 2016 and 2015. These plans were previously approved by the Board of Directors.

Grant Date	Target Share Award	Performance Period (years)	Award if threshold met		Award if targets are met		Award if superior met		Award if threshold not achieved		Vesting After Performance Period (years)	Final vesting
February 24, 2012	68,000	3	40	%	100	%	200	%	—	%	1	December 31, 2015
January 28, 2013	128,611	3	40	%	100	%	200	%	—	%	1	December 31, 2016
January 27, 2014	125,000	3	40	%	100	%	200	%	—	%	0	December 31, 2016
January 26, 2015	125,000	3	40	%	100	%	200	%	—	%	0	December 31, 2017
December 30, 2015	60,000	5									0	December 31, 2020
February 18, 2016	160,650	3	40	%	100	%	200	%	—	%	0	December 31, 2018
February 23, 2017	93,500	3	40	%	100	%	200	%	—	%	0	December 31, 2019

The following table summarizes the estimated unvested target share awards for the Plans as of December 31:

	2017		2016		2015
Outstanding, beginning of the year	426,596		320,705		284,000
Granted	276,442		176,936		185,000
Issued	(171,637	)	(18,348	)	(34,200	)
Forfeited	(6,356	)	(52,697	)	(114,095	)
Outstanding, end of the year	525,045		426,596		320,705

The unvested target awards for the Plans have an estimated fair value of $14.32 per share for the January 26, 2015 and February 18, 2016 grants based on the closing price of Company stock as of December 31, 2017. The December 30, 2015 grant has a fair value of $9.18 based the closing stock price when the shares were granted. Based on a Monte Carlo simulation, the February 23, 2017 grant has a fair value of $13.29 per share for 75% of the grant and$15.09 per share for 25% of the grant.

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Note 23—Contingent Liabilities

Legal proceedings

First Commonwealth and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. As of December 31, 2017, management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against First Commonwealth or its subsidiaries will be material to First Commonwealth’s consolidated financial position. On at least a quarterly basis, First Commonwealth assesses its liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that First Commonwealth will incur losses and the amounts of the losses can be reasonably estimated, First Commonwealth records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability (if any), is between $0 and $7 million. Although First Commonwealth does not believe that the outcome of pending litigation will be material to First Commonwealth’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations and cash flows for a particular reporting period in the future.

First Commonwealth Financial Corporation and First Commonwealth Bank were named defendants in an action commenced August 27, 2015 by eight named plaintiffs that is pending in the Court of Common Pleas of Jefferson County, Pennsylvania.  The plaintiffs allege that the Bank repossessed motor vehicles, sold the vehicles and sought to collect deficiency balances in a manner that did not comply with the notice requirements of the Pennsylvania Uniform Commercial Code (UCC), charged inappropriate costs and fees, including storage costs for dates that a repossessed vehicle was not in storage, and wrongly filed forms with the Department of Motor Vehicles asserting that the Bank had complied with applicable laws relating to the repossession of the vehicles. The plaintiffs seek to pursue the action as a class action on behalf of the named plaintiffs and other similarly situated plaintiffs who had their automobiles repossessed and seek to recover damages under the UCC and the Pennsylvania Fair Credit Extension Uniformity Act. First Commonwealth and the Bank contest the plaintiffs’ allegations and intend to oppose class certification.  The Bank has also asserted counterclaims for breach of contract, set-off and recoupment against the plaintiffs, individually, and as representatives of the putative class. The Bank and counsel for the plaintiffs reached an agreement-in-principle to settle the litigation during the second quarter of 2016. The parties are negotiating the terms of a definitive settlement agreement which would be subject to court approval and other customary conditions. The estimated cost of the settlement to the Bank was recorded as a liability in the second quarter of 2016. As set forth in the preceding paragraph, all current litigation matters, including this action, are believed to be within the range of reasonably possible losses set forth in the preceding paragraph. 

Note 24—Related Party Transactions

Some of First Commonwealth’s directors, executive officers, principal shareholders and their related interests had transactions with the subsidiary bank in the ordinary course of business. All deposit and loan transactions were made on substantially the same terms, such as collateral and interest rates, as those prevailing at the time for comparable transactions. In the opinion of management, these transactions do not involve more than the normal risk of collectability nor do they present other unfavorable features. It is anticipated that similar transactions will be entered into in the future.

The following is an analysis of loans to related parties (dollars in thousands):

December 31, 2016	$	1,164
Advances	740
Repayments	(1,127		)
Other	4,871
December 31, 2017	$	5,648

Note 25—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

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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.

First Commonwealth maintains capital to absorb unexpected losses. In order to provide assurance that our capital levels are adequate for our risk exposure we test our capital position under several stress scenarios on an annual basis. This analysis is subject to Board of Director review and approval. Our most recent capital stress test was completed in September 2017.

Effective January 1, 2015, the Company became subject to new regulatory risk-based capital rules adopted by the federal banking agencies implementing Basel III. The most significant changes include higher minimum capital requirements, as the minimum Tier I capital ratio increased from 4.0% to 6.0%, and a new common equity Tier I capital ratio was established with a minimum level of 4.5%. Additionally, the new rules improve the quality of capital by providing stricter eligibility criteria for regulatory capital instruments and provide for a phase-in, beginning January 1, 2016, of a capital conservation buffer of 2.5% of risk-weighted assets. This buffer provides a requirement to hold common equity Tier 1 capital above the minimum risk-based capital requirements, resulting in an effective common equity Tier I risk-weighted asset minimum ratio of 7% on a fully phased-in basis.

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.

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As of December 31, 2017 and 2016, First Commonwealth and First Commonwealth Bank met all capital adequacy requirements to which they are subject and was considered well-capitalized under the regulatory rules, all on a fully phased-in basis. 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 forth in the table below:

	Actual				Minimum Capital Required - Basel III Phase-In Schedule				Minimum Capital Required - Basel III Fully Phased-In				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(dollars in thousands)
As of December 31, 2017
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	745,473	12.34	%	$	558,728	9.25	%	$	634,232	10.50	%	$	604,030	10.00	%
First Commonwealth Bank	712,341		11.83		556,872		9.25		632,124		10.50		602,023		10.00
Tier I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	691,993	11.46	%	$	437,922	7.25	%	$	513,426	8.50	%	$	483,224	8.00	%
First Commonwealth Bank	658,861		10.94		436,467		7.25		511,720		8.50		481,619		8.00
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	691,993	9.74	%	$	284,100	4.00	%	$	284,100	4.00	%	$	355,125	5.00	%
First Commonwealth Bank	658,861		9.30		283,344		4.00		283,344		4.00		354,180		5.00
Common Equity Tier I to Risk Weighted Assets
First Commonwealth Financial Corporation	$	623,252	10.32	%	$	347,317	5.75	%	$	422,821	7.00	%	$	392,620	6.50	%
First Commonwealth Bank	658,861		10.94		346,163		5.75		421,416		7.00		391,315		6.50

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	Actual				Minimum Capital Required - Basel III Phase-In Schedule				Minimum Capital Required - Basel III Fully Phased-In				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(dollars in thousands)
As of December 31, 2016
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	687,554	12.28	%	$	483,034	8.63	%	$	588,042	10.50	%	$	560,040	10.00	%
First Commonwealth Bank	617,076		11.06		481,248		8.63		585,867		10.50		557,969		10.00
Tier I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	633,262	11.31	%	$	371,026	6.63	%	$	476,034	8.50	%	$	448,032	8.00	%
First Commonwealth Bank	562,784		10.09		369,654		6.63		474,273		8.50		446,375		8.00
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	633,262	9.83	%	$	257,776	4.00	%	$	257,776	4.00	%	$	322,220	5.00	%
First Commonwealth Bank	562,784		8.79		256,214		4.00		256,214		4.00		320,268		5.00
Common Equity Tier I to Risk Weighted Assets
First Commonwealth Financial Corporation	$	563,262	10.06	%	$	287,020	5.13	%	$	392,028	7.00	%	$	364,026	6.50	%
First Commonwealth Bank	562,784		10.09		285,959		5.13		390,578		7.00		362,680		6.50

Note 26—Capital

In 2012, First Commonwealth announced a $50.0 million common stock repurchase program. Additional share repurchase programs were authorized for up to $25.0 million in shares of the Company’s common stock for each year from 2013 to 2016. The repurchase program was suspended in July 2016 as a result of the acquisition of thirteen branches in northern Ohio which management believes represents a better use of capital for shareholder. Repurchases under all programs resulted in a total of 16,665,735 shares repurchased at an average price of $7.55 per share.

106

Note 27—Condensed Financial Information of First Commonwealth Financial Corporation (parent company only)

Statements of Financial Condition	December 31,
	2017		2016
	(dollars in thousands)
Assets
Cash	$	16,432	$	30,387
Loans	17		19
Investment in subsidiaries	927,765		770,214
Investment in unconsolidated subsidiary trusts	2,186		2,185
Investment in jointly-owned company	9,191		9,042
Premises and equipment, net	3,715		3,793
Receivable from subsidiaries	—		33
Dividends receivable from subsidiaries	—		4,662
Other assets	4,996		2,453
Total assets	$	964,302	$	822,788
Liabilities and Shareholders’ Equity
Accrued expenses and other liabilities	$	4,008	$	692
Subordinated debentures payable	72,167		72,167
Shareholders’ equity	888,127		749,929
Total liabilities and shareholders’ equity	$	964,302	$	822,788

Statements of Income	For the years ended December 31,
	2017			2016			2015
	(dollars in thousands)
Interest and dividends	$	1		$	1		$	1
Dividends from subsidiaries	52,586			55,510			49,917
Interest expense	(3,000		)	(2,635		)	(2,357		)
Other income	17			83			232
Operating expense	(4,767		)	(4,700		)	(4,989		)
Income (loss) before taxes and equity in undistributed (loss) earnings of subsidiaries	44,837			48,259			42,804
Applicable income tax benefits	2,557			2,515			2,528
Income before equity in undistributed (loss) earnings of subsidiaries	47,394			50,774			45,332
Equity in undistributed earnings (loss) of subsidiaries	7,771			8,816			4,811
Net income	$	55,165		$	59,590		$	50,143

107

	For the years ended December 31,
Statements of Cash Flow	2017			2016			2015
	(dollars in thousands)
Operating Activities
Net income	$	55,165		$	59,590		$	50,143
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	322			355			493
Net (gains) losses on sales of assets	(3		)	—			240
(Increase) decrease in prepaid income taxes	(550		)	7,380			(6,993		)
Undistributed equity in subsidiaries	(7,771		)	(8,816		)	(4,811		)
Other net	8,767			7,759			10,753
Net cash provided by operating activities	55,930			66,268			49,825
Investing Activities
Net change in loans	2			3			2
Purchases of premises and equipment	(207		)	—			54
Proceeds from sale of other assets	3			(332		)	—
Proceeds from dissolution of subsidiary	0			27,017			—
Acquisition of affiliate, net of cash received	(250		)	—			—
Investment in subsidiaries	(37,690		)	(47,017		)	—
Net cash (used in) provided by investing activities	(38,142		)	(20,329		)	56
Financing Activities
Dividends paid	(30,513		)	(24,907		)	(25,089		)
Proceeds from reissuance of treasury stock	228			216			192
Purchase of treasury stock	(1,458		)	(864		)	(25,383		)
Net cash used in financing activities	(31,743		)	(25,555		)	(50,280		)
Net (decrease) increase in cash	(13,955		)	20,384			(399		)
Cash at beginning of year	30,387			10,003			10,402
Cash at end of year	$	16,432		$	30,387		$	10,003

Cash dividends declared per common share were $0.32 for 2017 and $0.28 in 2016 and 2015.

First Commonwealth Financial Corporation has an unsecured $15.0 million line of credit with another financial institution. As of December 31, 2017, there are no amounts outstanding on this line and we are in compliance with all debt covenants related

to the line of credit.

Note 28—Subsequent Event

On January 10, 2018, the Company announced the acquisition of Garfield Acquisition Corp., the parent company of Cincinnati, Ohio based Foundation Bank, in a cash and stock transaction valued at approximately $58 million. The acquisition of Foundation Bank includes approximately $215 million in assets, $182 million in loans, $148 million in deposits and five full-service banking offices. This transaction is subject to regulatory approval.

108

Quarterly Summary of Financial Data—Unaudited

The unaudited quarterly results of operations for the years ended December 31 are as follows:

	2017
	Fourth Quarter		Third Quarter		Second Quarter			First Quarter
	(dollars in thousands, except per share data)
Interest income	$	65,840	$	65,411	$	63,120		$	56,179
Interest expense	6,270		5,848		5,303			4,349
Net interest income	59,570		59,563		57,817			51,830
Provision for credit losses	2,253		1,214		(1,609		)	3,229
Net interest income after provision for credit losses	57,317		58,349		59,426			48,601
Net securities gains (losses)	4,345		92		(49		)	652
Other noninterest income	20,360		19,698		18,953			16,280
Other expenses	51,909		47,361		58,263			42,765
Income before income taxes	30,113		30,778		20,067			22,768
Income tax provision	26,132		9,495		6,054			6,880
Net Income	$	3,981	$	21,283	$	14,013		$	15,888
Basic Earnings Per Share	$	0.04	$	0.22	$	0.14		$	0.18
Diluted Earnings Per Share	0.04		0.22		0.14			0.18
Average shares outstanding	97,363,471		97,402,816		97,183,599			88,929,892
Average shares outstanding assuming dilution	97,507,465		97,457,470		97,232,288			88,987,671

	2016
	Fourth Quarter			Third Quarter		Second Quarter		First Quarter
	(dollars in thousands, except per share data)
Interest income	$	55,932		$	54,479	$	53,850	$	53,353
Interest expense	4,413			4,861		4,759		4,546
Net interest income	51,519			49,618		49,091		48,807
Provision for credit losses	(1,826		)	3,408		10,372		6,526
Net interest income after provision for credit losses	53,345			46,210		38,719		42,281
Net securities gains	589			—		28		—
Other noninterest income	17,743			16,994		15,530		13,715
Other expenses	45,675			38,696		37,410		38,144
Income before income taxes	26,002			24,508		16,867		17,852
Income tax provision	8,088			7,312		4,860		5,379
Net Income	$	17,914		$	17,196	$	12,007	$	12,473
Basic Earnings Per Share	$	0.20		$	0.19	$	0.14	$	0.14
Diluted Earnings Per Share	0.20			0.19		0.14		0.14
Average shares outstanding	88,879,658			88,854,448		88,831,758		88,840,088
Average shares outstanding assuming dilution	88,887,387			88,858,204		88,838,614		88,845,201

109

ITEM 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

ITEM 9A.    Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15 under the Securities Exchange Act of 1934 (the “Exchange Act”). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to provide reasonable assurance that the information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms of the Securities and Exchange Commission.

In addition, our management, including our Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of our internal controls over financial reporting to determine whether any changes occurred during the fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting. No such changes were identified in connection with this evaluation.

110

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

First Commonwealth is responsible for the preparation, the integrity, and the fair presentation of the Consolidated Financial Statements included in this annual report. The Consolidated Financial Statements and notes to the financial statements have been prepared in conformity with generally accepted accounting principles and include some amounts based upon management’s best estimates and judgments.

First Commonwealth’s management is responsible for establishing and maintaining effective internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f), that is designed to produce reliable financial statements in conformity with generally accepted accounting principles. Under the supervision and with the participation of management, including First Commonwealth’s principal executive officer and principal financial officer, First Commonwealth conducted an evaluation of the effectiveness of internal control over financial reporting based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

All internal control systems, no matter how well designed, have inherent limitations, including the possibility that a control can be circumvented and that misstatements due to error or fraud may occur without detection. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Based on First Commonwealth’s evaluation based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), management concluded that internal control over financial reporting was effective as of December 31, 2017. The effectiveness of First Commonwealth’s internal control over financial reporting as of December 31, 2017 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their attestation report which is included herein.

First Commonwealth Financial Corporation

Indiana, Pennsylvania

March 1, 2018

/S/    T. Michael Price	/S/    James R. Reske
T. Michael Price	James R. Reske
President and Chief Executive Officer	Executive Vice President, Chief Financial Officer and Treasurer

111

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors

First Commonwealth Financial Corporation:

Opinion on Internal Control Over Financial Reporting

We have audited First Commonwealth Financial Corporation and subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial condition of the Company as of December 31, 2017 and 2016, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2017, and the related notes (collectively, the consolidated financial statements), and our report dated March 1, 2018 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Pittsburgh, Pennsylvania

March 1, 2018

112

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors

First Commonwealth Financial Corporation:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statements of financial condition of First Commonwealth Financial Corporation and subsidiaries (the Company) as of December 31, 2017 and 2016, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2017, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2017, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated March 1, 2018 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risk of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that responds to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Company's auditor since 2006.

Pittsburgh, Pennsylvania

March 1, 2018

113

ITEM 9B.    Other Information

None.

114

PART III

ITEM 10.    Directors, Executive Officers and Corporate Governance

Information called for by this item concerning the identification, business experience and qualifications of First Commonwealth’s directors will be included in First Commonwealth’s definitive Proxy Statement to be filed with the Securities and Exchange Commission in connection with the annual meeting of shareholders to be held April 24, 2018 (the “Proxy Statement”), under the heading “Proposal 1—Election of Directors,” and is incorporated herein by reference.

Information called for by this item concerning First Commonwealth’s compliance with section 16(a) of the Exchange Act will be included in the Proxy Statement under the heading “Section 16(a) Beneficial Ownership Reporting Compliance,” and is incorporated herein by reference.

First Commonwealth has adopted a code of conduct and ethics that applies to all employees of the Company, including executive officers. In addition, First Commonwealth has adopted a code of ethics for the Chief Executive Officer and all senior financial officers of the Company. Both of these codes are filed as exhibits to this Annual Report on Form 10-K and are posted on First Commonwealth’s website at http://www.fcbanking.com. Refer to Item 15 of this Annual Report on Form 10-K for a list of exhibits.

Information called for by this item concerning First Commonwealth’s Audit Committee and the identification of “Audit Committee financial experts” will be included in the Proxy Statement under the heading “Corporate Governance,” and is incorporated herein by reference.

Certain information regarding executive officers is included under the caption “Executive Officers of First Commonwealth Financial Corporation” after Part I, Item 4, of this Report.

ITEM 11.    Executive Compensation

Information called for by this item concerning compensation of First Commonwealth’s executive officers and the report of the Compensation and Human Resources Committee will be included in the Proxy Statement under the heading “Executive Compensation,” and is incorporated herein by reference.

Information called for by this item concerning compensation of First Commonwealth’s directors will be included in the Proxy Statement under the heading “Compensation of Directors,” and is incorporated herein by reference.

ITEM 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information called for by this item concerning security ownership of certain beneficial owners and security ownership of management will be included in the Proxy Statement under the headings “Security Ownership of Certain Beneficial Owners” and “Securities Owned by Directors and Management,” and is incorporated herein by reference.

The following table provides information related to our existing equity compensation plans as of December 31, 2017:

Plan Category	Number of securities to  be issued upon exercise of outstanding options, warrants and rights	Weighted average exercise price of outstanding options, warrants and rights	Number of securities remaining available for future issuance under equity compensation plans
Equity compensation plans approved by security holders	525,045	N/A	3,365,572
Equity compensation plans not approved by security holders	N/A	N/A	N/A
Total	525,045	N/A	3,365,572

The number of securities to be issued upon exercise of outstanding option, warrants and rights represent the maximum number of shares that may be issued pursuant to outstanding performance units.

115

ITEM 13.    Certain Relationships and Related Transactions, and Director Independence

Information called for by this item concerning transactions with related persons and review, approval or ratification of transactions with related persons will be included in the Proxy Statement under the heading “Related Party Transactions,” and is incorporated herein by reference.

Information called for by this item concerning director independence will be included in the Proxy Statement under the heading “Corporate Governance,” and is incorporated herein by reference.

ITEM 14.    Principal Accountant Fees and Services

Information called for by this item concerning fees paid to First Commonwealth’s principal accountant and First Commonwealth’s pre-approval policies and procedures will be included in the Proxy Statement under the heading “Annual Audit Information,” and is incorporated herein by reference.

116

PART IV

ITEM 15.    Exhibits, Financial Statements and Schedules

(A)Documents Filed as Part of this Report

(1)Financial Statements

All financial statements of the registrant as set forth under Item 8 of the Report on Form 10-K.

(2)    Financial Statement Schedules

Schedule Number	Description	Page
I	Indebtedness to Related Parties	N/A
II	Guarantees of Securities of Other Issuers	N/A

(3)Exhibits

Exhibit Number	Description	Incorporated by Reference to
3.1	Amended and Restated Articles of Incorporation of First Commonwealth Financial Corporation	Exhibit 3.1 to the quarterly report on Form 10-Q for the quarter ended June 30, 2010
3.2	Amended and Restated By-Laws of First Commonwealth Financial Corporation	Exhibit 3.1 to the current report as Form 8-K filed February 1, 2016
10.1	Amended and Restated Non-Qualified Deferred Compensation Plan (formerly known as the Supplemental Executive Retirement Plan)	Exhibit 10.1 to the current report on Form 8-K filed December 21, 2017
10.2	Amended and Restated Employment Agreement dated January 1, 2012 entered into among First Commonwealth Financial Corporation, First Commonwealth Bank and T. Michael Price	Exhibit 10.1 to the current report on Form 8-K filed January 5, 2012
10.3	Change of Control Agreement dated December 30, 2011 entered into between FCFC and T. Michael Price	Exhibit 10.3 to the current report on Form 8-K filed January 5, 2012
10.4	First Commonwealth Financial Corporation Incentive Compensation Plan	Annex I to Proxy Statement filed March 19, 2015 relating to the 2015 Annual Meeting of Shareholders
10.5	2017 Annual Incentive Plan	Exhibit 10.1 to the quarterly report on Form 10-Q filed May 9, 2017
10.6	2015-2017 Long-Term Incentive Plan	Exhibit 10.2 to the quarterly report on Form 10-Q filed May 8, 2015
10.7	2016-2018 Long-Term Incentive Plan	Exhibit 10.2 to the quarterly report on Form 10-Q filed May 9, 2016
10.8	2017-2019 Long-Term Incentive Plan	Exhibit 10.2 to the quarterly report on Form 10-Q filed May 9, 2017
10.9	Form of Restricted Stock Agreement for service-based restricted stock	Exhibit 10.3 to the quarterly report on Form 10-Q filed May 8, 2012
10.10	Change of Control Agreement dated December 30, 2011 entered into between FCFC and Leonard V. Lombardi	Exhibit 10.13 to the annual report on Form 10-K filed March 5, 2012
10.11	Change of Control Agreement dated December 30, 2011 entered into between FCFC and Matthew C. Tomb	Exhibit 10.14 to the annual report on Form 10-K filed March 5, 2012
10.12	Performance Unit Agreement dated December 30, 2015 between First Commonwealth Financial Corporation and T. Michael Price	Exhibit 10.13 to the annual report on Form 10-K filed February 29, 2016

117

Exhibit Number	Description	Incorporated by Reference to
10.13	Employment Agreement dated April 10, 2014 between First Commonwealth Financial Corporation and James R. Reske	Exhibit 10.1 to the current report on Form 8-K filed April 10, 2014
10.14	Change of Control Agreement dated April 10, 2014 between First Commonwealth Financial Corporation and James R. Reske	Exhibit 10.3 to the current report on Form 8-K filed April 10, 2014
10.15	Restricted Stock Agreement dated April 10, 2014 between First Commonwealth Financial Corporation and James R. Reske	Exhibit 10.2 to the current report on Form 8-K filed April 10, 2014
10.16	Change of Control Agreement dated March 1, 2013 entered into between FCFC and Norman J. Montgomery	Exhibit 10.3 to the quarterly report on Form 10-Q filed May 8, 2013
10.17	Change of Control Agreement dated March 1, 2013 entered into between FCFC and Carrie L. Riggle	Exhibit 10.4 to the quarterly report on Form 10-Q filed May 8, 2013
10.18	Change of Control Agreement dated May 31, 2013 entered into between FCFC and Jane Grebenc	Exhibit 10.2 to the quarterly report on Form 10-Q filed August 7, 2013
10.19	Employment Agreement dated May 31, 2013 entered into between FCFC and Jane Grebenc	Exhibit 10.1 to the quarterly report on Form 10-Q filed August 7, 2013
10.20	Employment Agreement dated September 19, 2016 entered into between FCFC and Brian Karrip	Exhibit 10.1 to the quarterly report on Form 10-Q filed November 9, 2016
10.21	Change of Control Agreement dated September 19, 2016 entered into between FCFC and Brian Karrip	Exhibit 10.2 to the quarterly report on Form 10-Q filed November 9, 2016
10.22	Restricted Stock Agreement dated September 19, 2016 entered into between FCFC and Brian Karrip	Exhibit 10.3 to the quarterly report on Form 10-Q filed November 9, 2016
10.23	Amended and Restated Director Retainer Plan	Filed herewith
21.1	Subsidiaries of the Registrant	Filed herewith
23.1	Consent of KPMG LLP Independent Registered Public Accounting Firm	Filed herewith
31.1	Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.1	Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.2	Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
101.00	The following materials from First Commonwealth Financial Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at December 31, 2017 and December 31, 2016, (ii) the Consolidated Statements of Income for the years ended December 31, 2017, 2016 and 2015, (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 2016 and 2015, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2017, 2016 and 2015, (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015, and (vi) the Notes to Consolidated Financial Statements.	Filed herewith

118

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in Indiana, Pennsylvania.

FIRST COMMONWEALTH FINANCIAL CORPORATION (Registrant)
By:	/S/    T. Michael Price
	T. Michael Price President and Chief Executive Officer
	Dated: March 1, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been executed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature	Capacity	Date
/S/    Julie A. Caponi	Director	March 1, 2018
Julie A. Caponi
/S/    Ray T. Charley	Director	March 1, 2018
Ray T. Charley
/S/    Gary R. Claus	Director	March 1, 2018
Gary R. Claus
	Director, Chairman	March 1, 2018
David S. Dahlmann
/S/    Johnston A. Glass	Director	March 1, 2018
Johnston A. Glass
/S/    Jon L. Gorney	Director	March 1, 2018
Jon L. Gorney
/S/    David W. Greenfield	Director	March 1, 2018
David W. Greenfield
/s/ Bart E. Johnson	Director	March 1, 2018
Bart E. Johnson
/S/    Luke A. Latimer	Director	March 1, 2018
Luke A. Latimer
/S/    T. Michael Price	President and Chief Executive Officer (Principal Executive Officer)	March 1, 2018
T. Michael Price
/S/    James R. Reske	Executive Vice President, Chief Financial Officer, and Treasurer	March 1, 2018
James R. Reske
/S/    Laurie S. Singer	Director	March 1, 2018
Laurie S. Singer
/S/    Robert J. Ventura	Director	March 1, 2018
Robert J. Ventura
/s/ Stephen A. Wolfe	Director	March 1, 2018
Stephen A. Wolfe

119

EX-10.23

Exhibit 10.23 Amended and Restated Director Retainer Plan

FIRST COMMONWEALTH FINANCIAL CORPORATION

DIRECTOR RETAINER PLAN

(As Amended and Restated effective January 1, 2018)

1. Name and Purpose.

(a)    This plan shall be known as the First Commonwealth Financial Corporation Director Retainer Plan (the “Plan”). This Plan is adopted by Board of Directors of First Commonwealth Financial Corporation (the “Company”) pursuant to the First Commonwealth Financial Corporation Incentive Compensation Plan (the “Master Plan”) and shall be subject to the terms and conditions of the Master Plan. Each capitalized term that is not otherwise defined in this Plan shall have the meaning given to such term in the Master Plan.

(b)    The purpose of this Plan is to enable the Company to attract and retain qualified persons to serve as Directors of the Company by providing a competitive retainer and to further align the interests of Directors with shareholders of the Company by providing for the payment of a portion of the retainer in shares of Common Stock.

2. Administration.

The Plan shall be administered by the Governance Committee of the Board of Directors (the “Committee”). The Committee shall, subject to the applicable provisions of the Plan and the Master Plan, have full authority and discretion to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to prepare forms to use with respect to the Plan, and to make all determinations necessary or advisable for the administration of the Plan. The Committee’s determination as to any matter relating to the interpretation of the Plan shall be conclusive on all persons.

3. Eligible Participants.

For purposes of the Plan, a “Director” refers to, as of any date, a person who is serving as a director of First Commonwealth Financial Corporation who is not an employee of the Company or any Subsidiary.

4. Retainer.

(a)    Each Director shall be paid a retainer in an amount determined by the Committee from time to time (the “Retainer”). Except for a Director who exercises his or her right to opt out of receiving shares of Common Stock in accordance with paragraph (b) of this Section 4, each Director shall receive the Retainer in cash and shares of Common Stock as follows:

(i)    One-half of the Retainer shall be payable in cash in four equal installment on the date of each quarterly meeting of the Board of Directors in January, April, July and October (or the last day of the month if no meeting is held in that month); and

(ii)    One-half of the Retainer shall be payable in shares of Common Stock in an amount determined by dividing (x) one-half of the Retainer by (y) the Fair Market Value of the Common Stock as of the Determination Date. The “Determination Date” shall mean the date of the Annual Meeting of Shareholders (or April 30 if the Annual Meeting is not held prior to that date), provided that if the Annual Meeting (or April 30, as applicable) occurs during a period when trading of the Common Stock is restricted by an insider trading or similar Company policy, the Determination Date shall be the first business day following the expiration of the trading restriction. The shares issuable pursuant to this Section 4(a)(ii) shall be issued in book entry form as soon as administratively practicable following the determination of Fair Market Value and shall not be subject to transfer restrictions or other Vesting Conditions.

(b)    Notwithstanding Section 4(a) above, any Director who owns shares of Common Stock having a Fair Market Value of at least $500,000 (measured as of the most recent December 31) may elect to receive his or her entire Retainer in cash. That election must be made pursuant to a written notice delivered to the Secretary of the Company not later than February 28 of the year in which the election is to be effective. Each Director who has elected to receive his or her entire Retainer in cash pursuant to this Section 4(b) shall receive his or her retainer in four installments on the date of each quarterly meeting of the Board of Directors in January, April, July and October (or the last day of the month if no meeting is held in that month). An election made pursuant to this Section 4(b) shall remain in effect unless and until the Director rescinds the election by written notice to the Secretary of the Company.

(c)    Any Director who is elected or appointed to the Board after January 1 shall be entitled to receive a prorated Retainer based upon the number of whole or partial months of the year during which he or she serves as a Director. One-half of the prorated Retainer shall be paid in cash and one-half of the prorated Retainer shall be paid in shares of Common Stock using the same Fair Market Value as is used to calculate the number of shares issuable to Directors who are entitled to receive a full Retainer under this Plan. The first installment of the prorated cash Retainer will be paid on the date of the first meeting of the Board of Directors that the Director attends, and the prorated Common Stock retainer will be paid on the later of the date of the first meeting of the Board of Directors that the Director attends or the Determination Date.

5. Miscellaneous Provisions.

(a)    The Committee may amend, suspend, or terminate this Plan at any time.

(b)    This Plan shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania except to the extent such laws are superseded by the federal laws of the United States.

EX-21.1

Exhibit 21.1 Subsidiaries of First Commonwealth Financial Corporation

	Percent Ownership by Registrant
First Commonwealth Bank 601 Philadelphia Street Indiana, PA 15701 Incorporated under laws of Pennsylvania	100%
Subsidiaries of First Commonwealth Bank
First Commonwealth Insurance Agency 601 Philadelphia Street Indiana, PA 15701 Incorporated under laws of Pennsylvania	100%
First Commonwealth Community Development Corporation (Inactive) 654 Philadelphia Street Indiana, PA 15701 Incorporated under laws of Pennsylvania	100%
First Commonwealth Financial Advisors Incorporated 601 Philadelphia Street Indiana, PA 15701 Incorporated under laws of Pennsylvania	100%
FraMal Holdings Corporation 1105 N. Market Street, Suite 1300 Wilmington, DE 19801 Incorporated under laws of Delaware	100%
First Commonwealth Capital Trust II 601 Philadelphia Street Indiana, PA 15701 Incorporated under laws of Pennsylvania	100%
First Commonwealth Capital Trust III 601 Philadelphia Street Indiana, PA 15701 Incorporated under laws of Pennsylvania	100%
Commonwealth Trust Credit Life Insurance Company 2700 North Third Street, Suite 3050 Phoenix, AZ 85004 Incorporated under laws of Arizona	50%
DCB Title Services, LLC (Inactive) 110 Riverbend Avenue Lewis Center, OH 43035 Incorporated under the laws of Ohio	100%

EX-23.1

Exhibit 23.1 Consent of Independent Registered Public Accounting Firm

The Board of Directors

First Commonwealth Financial Corporation:

We consent to the incorporation by reference in the registration statements (No. 333-206191 and No. 333-187288) on Form S-3, in the registration statements (No. 033-55687 and No. 333-159090) on Form S-8 and in the registration statement (No. 333-214703) on Form S-4 of First Commonwealth Financial Corporation of our reports dated March 1, 2018, with respect to the consolidated statements of financial condition of First Commonwealth Financial Corporation as of December 31, 2017 and 2016, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2017, and the related notes (collectively, the “consolidated financial statements”), and the effectiveness of internal control over financial reporting as of December 31, 2017, which reports appear in the December 31, 2017 annual report on Form 10-K of First Commonwealth Financial Corporation.

/s/ KPMG LLP

Pittsburgh, Pennsylvania

March 1, 2018

EX-31.1

EXHIBIT 31.1CHIEF EXECUTIVE OFFICER CERTIFICATION
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, T. Michael Price, certify that:

1. I have reviewed this annual report on Form 10-K of First Commonwealth Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

March 1, 2018	/S/    T. Michael Price
Date	Signature
	President and Chief Executive Officer
	Title

EX-31.2

EXHIBIT 31.2CHIEF FINANCIAL OFFICER CERTIFICATION
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James R. Reske, certify that:

1. I have reviewed this annual report on Form 10-K of First Commonwealth Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

March 1, 2018	/S/    James R. Reske
Date	Signature
	Executive Vice President, Chief Financial Officer and Treasurer
	Title

EX-32.1

EXHIBIT 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADDED BY SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

I, T. Michael Price, President and Chief Executive Officer of First Commonwealth Financial Corporation (“First Commonwealth”), certify that the Annual Report of First Commonwealth on Form 10-K for the period ended December 31, 2017, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition of First Commonwealth at the end of such period and the results of operations of First Commonwealth for such period.

DATED: March 1, 2018	/S/    T. Michael Price
	T. Michael Price
	President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADDED BY SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

I, James R. Reske, Executive Vice President, Chief Financial Officer and Treasurer of First Commonwealth Financial Corporation (“First Commonwealth”), certify that the Annual Report of First Commonwealth on Form 10-K for the period ended December 31, 2017, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition of First Commonwealth at the end of such period and the results of operations of First Commonwealth for such period.

DATED: March 1, 2018	/S/    James R. Reske
	James R. Reske
	Executive Vice President, Chief Financial Officer and Treasurer

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 28, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	FCF
Entity Registrant Name	FIRST COMMONWEALTH FINANCIAL CORP /PA/
Entity Central Index Key	0000712537
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		97,523,651
Entity Public Float			$ 1,235,796,411

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 98,624,000	$ 91,033,000
Interest-bearing bank deposits	8,668,000	24,644,000
Securities available for sale, at fair value	(731,358,000)	(778,612,000)
Securities held to maturity, at amortized cost, (Fair value $418,249 at December 31, 2017 and $368,618 at December 31, 2016)	422,096,000	372,513,000
Other investments	29,837,000	36,498,000
Loans held for sale	14,850,000	7,052,000
Loans:
Portfolio loans	5,407,376,000	4,879,347,000
Allowance for credit losses	(48,298,000)	(50,185,000)
Net loans	5,359,078,000	4,829,162,000
Premises and equipment, net	81,339,000	67,534,000
Other real estate owned	2,765,000	6,805,000
Goodwill	255,353,000	186,500,000
Amortizing intangibles, net	15,007,000	12,013,000
Bank owned life insurance	212,099,000	187,021,000
Other assets	77,465,000	84,648,000
Total assets	7,308,539,000	6,684,018,000
Deposits (all domestic):
Noninterest-bearing	1,416,771,000	1,268,786,000
Interest-bearing	4,163,934,000	3,678,622,000
Total deposits	5,580,705,000	4,947,408,000
Short-term borrowings	707,466,000	867,943,000
Subordinated debentures	72,167,000	72,167,000
Other long-term debt	8,161,000	8,749,000
Capital Lease Obligations, Current	7,590,000	0
Total long-term debt	87,918,000	80,916,000
Other liabilities	44,323,000	37,822,000
Total liabilities	6,420,412,000	5,934,089,000
Shareholders’ Equity
Preferred stock, $1 par value per share, 3,000,000 shares authorized, none issued	0	0
Common stock, $1 par value per share, 200,000,000 shares authorized; 113,914,902 and 105,563,455 shares issued as of December 31, 2017 and 2016, respectively; and 97,456,478 and 89,007,077 shares outstanding at December 31, 2017 and 2016, respectively	113,915,000	105,563,000
Additional paid-in capital	470,123,000	366,426,000
Retained earnings	437,416,000	412,764,000
Accumulated other comprehensive (loss) income, net	(6,173,000)	(7,027,000)
Treasury stock (16,458,424 and 16,556,378 shares at December 31, 2017 and 2016, respectively)	(127,154,000)	(127,797,000)
Total shareholders’ equity	888,127,000	749,929,000
Total liabilities and shareholders’ equity	$ 7,308,539,000	$ 6,684,018,000

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Securities held to maturity, fair value	$ 418,249	$ 368,618
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	3,000,000	3,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	113,914,902	105,563,455
Common stock, shares outstanding (in shares)	97,456,478	89,007,077
Treasury stock, shares (in shares)	16,458,424	16,556,378

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest Income
Interest and fees on loans	$ 218,530	$ 185,344	$ 172,819
Interest and dividends on investments:
Taxable interest	28,608	27,919	26,807
Interest exempt from federal income taxes	1,622	1,498	997
Dividends	1,669	2,826	3,434
Interest on bank deposits	121	27	14
Total interest income	250,550	217,614	204,071
Interest Expense
Interest on deposits	9,415	7,523	7,474
Interest on short-term borrowings	8,799	8,076	5,018
Interest on subordinated debentures	3,000	2,635	2,329
Interest on other long-term debt	323	345	774
Interest Expense, Lessee, Assets under Capital Lease	233	0	0
Total interest expense	21,770	18,579	15,595
Net Interest Income	228,780	199,035	188,476
Provision for credit losses	5,087	18,480	14,948
Net Interest Income after Provision for Credit Losses	223,693	180,555	173,528
Noninterest Income
Net securities gains (losses)	5,040	617	(153)
Trust income	7,098	5,366	5,834
Service charges on deposit accounts	18,579	15,869	15,319
Insurance and retail brokerage commissions	8,807	7,964	8,522
Income from bank owned life insurance	5,699	5,381	5,412
Gain on sale of mortgage loans	5,366	4,086	2,421
Card related interchange income	18,780	14,955	14,501
Derivative, Gain (Loss) on Derivative, Net	(473)	219	(274)
Swap Fee Income	2,005	2,359	847
Other income	7,677	6,372	7,041
Total noninterest income	80,331	64,599	61,325
Noninterest Expense
Salaries and employee benefits	103,714	87,125	89,161
Net occupancy	15,648	13,150	13,712
Furniture and equipment	13,508	11,624	10,737
Data processing	9,090	7,429	6,123
Advertising and promotion	3,786	2,601	2,638
Pennsylvania shares tax	4,209	3,825	4,693
Intangible amortization	3,081	547	605
Collection and repossession	1,905	2,250	2,826
Other professional fees and services	4,761	3,915	4,034
FDIC insurance	3,210	3,903	4,014
Gain (Loss) on Sale of Assets and Asset Impairment Charges	1,834	1,155	3,112
Loss on sale or write-down of assets	(1,753)	(1,411)	(1,855)
Litigation and operational losses	2,050	1,420	2,119
Merger and acquisition related	10,213	3,173	922
Other operating expenses	23,289	17,808	19,178
Total noninterest expense	200,298	159,925	163,874
Income before income taxes	103,726	85,229	70,979
Income tax provision	48,561	25,639	20,836
Net Income	$ 55,165	$ 59,590	$ 50,143
Average Shares Outstanding (in shares)	95,220,056	88,851,573	89,356,767
Average Shares Outstanding Assuming Dilution (in shares)	95,331,037	88,851,573	89,356,767
Per Share Data:
Basic Earnings Per Share (in dollars per share)	$ 0.58	$ 0.67	$ 0.56
Diluted Earnings Per Share (in dollars per share)	0.58	$ 0.67	0.56
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.32		$ 0.28

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net Income	$ 55,165	$ 59,590	$ 50,143
Other comprehensive income (loss), before tax expense (benefit):
Unrealized holding gains (losses) on securities arising during the period	7,023	(6,304)	2,798
Less: reclassification adjustment for (gains) losses on securities included in net income	(5,040)	(617)	153
Unrealized holding (losses) gains on derivatives arising during the period	(901)	(479)	450
Reclassification adjustment for losses on derivatives included in net income	119	(70)	(49)
Unrealized gains (losses) for postretirement obligation:
Net gain (loss)	94	331	(102)
Total other comprehensive income (loss), before income tax expense (benefit)	1,295	(7,139)	3,250
Income tax expense (benefit) related to items of other comprehensive income (loss)	441	(2,498)	1,137
Comprehensive Income	$ 56,019	$ 54,949	$ 52,256

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in-Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss), net [Member]	Treasury Stock [Member]
Beginning balance at Dec. 31, 2014	$ 716,145	$ 105,563	$ 365,615	$ 353,027	$ (4,499)	$ (103,561)
Beginning balance, Shares Outstanding at Dec. 31, 2014		91,723,028
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	50,143			50,143
Total other comprehensive (loss) Income	2,113				2,113
Cash dividends declared	(25,089)			(25,089)
Treasury stock acquired	(25,383)					(25,383)
Treasury stock acquired, Shares Outstanding		(2,918,066)
Treasury stock reissued	192		32	0		160
Treasury stock reissued, Shares Outstanding		20,936
Restricted stock, Shares Outstanding		135,370
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	1,425	$ 0	334	0		1,091
Ending balance at Dec. 31, 2015	719,546	$ 105,563	365,981	378,081	(2,386)	(127,693)
Ending balance, Shares Outstanding at Dec. 31, 2015		88,961,268
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	59,590			59,590
Total other comprehensive (loss) Income	(4,641)				(4,641)
Cash dividends declared	(24,907)			(24,907)
Treasury stock acquired	(864)					(864)
Treasury stock acquired, Shares Outstanding		(98,687)
Treasury stock reissued	216		39	0		177
Treasury stock reissued, Shares Outstanding		23,148
Restricted stock, Shares Outstanding		121,348
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	989	$ 0	406	0		583
Ending balance at Dec. 31, 2016	$ 749,929	$ 105,563	366,426	412,764	(7,027)	(127,797)
Ending balance, Shares Outstanding at Dec. 31, 2016	89,007,077	89,007,077
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	$ 55,165			55,165
Total other comprehensive (loss) Income	854				854
Cash dividends declared	(30,513)			(30,513)
Treasury stock acquired	(1,458)					(1,458)
Treasury stock acquired, Shares Outstanding		(104,257)
Treasury stock reissued	2,557		1,170	0		1,387
Treasury stock reissued, Shares Outstanding		181,211
Restricted stock, Shares Outstanding		21,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	852	$ 0	138	0		714
Stock Issued During Period, Shares, New Issues		8,351,447
Stock Issued During Period, Value, New Issues	110,741	$ 8,352	102,389
Ending balance at Dec. 31, 2017	$ 888,127	$ 113,915	$ 470,123	$ 437,416	$ (6,173)	$ (127,154)
Ending balance, Shares Outstanding at Dec. 31, 2017	97,456,478	97,456,478

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2015
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.32	$ 0.28

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Cash Flows [Abstract]
Repayments of Long-term Capital Lease Obligations	$ 260	$ 0	$ 0
Operating Activities
Net Income	55,165	59,590	50,143
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	5,087	18,480	14,948
Deferred Income Taxes and Tax Credits	20,825	5,713	12,653
Depreciation and amortization	8,997	7,116	7,640
Net gains on securities and other assets	(9,942)	(5,257)	(729)
Net amortization of premiums and discounts on securities	3,532	4,524	2,793
Income from increase in cash surrender value of bank owned life insurance	(5,699)	(5,325)	(5,412)
Payments for Origination of Mortgage Loans Held-for-sale	(164,212)	(133,278)	(86,576)
Proceeds from Sale of Mortgage Loans Held-for-sale	163,125	136,037	85,718
Increase in interest receivable	(1,314)	(577)	(41)
Increase (decrease) in interest payable	426	(272)	(103)
Decrease (increase) in income taxes payable	1,318	(589)	(354)
Other—net	10,997	3,111	(7,929)
Net cash provided by operating activities	88,305	89,273	72,751
Transactions with securities held to maturity:
Proceeds from maturities and redemptions	51,239	54,057	9,358
Purchases	(102,420)	(45,188)	(380,877)
Transactions with securities available for sale:
Proceeds from sales	143,660	55,744	88,054
Proceeds from maturities and redemptions	148,561	168,237	373,228
Purchases	(150,892)	(128,916)	(24,150)
Purchases of FHLB stock	(45,301)	(37,326)	(65,605)
Proceeds from the redemption of FHLB stock	55,212	63,780	48,029
Proceeds from bank owned life insurance	898	467	378
Proceeds from the sale of loans	14,807	18,612	3,018
Proceeds from sales of other assets	5,568	7,765	6,407
Acquisition, net of cash acquired	3,188	479,469	(3,533)
Net increase in loans	(165,726)	(135,436)	(191,853)
Payments for Purchase of Other Assets	(1,213)	(430)	0
Purchases of premises and equipment	(10,378)	(7,061)	(4,887)
Net cash (used in) provided by investing activities	(52,797)	493,774	(142,433)
Financing Activities
Net decrease in federal funds purchased	0	(4,000)	(5,000)
Net (decrease) increase in other short-term borrowings	(160,477)	(638,882)	409,949
Net increase (decrease) in deposits	149,175	132,180	(209,928)
Repayments of other long-term debt	(588)	(565)	(80,145)
Dividends paid	(30,513)	(24,907)	(25,089)
Proceeds from reissuance of treasury stock	228	216	192
Purchase of treasury stock	(1,458)	(864)	(25,383)
Net cash (used in) provided by financing activities	(43,893)	(536,822)	64,596
Net (decrease) increase in cash and cash equivalents	(8,385)	46,225	(5,086)
Cash and cash equivalents at January 1	115,677	69,452	74,538
Cash and cash equivalents at December 31	$ 107,292	$ 115,677	$ 69,452

XML

Statement of Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Statement of Accounting Policies

Statement of Accounting Policies

General

The following summary of accounting and reporting policies is presented to aid the reader in obtaining a better understanding of the consolidated financial statements of First Commonwealth Financial Corporation and its subsidiaries (“First Commonwealth”) contained in this report.

The financial information is presented in accordance with generally accepted accounting principles and general practice for financial institutions in the United States of America. In preparing financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. In addition, these estimates and assumptions affect revenues and expenses in the financial statements and as such, actual results could differ from those estimates.

Through its subsidiaries, which include a commercial bank and an insurance agency, First Commonwealth provides a full range of loan, deposit, trust, insurance and personal financial planning services primarily to individuals and small to middle market businesses in fifteen counties in central and western Pennsylvania as well as in central and northern Ohio. First Commonwealth has determined that it has one business segment.

First Commonwealth is subject to regulations of certain state and federal agencies. These regulatory agencies periodically examine First Commonwealth for adherence to laws and regulations.

Basis of Presentation

The accompanying Consolidated Financial Statements include the accounts of First Commonwealth previously defined above. All material intercompany transactions have been eliminated in consolidation.

Equity investments of less than a majority but at least 20% ownership are accounted for by the equity method and classified as “Other assets.” Earnings on these investments are reflected in “Other income” on the Consolidated Statements of Income, as appropriate, in the period earned.

Securities

Debt securities that First Commonwealth has the positive intent and ability to hold to maturity are classified as securities held to maturity and are reported at amortized cost adjusted for amortization of premium and accretion of discount on a level yield basis. Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are to be classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as securities available for sale and are reported at fair value, with unrealized gains and losses that are not related to impairment excluded from earnings and reported as a component of other comprehensive income, which is included in shareholders’ equity, net of deferred taxes.

First Commonwealth has securities classified as held to maturity and available for sale and does not engage in trading activities. 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 the equity securities.

First Commonwealth conducts a comprehensive review of the investment portfolio on a quarterly basis to determine whether other-than-temporary impairment has occurred. Issuer-specific securities whose market values have fallen below their book values are initially selected for more in-depth analysis based on the percentage decline in value and duration of the decline. Issuer-specific securities include obligations of U.S. Government agencies and sponsored enterprises, single issue trust preferred securities, corporate debentures and obligations of states and political subdivisions. Further analysis of these securities includes a review of research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, impact of interest rate changes and any other relevant information pertaining to the affected security. Pooled trust preferred collateralized debt obligations are measured by evaluating all relevant credit and structural aspects, determining appropriate performance assumptions and performing a discounted cash flow analysis. This evaluation includes detailed credit, performance and structural evaluations for each piece of collateral. Other factors in the pooled trust preferred collateralized debt obligations valuation include terms of the structure, the cash flow waterfall (for both interest and principal), the over collateralization and interest coverage tests and events of default/liquidation. Based on this review, a determination is made on a case by case basis as to a potential impairment. Declines in the fair value of individual securities below their cost that are not expected to be recovered will result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as impairment losses.

Mortgage Loans Held for Sale

Certain residential mortgage loans are originated for sale in the secondary mortgage loan market with the majority sold with servicing rights released. These loans are classified as loans held for sale and are carried at the lower of cost or estimated market value on an aggregate basis. Market value is determined on the basis of rates obtained in the respective secondary market for the type of loan held for sale. Loans are generally sold at a premium or discount from the carrying amount of the loan. Such premium or discount is recognized at the date of sale. Gain or loss on the sale of loans is recorded in non-interest income at the time consideration is received and all other criteria for sales treatment have been met.

Loans

Loans are carried at the principal amount outstanding. Interest is accrued as earned. Loans held for sale are carried at the lower of cost or fair value determined on an individual basis.

First Commonwealth considers a loan to be past due and still accruing interest when payment of interest or principal is contractually past due but the loan is both well secured and in the process of collection. For installment, mortgage, term and other loans with amortizing payments that are scheduled monthly, 90 days past due is reached when four monthly payments are due and unpaid. For demand, time and other multi-payment obligations with payments scheduled other than monthly, delinquency status is calculated using number of days instead of number of payments. Revolving credit loans, including personal credit lines and home equity lines, are considered to be 90 days past due when the borrower has not made the minimum payment for four monthly cycles.

A loan is placed in nonaccrual status when, based on current information and events, it is probable that First Commonwealth will be unable to fully collect principal or interest due according to the contractual terms of the loan. A loan is also placed in nonaccrual status when, based on regulatory definitions, the loan is maintained on a “cash basis” due to the weakened financial condition of the borrower. When a determination is made to place a loan in nonaccrual status, all accrued and unpaid interest is reversed. Nonaccrual loans are restored to accrual status when, based on a sustained period of repayment by the borrower in accordance with the contractual terms of the loan, First Commonwealth expects repayment of the remaining contractual principal and interest or when the loan otherwise becomes well-secured and in the process of collection.

First Commonwealth considers a loan to be a troubled debt restructured loan when the loan terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources.

A loan is considered to be impaired when, based on current information and events, it is probable that First Commonwealth will be unable to collect principal or interest that is due in accordance with contractual terms of the loan. Impaired loans include nonaccrual loans and troubled debt restructured loans. Loan impairment is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent.

For loans other than those that First Commonwealth expects repayment through liquidation of the collateral, when the remaining recorded investment in the impaired loan is less than or equal to the present value of the expected cash flows, income is applied as a reduction to loan principal rather than interest income.

Loans deemed uncollectible are charged off through the allowance for credit losses. Factors considered in assessing ultimate collectability include past due status, financial condition of the borrower, collateral values and debt covenants including secondary sources of repayment by guarantors. Payments received on previously charged off loans are recorded as recoveries in the allowance for credit losses.

Acquired loans are recorded at estimated fair value on the date of acquisition with no carryover of the related allowance for credit losses. The fair value of acquired loans is determined by estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The estimated fair value considers factors such as loan term, internal risk rating, delinquency status, prepayment rates, estimated value of the underlying collateral and the current interest rate environment.

Loan Fees

Loan origination and commitment fees, net of associated direct costs, are deferred and the net amount is amortized as an adjustment to the related loan yield on the interest method, generally over the contractual life of the related loans or commitments.

Other Real Estate Owned

Real estate, other than bank premises, is recorded at fair value less estimated selling costs at the time of acquisition.   After that time, other real estate is carried at the lower of cost or fair value less estimated costs to sell. Fair value is determined based on an independent appraisal. Expenses related to holding the property and rental income earned on the property are generally reflected in earnings in the current period. Depreciation is not recorded on the other real estate owned properties.

Allowance for Credit Losses

First Commonwealth maintains an allowance for credit losses at a level deemed sufficient to absorb losses that are inherent in the loan portfolio. First Commonwealth’s management determines and reviews with the Board of Directors the adequacy of the allowance on a quarterly basis to ensure that the provision for credit losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. First Commonwealth’s methodology for assessing the appropriateness of the allowance for credit losses consists of several key elements. These elements include an assessment of individual problem loans, delinquency and loss experience trends and other relevant factors, all of which may be susceptible to significant changes.

The major loan classifications used in the allowance for credit losses calculation include pass, other assets especially mentioned (“OAEM”), substandard and doubtful. Additional information related to these credit quality categories is provided in Note 11, "Loans and Allowance for Credit Losses."

First Commonwealth consistently applies the following comprehensive methodology and procedure for determining the allowance for credit losses.

All impaired credits in excess of $100 thousand are individually reviewed quarterly. A specific reserve is established for impaired loans in an amount equal to the total amount of probable unconfirmed losses for the impaired loans that are reviewed. Based on this reserve as a percentage of reviewed loan balances, a reserve is also established for the impaired loan balances that are not individually reviewed.

The allowance calculation uses net historical charge-off trends to estimate probable unconfirmed losses for each loan category. A multiplier known as the emergence factor is applied to the historical loss rates for non-criticized loans. The emergence factor is calculated by loan category and represents the average time period from when a loss is incurred until the bank experiences a charge-off against the loan. Before applying the adjusted historical loss experience percentages, loan balances are reduced by the portion of the loan balances which are subject to guarantee by a government agency.

An additional component of the allowance is determined by management based on a qualitative analysis of certain factors related to portfolio risks and economic conditions. Factors considered by management include employment trends, macroeconomic trends, commercial real estate trends, lending practices, ability and experience of the credit staff, the overall lending environment and external factors such as the regulatory environment and competition. Portfolio risks include unusual changes or recent trends in specific portfolios such as unexpected changes in the trends or levels of delinquency. No matter how detailed an analysis of potential credit losses is performed, these estimates are inherently imprecise. Management must make estimates using assumptions and information that is often subjective and changes rapidly.

Loans acquired with evidence of credit deterioration were evaluated and not considered to be significant. The premium or discount estimated through the loan fair value calculation is recognized into interest income on a level yield or straight-line basis over the remaining contractual life of the loans. Additional credit deterioration on acquired loans, in excess of the original credit discount embedded in the fair value determination on the date of acquisition, will be recognized in the allowance for credit losses through the provision for loan losses.

Allowance for Off-Balance Sheet Credit Exposures

First Commonwealth maintains an allowance for off-balance sheet credit exposure at a level deemed sufficient to absorb losses that are inherent to off-balance sheet credit risk. Management determines the adequacy of the allowance on a quarterly basis, charging the provision against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. The Company’s methodology for assessing the appropriateness of the allowance for off-balance sheet credit exposure consists of analysis of historical usage trends as well as loss history and probability of default rates related to the off-balance sheet category. The calculation begins with historical usage trends related to lines of credit as well as letters of credit and then utilizes those figures to determine the probable usage of available lines. These values are then adjusted by a determined probability of default as well as a loss given default. This amount is adjusted quarterly and reported as part of other operating expenses on the Consolidated Statements of Income.

Bank Owned Life Insurance

First Commonwealth and the banks that First Commonwealth has acquired have purchased insurance on the lives of certain groups of employees. The policies accumulate asset values to meet future liabilities, including the payment of employee benefits such as health care. Increases in the cash surrender value are recorded as non-interest income in the Consolidated Statements of Income. Under some of these policies, the beneficiaries receive a portion of the death benefit. The net present value of the future death benefits scheduled to be paid to the beneficiaries was $3.9 million and $3.3 million as of December 31, 2017 and 2016, respectively, and is reflected in "Other Liabilities" on the Consolidated Statements of Financial Condition.

Premises and Equipment

Premises and equipment are carried at cost less accumulated depreciation on First Commonwealth’s Consolidated Statements of Financial Condition. Depreciation is computed on the straight-line and accelerated methods over the estimated useful life of the asset. A straight-line depreciation method was used for substantially all furniture and equipment. The straight-line depreciation method was used for buildings and improvements. Charges for maintenance and repairs are expensed as incurred. Leasehold improvements are expensed over the term of the lease or the estimated useful life of the improvement, whichever is shorter.

Software costs are amortized on a straight-line basis over a period not to exceed seven years.

Business Combinations

Business combinations are accounted for by using the acquisition method of accounting. Under the acquisition method, identifiable assets acquired and liabilities assumed at the acquisition date are measured at their fair values as of that date, and are recognized separately from goodwill. The difference between the purchase price and the fair value of the net assets acquired is recorded as goodwill. Results of operations of the acquired entities are included in the consolidated statement of income from the date of acquisition. Acquisition costs are expensed when incurred.

Goodwill

Intangible assets resulting from acquisitions under the purchase method of accounting consist of goodwill and other intangible assets (see “Other Intangible Assets” section below). Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. First Commonwealth reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if our fair value has fallen below carrying value.

Other Intangible Assets

Other intangible assets consist of core deposits and customer lists obtained through acquisitions. Core deposit intangibles are amortized over their estimated lives using the present value of the benefit of the core deposits and straight-line methods of amortization. Customer list intangibles are amortized over the expected lives using expected cash flows based on retention of the customer base. These intangibles are evaluated for impairment on an annual basis and when events or changes in circumstances indicate that the carrying amount may not be recoverable.

Accounting for the Impairment of Long-Lived Assets

First Commonwealth reviews long-lived assets, such as premises and equipment and intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These changes in circumstances may include a significant decrease in the market value of an asset or the extent or manner in which an asset is used. If there is an indication that the carrying amount of an asset may not be recoverable, future undiscounted cash flows expected to result from the use of the asset are estimated. If the sum of the expected cash flows is less than the carrying value of the asset, a loss is recognized for the difference between the carrying value and fair value of the asset. Long-lived assets classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. Depreciation or amortization is discontinued on long-lived assets classified as held for sale.

Income Taxes

First Commonwealth records taxes in accordance with the asset and liability method of FASB ASC Topic 740, “Income Taxes,” whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases given the provisions of the enacted tax laws. Deferred tax assets are reduced, if necessary, by the amount of such benefits that are more likely than not expected to be realized based upon available evidence. In accordance with FASB ASC Topic 740, interest or penalties incurred for taxes will be recorded as a component of noninterest expense.

Comprehensive Income Disclosures

“Other Comprehensive Income” (comprehensive income, excluding net income) includes the after-tax effect of changes in unrealized holding gains and losses on available-for-sale securities, changes in the funded status of defined benefit postretirement plans and changes in the fair value of the effective portion of cash flow hedges. Comprehensive income is reported in the accompanying Consolidated Statements of Comprehensive Income, net of tax.

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and interest-bearing bank deposits. Generally, federal funds are sold for one-day periods.

Derivatives and Hedging Activities

First Commonwealth accounts for derivative instruments and hedging activities in accordance with FASB ASC Topic 815, “Derivatives and Hedging.” All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities, and appropriate documentation is maintained to support the final determination. First Commonwealth recognizes all derivatives as either assets or liabilities on the Consolidated Statements of Financial Condition and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in OCI. When the cash flows associated with the hedged item are realized, the gain or loss included in OCI is recognized in the Consolidated Statement of Income.

When First Commonwealth purchases a portion of a commercial loan that has an existing interest rate swap, it enters a Risk Participation Agreement with the counterparty and assumes the credit risk of the loan customer related to the swap. Any fee paid to First Commonwealth as a result of the risk participation agreement is offset by credit risk of the counterparties and is recognized in the income statement. Credit risk on the risk participation agreements is determined after considering the risk rating, probability of default and loss given default of the counterparties.

Management periodically reviews contracts from various functional areas of First Commonwealth to identify potential derivatives embedded within selected contracts. As of December 31, 2017, First Commonwealth has interest derivative positions that are not designated as hedging instruments. See Note 8, “Derivatives,” for a description of these instruments.

Earnings Per Common Share

Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period.

Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For all periods presented, the dilutive effect on average shares outstanding is the result of compensatory stock options outstanding and unvested restricted stock grants.

Fair Value Measurements

In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” First Commonwealth groups financial assets and financial liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

• Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

• Level 2—Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained for identical or comparable assets or liabilities from alternative pricing sources with reasonable levels of price transparency. Level 2 securities include U.S. Government securities issued by Agencies and Sponsored Enterprises, Obligations of States and Political Subdivisions, certain corporate securities, FHLB stock, loans held for sale, interest rate derivatives that include interest rate swaps, risk participation agreements and foreign currency contracts, certain other real estate owned and certain impaired loans.

• Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. If the inputs used to provide the evaluation are unobservable and/or there is very little, if any, market activity for the security or similar securities, the securities would be considered Level 3 securities. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The assets included in Level 3 are pooled trust preferred collateralized debt obligations, nonmarketable equity investments, certain other real estate owned and certain impaired loans.

In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon pricing models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. See Note 19 “Fair Values of Assets and Liabilities” for additional information.

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New Accounting Pronouncements

12 Months Ended

Dec. 31, 2017

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606)”. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", with an original effective date for annual reporting periods beginning after December 15, 2016. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 deferred the effective date of ASU 2014-09 to annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company adopted this ASU on January 1, 2018 using the modified retrospective method. A significant component of the Company’s revenues, net interest income on financial assets and liabilities, is excluded from the scope of the amended guidance. The Company has completed its overall assessment of additional revenue streams, including trust and asset management fees, brokerage and annuity sales, deposit related fees, interchange fees, and merchant income and has concluded that the Company’s revenue recognition for these revenue streams will not change significantly. Management’s evaluation of the impact of the new standard on revenue generated from insurance commissions and fees, as well as all related processes and procedures, will be completed before the end of the first quarter of 2018. Until the evaluation of the insurance commissions and fees is completed, the Company cannot conclude whether the new standard has a material impact on the insurance commission revenue stream or the Company’s financial statements.

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Entities have the option to use certain relief; full retrospective application is prohibited. We are currently evaluating the potential impact of ASU 2016-02 on our financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which amends the guidance for recognizing credit losses from an “incurred loss” methodology that delays recognition of credit losses until it is probable a loss has been incurred to an expected credit loss methodology. The guidance requires the use of the modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The standard is effective for the Company as of January 1, 2020. The Company has formed a cross-functional implementation team to evaluate the provisions of the amendment, data requirements and determination of necessary modifications to its existing methodologies, systems and processes. The Company continues to evaluate the impact of the amended guidance on First Commonwealth’s financial condition or results of operations.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230),” which provides guidance on eight specific cash flow issues: 1. debt prepayment or extinguishment costs; 2. settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates; 3. contingent consideration payments made after a business combination; 4. proceeds from the settlement of insurance claims; 5. proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6. distributions received from equity method investees; 7. beneficial interests in securitizations transactions; and 8. separately identifiable cash flows and application of the predominance principle. This ASU provides additional guidance for these eight issues, reducing current and potential diversity in practice. This standard is effective for the Company as of January 1, 2018. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations.

In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805), Clarifying the Definition of a Business" which provides a screen to determine when a set of assets and activities (a "set") is not a business. The screen requires that when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen thereby reduces the number of transactions that need to be further evaluated. If the screen is not met, this ASU: 1. requires that to be considered a business, a set must include, at a minimum, an input and substantive process that significantly contributes to the ability to create output; and 2. removes the evaluation of whether a market participant could replace the missing elements. The amendment provides a framework to assist entities in evaluating whether both an input and substantive process is present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. This ASU also narrows the definition of the term output so that the term is consistent with how outputs are described in Topic 606. This standard is effective for interim and annual periods for fiscal years beginning after December 15, 2017. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations, but may impact future business combinations.

In January 2017, the FASB issued ASU No. 2017-04, "Intangibles-Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment" which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. Impairment should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. Income tax effects from any tax deductible goodwill should be taken into consideration of the carrying amount of the reporting unit when measuring for goodwill impairment, if applicable. An entity still has the option to perform the qualitative assessment for the reporting unit to determine if the quantitative impairment test is necessary. This standard is effective for interim and annual periods for fiscal years beginning after December 15, 2019. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations.

In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities" with the objective of improving the financial reporting of hedging relationships to better portray the economic results of risk management activities in its financial statements. The main provisions of this ASU update the hedge accounting model to expand the ability to hedge risk, reduce complexity, and ease certain documentation and assessment requirements. It also eliminates the requirement to separately measure and report hedge ineffectiveness, and generally requires the change in fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations.

In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the corporate income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The ASU is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company will early adopt ASU 2018-02 in the first quarter of 2018. This ASU is not expected to have a material impact on First Commonwealth's financial condition or results of operations.

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Acquisition

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Acquisition

Acquisition

On April 3, 2017, the Company completed its acquisition of DCB Financial Corporation ("DCB") and its banking subsidiary, The Delaware County Bank and Trust Company, for consideration of $21.2 million in cash and 8.4 million shares of the Company's common stock. Through the acquisition, the Company obtained nine full-service banking offices and four limited service locations which are operating under the First Commonwealth name. This acquisition expands the Company's presence in the central Ohio market and added $383.1 million in loans and $484.4 million in deposits to the Company's balance sheet.

The table below summarizes the net assets acquired (at fair value) and consideration transferred in connection with the DCB Financial acquisition (dollars in thousands):

Consideration Paid
Cash paid to shareholders	$	21,232
Shares issued to shareholders (8,356,882 shares)	$	110,812
Total consideration paid			$	132,044
Fair Value of Assets Acquired
Cash and cash equivalents	24,420
Investment Securities	88,986
FHLB Stock	3,250
Loans	383,083
Premises and other equipment	12,113
Core deposit intangible	5,998
Other real estate	68
Bank owned life insurance	20,522
Other assets	16,450
Total assets acquired	554,890
Fair Value of Liabilities Assumed
Deposits	484,366
Capital lease obligation	7,851
Other Liabilities	1,182
Total liabilities assumed	493,399
Total Fair Value of Identifiable Net Assets			61,491
Goodwill			$	70,553

The goodwill of $70.6 million arising from the acquisition represents the value of synergies and economies of scale expected from combining the operations of the Company with DCB Financial Corporation.

The Company determined that this acquisition constitutes a business combination as defined in FASB ASC Topic 805, “Business Combinations.” Accordingly, as of the date of the acquisition, the Company recorded the assets acquired and liabilities assumed at fair value. The Company determined fair values in accordance with the guidance provided in FASB ASC Topic 820, “Fair Value Measurements and Disclosures.” Acquired loans were recorded at fair value with no carryover of the related allowance for loan losses. Fair value is established by discounting the expected future cash flows with a market discount rate for like maturities and risk instruments. At the date of acquisition, none of the loans were accounted for under the guidance of ASC Topic 310-30, “Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality.” We acquired $390.8 million in total loans and recognized a net combined yield and credit market adjustment of $7.7 million.

The fair value of the 8,356,882 common shares issued was determined based on the market price of the Company's common shares on the acquisition date.

Costs related to the acquisition totaled $10.2 million. These amounts were expensed as incurred and are recorded as a merger and acquisition related expense in the Consolidated Statements of Income.

As a result of the full integration of the operations of DCB, it is not practicable to determine revenue or net income included in the Company's operating results relating to DCB since the date of acquisition as DCB’s results cannot be separately identified.

On December 2, 2016, the Company completed the acquisition of 13 branches from FirstMerit Bank, NA receiving $476.6 million in cash. This acquisition further expands the Company's market into northern Ohio and included the purchase of $105.6 million in loans and $619.7 million in deposits.

The table below summarizes the net assets acquired (at fair value) and consideration transferred in connection with the FirstMerit Bank, NA acquisition (dollars in thousands):

Consideration Received
Cash received	$	(476,555	)
Total consideration received				$	(476,555	)
Fair Value of Assets Acquired
Cash and cash equivalents	2,914
Loans	102,097
Premises and other equipment	6,072
Core deposit intangible	11,330
Other assets	353
Total assets acquired	122,766
Fair Value of Liabilities Assumed
Deposits	619,729
Other Liabilities	70
Total liabilities assumed	619,799
Total Fair Value of Identifiable Net Assets				(497,033		)
Goodwill				$	20,478

The goodwill of $20.5 million arising from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of the Company with the branches acquired from FirstMerit Bank, NA. The goodwill for this transaction is expected to be deducted over a 15 year period for income tax purposes.

We acquired $105.6 million in total loans and recognized a net combined yield and credit market adjustment of $3.5 million.

Costs related to the acquisition totaled $3.2 million. These amounts were expensed as incurred and are recorded as a merger and acquisition related expense in the Consolidated Statements of Income.

The Company determined this acquisition constitutes a business combination as defined in FASB ASC Topic 805, “Business Combinations.” Accordingly, as of the date of the acquisition, assets acquired and liabilities assumed were recorded at fair value. Fair values were determined in accordance with the guidance provided in FASB ASC Topic 820, “Fair Value Measurements and Disclosures.” Acquired loans were recorded at fair value with no carryover of the related allowance for loan losses. Fair value is established by discounting the expected future cash flows with a market discount rate for like maturities and risk instruments. At the date of acquisition, none of the loans were accounted for under the guidance of ASC Topic 310-30, “Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality.”

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Supplemental Comprehensive Income Disclosures

12 Months Ended

Dec. 31, 2017

Supplemental Comprehensive Income Disclosures [Abstract]

Supplemental Comprehensive Income Disclosures

Supplemental Comprehensive Income Disclosures

The following table identifies the related tax effects allocated to each component of other comprehensive income in the Consolidated Statements of Comprehensive Income as of December 31. Reclassification adjustments related to securities available for sale are included in the “Net securities gains (losses)” line in the Consolidated Statements of Income and reclassification adjustments related to losses on derivatives are included in the "Other operating expenses" line in the Consolidated Statements of Income.

	2017									2016									2015
	Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount
	(dollars in thousands)
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period	$	7,023		$	(2,458	)	$	4,565		$	(6,304	)	$	2,206		$	(4,098	)	$	2,798		$	(978	)	$	1,820
Reclassification adjustment for (gains) losses on securities included in net income	(5,040		)	1,764			(3,276		)	(617		)	216			(401		)	153			(54		)	99
Total unrealized gains (losses) on securities	1,983			(694		)	1,289			(6,921		)	2,422			(4,499		)	2,951			(1,032		)	1,919
Unrealized gains (losses) on derivatives:
Unrealized holding (losses) gains on derivatives arising during the period	(901		)	315			(586		)	(479		)	168			(311		)	450			(158		)	292
Reclassification adjustment for losses (gains) on derivatives included in net income	119			(42		)	77			(70		)	24			(46		)	(49		)	17			(32		)
Total unrealized (losses) gains on derivatives	(782		)	273			(509		)	(549		)	192			(357		)	401			(141		)	260
Unrealized gains (losses) for postretirement obligations:
Net gain (loss)	94			(20		)	74			331			(116		)	215			(102		)	36			(66		)
Total unrealized gains (losses) for postretirement obligations	94			(20		)	74			331			(116		)	215			(102		)	36			(66		)
Total other comprehensive income (loss)	$	1,295		$	(441	)	$	854		$	(7,139	)	$	2,498		$	(4,641	)	$	3,250		$	(1,137	)	$	2,113

The following table details the change in components of OCI for the year-ended December 31:

	2017
	Securities Available for Sale			Derivatives			Post-Retirement Obligation			Accumulated Other Comprehensive Income
	(dollars in thousands)
Balance at January 1	$	(7,455	)	$	203		$	225		$	(7,027	)
Other comprehensive income before reclassification adjustment	4,565			(586		)				3,979
Amounts reclassified from accumulated other comprehensive income (loss)	(3,276		)	77						(3,199		)
Net gain							74			74
Net other comprehensive income during the period	1,289			(509		)	74			854
Balance at December 31	$	(6,166	)	$	(306	)	$	299		$	(6,173	)
	2016
	Securities Available for Sale			Derivatives			Post-Retirement Obligation			Accumulated Other Comprehensive Income
	(dollars in thousands)
Balance at January 1	$	(2,956	)	$	560		$	10		$	(2,386	)
Other comprehensive income before reclassification adjustment	(4,098		)	(311		)				(4,409		)
Amounts reclassified from accumulated other comprehensive income (loss)	(401		)	(46		)				(447		)
Net gain							215			215
Net other comprehensive income during the period	(4,499		)	(357		)	215			(4,641		)
Balance at December 31	$	(7,455	)	$	203		$	225		$	(7,027	)
	2015
	Securities Available for Sale			Derivatives			Post-Retirement Obligation			Accumulated Other Comprehensive Income
	(dollars in thousands)
Balance at January 1	$	(4,875	)	$	300		$	76		$	(4,499	)
Other comprehensive income before reclassification adjustment	1,820			292						2,112
Amounts reclassified from accumulated other comprehensive income (loss)	99			(32		)				67
Net gain							(66		)	(66		)
Net other comprehensive income during the period	1,919			260			(66		)	2,113
Balance at December 31	$	(2,956	)	$	560		$	10		$	(2,386	)

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Supplemental Cash Flow Disclosures

12 Months Ended

Dec. 31, 2017

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Disclosures

Supplemental Cash Flow Disclosures

The following table presents information related to cash paid during the year for interest and income taxes as well as detail on non-cash investing and financing activities for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Cash paid during the period for:
Interest	$	21,552		$	19,208		$	15,818
Income taxes	27,902			19,950			8,331
Non-cash investing and financing activities:
Loans transferred to other real estate owned and repossessed assets	3,067			4,824			8,257
Other real estate sales transferred to loans	1,891			—			—
Fair value of loans transferred from held to maturity to available for sale	15,102			18,758			3,196
Gross increase (decrease) in market value adjustment to securities available for sale	1,983			(6,919		)	2,949
Gross (decrease) increase in market value adjustment to derivatives	(783		)	(549		)	401
Investments redeemed, not settled	—			3,769			—
Investments committed to purchase, not settled	—			—			694
Net assets (liabilities) acquired through acquisition	37,070			(501,516		)	463
Proceeds from death benefit on bank-owned life insurance not received	245			437			—
Treasury shares issued	2,258			—			—

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Earnings per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

The following table summarizes the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the years ending December 31:

	2017		2016		2015
Weighted average common shares issued	111,809,880		105,563,455		105,563,455
Average treasury shares	(16,463,079	)	(16,605,461	)	(16,045,900	)
Average deferred compensation shares	(37,411	)	—		—
Average unearned nonvested shares	(89,334	)	(106,421	)	(160,788	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share	95,220,056		88,851,573		89,356,767
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share	73,570		—		—
Additional common stock equivalents (deferred compensation) used to calculated diluted earnings per share	37,411		—		—
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share	95,331,037		88,851,573		89,356,767

The following table shows the number of shares and the price per share related to common stock equivalents that were not included in the computation of diluted earnings per share for the years ended December 31, because to do so would have been anti-dilutive.

	12/31/2017					12/31/2016					12/31/2015
		Price Range					Price Range					Price Range
	Shares	From		To		Shares	From		To		Shares	From		To
Restricted Stock	18,173	$	8.55	$	13.96	67,920	$	8.38	$	13.96	92,002	$	6.82	$	9.84

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Cash and Due from Banks

12 Months Ended

Dec. 31, 2017

Cash and Due from Banks [Abstract]

Cash and Due from Banks

Cash and Due from Banks

Regulations of the Board of Governors of the Federal Reserve System impose uniform reserve requirements on all depository institutions with transaction accounts, such as checking accounts and NOW accounts. Reserves are maintained in the form of vault cash or balances held with the Federal Reserve Bank. First Commonwealth Bank maintained average balances of $10.3 million during 2017 and $5.1 million during 2016 with the Federal Reserve Bank.

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Derivatives

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

Derivatives Not Designated as Hedging Instruments

First Commonwealth is a party to interest rate derivatives that are not designated as hedging instruments. These derivatives relate to interest rate swaps that First Commonwealth enters into with customers to allow customers to convert variable rate loans to a fixed rate. First Commonwealth pays interest to the customer at a floating rate on the notional amount and receives interest from the customer at a fixed rate for the same notional amount. At the same time the interest rate swap is entered into with the customer, an offsetting interest rate swap is entered into with another financial institution. First Commonwealth pays the other financial institution interest at the same fixed rate on the same notional amount as the swap entered into with the customer, and receives interest from the financial institution for the same floating rate on the same notional amount.

The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties.

We have 36 risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution should the borrower fail to perform on its interest rate derivative contract with the financial institution. We have nine risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are the lead bank. The risk participation agreement provides credit protection to us should the borrower fail to perform on its interest rate derivative contract with us.

First Commonwealth is also party to interest rate caps that are not designated as hedging instruments. These derivatives relate to contracts that First Commonwealth enters into with loan customers providing a maximum interest rate on their variable rate loan. At the same time the interest rate cap is entered into with the customer, First Commonwealth enters into an offsetting interest rate cap with another financial institution. The notional amount and maximum interest rate on both interest cap contracts are identical.

The fee received, less the estimate of the loss for the credit exposure, was recognized in earnings at the time of the transaction.

Derivatives Designated as Hedging Instruments

The Company has entered into three interest rate swap contracts which were designated as cash flow hedges. The interest rate swaps have a total notional amount of $150.0 million, $35.0 million with an original maturity of three years and $115.0 million with an original maturity of four years. The Company's risk management objective for these hedges is to reduce its exposure to variability in expected future cash flows related to interest payments on commercial loans benchmarked to the 1-month LIBOR rate. Therefore, the interest rate swaps convert the interest payments on the first $150.0 million of 1-month LIBOR based commercial loans into fixed rate payments.

The periodic net settlement of interest rate swaps is recorded as an adjustment to "Interest and fees on loans" in the Consolidated Statement of Income. For the years ended December 31, 2017, 2016 and 2015, interest income was increased by $0.5 million, $1.6 million and $2.0 million, respectively, as a result of these interest rate swaps. Changes in the fair value of the effective portion of cash flow hedges are reported in OCI. When the cash flows associated with the hedged item are realized, the gain or loss included in OCI is recognized in "Interest and fees on loans," the same line item in the Consolidated Statement of Income as the income on the hedged items. The cash flow hedges were highly effective at December 31, 2017, 2016 and 2015 and changes in the fair value attributed to hedge ineffectiveness were not material.

The Company also enters into interest rate lock commitments in conjunction with its mortgage origination business. These are commitments to originate loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. The Company locks the rate in with an investor and commits to deliver the loan if settlement occurs (“best efforts”) or commits to deliver the locked loan in a binding (“mandatory”) delivery program with an investor. Loans under mandatory rate lock commitments are covered under forward sales contracts of mortgage-backed securities (“MBS”). Forward sales contracts of MBS are recorded at fair value with changes in fair value recorded in "Other noninterest expense" in the Consolidated Statements of Income. The impact to noninterest expense for the years ended December 31, 2017 was a decrease of $19 thousand. There were no interest rate lock commitments in 2016 or 2015.

Interest rate lock commitments and commitments to deliver loans to investors are considered derivatives. The market value of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because they are not actively traded in stand-alone markets. We determine the fair value of rate lock commitments and delivery contracts by measuring the fair value of the underlying asset, which is impacted by current interest rates and taking into consideration the probability that the rate lock commitments will close or will be funded. At December 31, 2017, the underlying funded mortgage loan commitments had a carrying value of $14.3 million and a fair value of $14.7 million, while the underlying unfunded mortgage loan commitments had a notional amount of $13.8 million.

In addition, a small amount of interest income on loans is exposed to changes in foreign exchange rates. Several commercial borrowers have a portion of their operations outside of the United States and borrow funds on a short-term basis to fund those operations. In order to reduce the risk related to the translation of foreign denominated transactions into U.S. dollars, the Company enters into foreign exchange forward contracts. These contracts relate principally to the Euro and the Canadian dollar. The contracts are recorded at fair value with changes in fair value recorded in "Other noninterest expense" in the Consolidated Statements of Income. The impact on other noninterest expense for the year ended December 31, 2017 totaled $4 thousand. At December 31, 2017 and December 31, 2016, the underlying loans had a carrying value of $10.0 million and $4.7 million, respectively, and a fair value of $10.1 million and $4.7 million, respectively.

The following table depicts the credit value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of risk participation agreements participated to other banks at December 31:

	2017			2016
	(dollars in thousands)
Derivatives not Designated as Hedging Instruments
Credit value adjustment	$	(791	)	$	(317	)
Notional Amount:
Interest rate derivatives	401,304			345,102
Interest rate caps	46,444			14,762
Risk participation agreements	197,660			174,213
Sold credit protection on risk participation agreements	(46,170		)	(40,281		)
Derivatives Designated as Hedging Instruments
Interest rate swaps:
Fair value adjustment	459			(443		)
Notional Amount	150,000			200,000
Interest rate forwards:
Fair value adjustment	19			—
Notional Amount	17,000			—
Foreign exchange forwards:
Fair value adjustment	(70		)	(8		)
Notional Amount	10,077			4,749

The table below presents the amount representing the change in the fair value of derivative assets and derivative liabilities attributable to credit risk included in “Other income” on the Consolidated Statements of Income for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Non-hedging interest rate derivatives:
(Decrease) increase in other income	$	(473	)	$	219		$	(274	)
Hedging interest rate derivatives:
Increase in interest income	452			1,627			2,049
Increase in other income	119			70			64
Hedging interest rate forwards:
Decrease in other expense	(19		)	—			—
Hedging interest rate derivatives:
Increase (decrease) in other expense	4			(5		)	—

The fair value of our derivatives is included in a table in Note 19, “Fair Values of Assets and Liabilities,” in the line items “Other assets” and “Other liabilities.”

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Investment Securities

12 Months Ended

Dec. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Securities Available for Sale

Below is an analysis of the amortized cost and fair values of securities available for sale at December 31:

	2017									2016
	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	$	10,556	$	789	$	(7	)	$	11,338	$	15,143	$	1,481	$	(7	)	$	16,617
Mortgage-Backed Securities – Commercial	24,611		—		(462		)	24,149		—		—		—			—
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	632,422		2,622		(9,489		)	625,555		683,601		4,557		(11,305		)	676,853
Mortgage-Backed Securities – Commercial	—		—		—			—		1		—		—			1
Other Government-Sponsored Enterprises	1,098		—		(1		)	1,097		16,700		—		(69		)	16,631
Obligations of States and Political Subdivisions	27,083		327		—			27,410		27,075		195		(41		)	27,229
Corporate Securities	15,907		590		(4		)	16,493		5,903		416		—			6,319
Pooled Trust Preferred Collateralized Debt Obligations	27,499		526		(4,379		)	23,646		39,989		427		(7,124		)	33,292
Total Debt Securities	739,176		4,854		(14,342		)	729,688		788,412		7,076		(18,546		)	776,942
Equities	1,670		—		—			1,670		1,670		—		—			1,670
Total Securities Available for Sale	$	740,846	$	4,854	$	(14,342	)	$	731,358	$	790,082	$	7,076	$	(18,546	)	$	778,612

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 30 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 December 31, 2017, by contractual maturity, are shown below:

	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	1,098	$	1,097
Due after 1 but within 5 years	13,989		14,020
Due after 5 but within 10 years	27,083		27,410
Due after 10 years	29,417		26,119
	71,587		68,646
Mortgage-Backed Securities (a)	667,589		661,042
Total Debt Securities	$	739,176	$	729,688

(a) Mortgage Backed Securities include an amortized cost of $35.2 million and a fair value of $35.5 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $632.4 million and a fair value of $625.6 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, maturities and other-than-temporary impairment charges related to securities available for sale were as follows for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Proceeds from sales	$	143,660		$	55,744		$	88,054
Gross (losses) gains realized:
Sales Transactions:
Gross gains	$	359		$	305		$	—
Gross losses	(316		)	(277		)	(284		)
	43			28			(284		)
Maturities and impairment
Gross gains	5,057			589			131
Gross losses	(60		)	—			—
Other-than-temporary impairment	—			—			—
	4,997			589			131
Net gains and impairment	$	5,040		$	617		$	(153	)

Proceeds from the sales of investments for the year ended December 31, 2017 includes the liquidation of the DCB investment portfolio and the sale of small positions in CMO and MBS investments. During 2017, gross gains from maturities and impairment resulted from the early redemption of two pooled trust preferred securities. The successful auction call of PreSTL XIII provided a gain of $4.3 million and the liquidation of PreSTL VII by senior note holders resulted in a gain of $0.7 million.

Proceeds from the sales of investments in 2016 were related to sales of small positions in CMO's and MBS's. During 2016, a gain of $0.6 million was recognized as a result of the early redemption of a pooled trust preferred security with a book value of $3.1 million. This security was redeemed due to an election by the senior note holders to liquidate the trust.

In 2015, a $0.3 million loss was recognized on the sale of approximately $75.0 million of low-yielding U.S. government agency securities. Proceeds from the sale of these securities were reinvested into higher yielding mortgage-backed securities.

Securities available for sale with an approximate fair value of $569.0 million and $445.8 million were pledged as of December 31, 2017 and 2016, respectively, to secure public deposits and for other purposes required or permitted by law.

Securities Held to Maturity

Below is an analysis of the amortized cost and fair values of debt securities held to maturity at December 31:.

	2017									2016
	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	$	3,925	$	—	$	(14	)	$	3,911	$	4,297	$	—	$	(4	)	$	4,293
Mortgage-Backed Securities – Commercial	58,249		—		(1,394		)	56,855		34,444		—		(561		)	33,883
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	305,126		10		(2,552		)	302,584		280,430		5		(2,527		)	277,908
Mortgage-Backed Securities – Commercial	14,056		—		(71		)	13,985		14,675		—		(142		)	14,533
Obligations of States and Political Subdivisions	40,540		335		(161		)	40,714		38,667		55		(721		)	38,001
Debt Securities Issued by Foreign Governments	200		—		—			200		—		—		—			—
Total Securities Held to Maturity	$	422,096	$	345	$	(4,192	)	$	418,249	$	372,513	$	60	$	(3,955	)	$	368,618

The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2017, 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	$	87	$	87
Due after 1 but within 5 years	3,663		3,660
Due after 5 but within 10 years	35,361		35,534
Due after 10 years	1,629		1,633
	40,740		40,914
Mortgage-Backed Securities (a)	381,356		377,335
Total Debt Securities	$	422,096	$	418,249

(a) Mortgage Backed Securities include an amortized cost of $62.2 million and a fair value of $60.8 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $319.2 million and a fair value of $316.6 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 $338.3 million and $119.2 million were pledged as of December 31, 2017 and 2016, respectively, to secure public deposits for other purposes required or permitted by law.

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Impairment of Investment Securities

12 Months Ended

Dec. 31, 2017

Impairment of Investment Securities Disclosure [Abstract]

Impairment of Investment Securities

Impairment of Investment Securities

Securities Available for Sale

As required by FASB ASC Topic 320, “Investments—Debt and Equity Securities,” credit related other-than-temporary impairment on debt securities is recognized in earnings while non-credit related other-than-temporary impairment on debt securities not expected to be sold is recognized in other comprehensive income (“OCI”). During the years ended December 31, 2017, 2016 and 2015, no other-than-temporary impairment charges were recognized.

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.

We review our investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, 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. In addition, the risk of future other-than-temporary impairment may be influenced by additional bank failures, weakness in the U.S. economy, changes in real estate values and additional interest deferrals in our pooled trust preferred collateralized debt obligations. Our pooled trust preferred collateralized debt obligations are beneficial interests in securitized financial assets within the scope of FASB ASC Topic 325, “Investments—Other,” and are therefore evaluated for other-than-temporary impairment using management’s best estimate of future cash flows. If these estimated cash flows determine it is probable that an adverse change in cash flows has occurred, then other-than-temporary impairment would be recognized in accordance with FASB ASC Topic 320. There is a risk that First Commonwealth will record other-than-temporary impairment charges in the future. See Note 19, “Fair Values of Assets and Liabilities,” for additional information.

The following table presents the gross unrealized losses and estimated fair values at December 31, 2017 for both available for sale and held to maturity securities by investment category and time frame for which the 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	$	5,584	$	(21	)	$	—	$	—		$	5,584	$	(21	)
Mortgage-Backed Securities – Commercial	48,322		(962		)	32,683		(894		)	81,005		(1,856		)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	351,222		(2,295		)	400,984		(9,746		)	752,206		(12,041		)
Mortgage-Backed Securities – Commercial	13,985		(71		)	—		—			13,985		(71		)
Other Government-Sponsored Enterprises	997		(1		)	99		—			1,096		(1		)
Obligations of States and Political Subdivisions	7,144		(32		)	3,653		(129		)	10,797		(161		)
Corporate Securities	3,993		(4		)	—		—			3,993		(4		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			19,120		(4,379		)	19,120		(4,379		)
Total Securities	$	431,247	$	(3,386	)	$	456,539	$	(15,148	)	$	887,786	$	(18,534	)

At December 31, 2017, pooled trust preferred collateralized debt obligations accounted for 24% of unrealized losses due to changes in interest rates and the illiquid market for this type of investment. Fixed income securities issued by U.S. Government-sponsored enterprises comprised 65% of total unrealized losses due to changes in market interest rates. Government agencies and obligations of state and political subdivisions each account for 10% of total unrealized losses as a result of changes in market interest rates. At December 31, 2017, there were 98 debt securities in an unrealized loss position, 30 of which related to residential mortgage-backed securities with an unrealized loss of 12 months or more. There were no equity securities in an unrealized loss position at December 31, 2017.

The following table presents the gross unrealized losses and estimated fair value at December 31, 2016 for both available for sale and held to maturity securities by investment category and time frame for which the securities had 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	$	4,898	$	(11	)	$	—	$	—		$	4,898	$	(11	)
Mortgage-Backed Securities – Commercial	33,883		(561		)	—		—			33,883		(561		)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	670,708		(11,630		)	56,200		(2,202		)	726,908		(13,832		)
Mortgage-Backed Securities – Commercial	14,534		(142		)	—		—			14,534		(142		)
Other Government-Sponsored Enterprises	16,632		(69		)	—		—			16,632		(69		)
Obligations of States and Political Subdivisions	33,277		(762		)	—		—			33,277		(762		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			28,952		(7,124		)	28,952		(7,124		)
Total Securities	$	773,932	$	(13,175	)	$	85,152	$	(9,326	)	$	859,084	$	(22,501	)

As of December 31, 2017, our corporate securities had an amortized cost and estimated fair value of $15.9 million and $16.5 million, respectively, and were comprised of debt for large regional banks. At December 31, 2016, these securities had an amortized cost of $5.9 million and estimated fair value of $6.3 million. There was one corporate security in an unrealized loss position as of December 31, 2017 and no corporate securities in a loss position as of December 31, 2016. When unrealized losses exist, management reviews each of the issuer’s asset quality, earnings trend and capital position, to determine whether issues in an unrealized loss position were other-than-temporarily impaired. All interest payments on the corporate securities are being made as contractually required.

As of December 31, 2017, the book value of our pooled trust preferred collateralized debt obligations totaled $27.5 million with an estimated fair value of $23.6 million, which includes securities comprised of 206 banks and other financial institutions. All of our pooled securities are mezzanine tranches, two of which have no senior class remaining in the issue. The credit ratings on all of the issues are below investment grade. At the time of initial issue, the subordinated tranches ranged in size from approximately 7% to 35% of the total principal amount of the respective securities and no more than 5% of any pooled security consisted of a security issued by any one institution. As of December 31, 2017, after taking into account management’s best estimates of future interest deferrals and defaults, two of our securities had no excess subordination in the tranches we own and five of our securities had excess subordination which ranged from 2% to 72% of the current performing collateral.

The following table provides additional information related to our pooled trust preferred collateralized debt obligations as of December 31, 2017:

Deal	Class	Book Value		Estimated Fair Value		Unrealized Gain (Loss)			Moody’s/ Fitch Ratings	Number of Banks	Deferrals and Defaults as a % of Current Collateral		Excess Subordination as a % of Current Performing Collateral
(dollars in thousands)
PreTSL IV	Mezzanine	$	1,817	$	1,405	$	(412	)	Ba1/BB	6	18.05	%	72.13	%
PreTSL VIII	Mezzanine	2,043		2,228		185			C/C	26	38.52		0.00
PreTSL IX	Mezzanine	2,448		2,052		(396		)	B1/C	37	27.83		19.46
PreTSL X	Mezzanine	1,863		2,125		262			Caa1/C	41	27.93		1.62
PreTSL XII	Mezzanine	6,097		5,209		(888		)	B3/C	63	23.35		0.00
PreTSL XIV	Mezzanine	13,136		10,453		(2,683		)	Ba2/CCC	49	12.95		39.26
MMCap I	Mezzanine	95		174		79			Ca/C	7	69.35		69.99
Total		$	27,499	$	23,646	$	(3,853	)

Lack of liquidity in the market for trust preferred collateralized debt obligations, below investment grade credit rating and market uncertainties related to the financial industry are factors contributing to the impairment on these securities.

In the fourth quarter of 2017, an auction call was successfully completed on PreTSL XIII. This resulted in the security being called at par providing a gain of $4.3 million. The book value of PreTSL XIII before redemption was $13.2 million. In October 2016, the Senior note holders of PreTSL VII elected to liquidate all assets of the trust. The sale of the assets occurred in the fourth quarter of 2016 and the redemption was completed in the first quarter of 2017. Our book value before redemption of PreTSL VII was $3.1 million and, at the time of redemption, a gain of $0.6 million was recognized in 2016 and an additional gain of $0.7 million was recorded in the first quarter of 2017.

All of the Company's pooled trust preferred securities are included in the non-exclusive list issued by the regulatory agencies and therefore are not considered covered funds under the Volcker Rule.

On a quarterly basis we evaluate our debt securities for other-than-temporary impairment. For the years ended December 31, 2017, 2016 and 2015 there were no credit related other-than-temporary impairment charges recognized on our pooled trust preferred collateralized debt obligations. When evaluating these investments we determine a credit related portion and a non-credit related portion of other-than-temporary impairment. The credit related portion is recognized in earnings and represents the difference between book value and the present value of future cash flows. The non-credit related portion is recognized in OCI and represents the difference between the fair value of the security and the amount of credit related impairment. A discounted cash flow analysis provides the best estimate of credit related other-than-temporary impairment for these securities.

Additional information related to the discounted cash flow analysis follows:

Our pooled trust preferred collateralized debt obligations are measured for other-than-temporary impairment within the scope of FASB ASC Topic 325 by determining whether it is probable that an adverse change in estimated cash flows has occurred. Determining whether there has been an adverse change in estimated cash flows from the cash flows previously projected involves comparing the present value of remaining cash flows previously projected against the present value of the cash flows estimated at December 31, 2017. We consider the discounted cash flow analysis to be our primary evidence when determining whether credit related other-than-temporary impairment exists.

Results of a discounted cash flow test are significantly affected by other variables such as the estimate of future cash flows, credit worthiness of the underlying banks and determination of probability of default of the underlying collateral. The following provides additional information for each of these variables:

• Estimate of Future Cash Flows—Cash flows are constructed in an INTEX cash flow model which includes each deal’s structural features. Projected cash flows include prepayment assumptions, which are dependent on the issuer's asset size and coupon rate. For collateral issued by financial institutions over $15 billion in asset size with a coupon over 7%, a 100% prepayment rate is assumed. Financial institutions over $15 billion with a coupon of 7% or under are assigned a prepayment rate of 40% for two years and 2% thereafter. Financial institutions with assets between $2 billion and $15 billion with coupons over 7% are assigned a 5% prepayment rate. For financial institutions below $2 billion, if the coupon is over 10%, a prepayment rate of 5% is assumed and for all other issuers, there is no prepayment assumption incorporated into the cash flows. The modeled cash flows are then used to estimate if all the scheduled principal and interest payments of our investments will be returned.

• Credit Analysis—A quarterly credit evaluation is performed for each of the 206 banks comprising the collateral across the various pooled trust preferred securities. Our credit evaluation considers all evidence available to us and includes the nature of the issuer’s business, its years of operating history, corporate structure, loan composition, loan concentrations, deposit mix, asset growth rates, geographic footprint and local economic environment. Our analysis focuses on profitability, return on assets, shareholders’ equity, net interest margin, credit quality ratios, operating efficiency, capital adequacy and liquidity.

• Probability of Default—A probability of default is determined for each bank and is used to calculate the expected impact of future deferrals and defaults on our expected cash flows. Each bank in the collateral pool is assigned a probability of default for each year until maturity. Currently, any bank that is in default is assigned a 100% probability of default and a 0% projected recovery rate. All other banks in the pool are assigned a probability of default based on their unique credit characteristics and market indicators with a 10% projected recovery rate. For the majority of banks currently in deferral we assume the bank continues to defer and will eventually default and therefore a 100% probability of default is assigned. However, for some deferring collateral there is the possibility that they become current on interest or principal payments at some point in the future and in those cases a probability that the deferral will ultimately cure is assigned. The probability of default is updated quarterly. As of December 31, 2017, default probabilities for performing collateral ranged from 0.33% to 50%.

Our credit evaluation provides a basis for determining deferral and default probabilities for each underlying piece of collateral. Using the results of the credit evaluation, the next step of the process is to look at pricing of senior debt or credit default swaps for the issuer (or where such information is unavailable, for companies having similar credit profiles as the issuer). The pricing of these market indicators provides the information necessary to determine appropriate default probabilities for each bank.

In addition to the above factors, our evaluation of impairment also includes a stress test analysis which provides an estimate of excess subordination for each tranche. We stress the cash flows of each pool by increasing current default assumptions to the level of defaults which results in an adverse change in estimated cash flows. This stressed breakpoint is then used to calculate excess subordination levels for each pooled trust preferred security. The results of the stress test allows management to identify those pools that are at a greater risk for a future break in cash flows so that we can monitor banks in those pools more closely for potential deterioration of credit quality.

Our cash flow analysis as of December 31, 2017, indicates that no credit related other-than-temporary impairment has occurred on our pooled trust preferred securities during the year ended December 31, 2017. Based upon the analysis performed by management, it is probable that two of our pooled trust preferred securities are expected to experience contractual principal and interest shortfalls and therefore appropriate other-than-temporary impairment charges were recorded in prior periods. These securities are identified in the previous table with 0% “Excess Subordination as a % of Current Performing Collateral.” For the remaining securities in the table, our analysis as of December 31, 2017 indicates that it is probable that we will collect all contractual principal and interest payments. For four of those securities, PreTSL IX, PreTSL X, PreTSL XIV and MMCap I, other-than-temporary impairment charges were recorded in prior periods; however, due to improvement in the expected cash flows of these securities, it is now probable that all contractual payments will be received.

During 2008, 2009 and 2010, other-than-temporary impairment charges were recognized on all of our pooled trust preferred securities, except for PreTSL IV. Our cash flow analysis as of December 31, 2017, for all of these impaired securities indicates that it is now probable we will collect principal and interest in excess of what was estimated at the time other-than-temporary impairment charges were recorded. This change can be attributed to improvement in the underlying collateral for these securities and has resulted in the present value of estimated future principal and interest payments exceeding the securities' current book value. The excess for each bond of the present value of future cash flows over our current book value ranges from 18% to 104% and will be recognized as an adjustment to yield over the remaining life of these securities. The excess subordination recognized as an adjustment to yield is reflected in the following table as increases in cash flows expected to be collected.

The table below provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Balance, beginning (a)	$	17,056		$	24,851		$	26,246
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—			—
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—			—
Increases in cash flows expected to be collected, recognized over the remaining life of the security (b)	(890		)	(1,124		)	(1,177		)
Reduction for debt securities called during the period	(3,958		)	(6,671		)	(218		)
Balance, ending	$	12,208		$	17,056		$	24,851

(a) The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

(b) Represents the increase in cash flows recognized either as principal payments or interest income during the period.

For the years ended December 31, 2017, 2016 and 2015, there was no impairment recognized on equity securities. On a quarterly basis, management evaluates equity securities for other-than-temporary impairment. As part of this evaluation we review the severity and duration of decline in estimated fair value, research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, regulatory filings, impact of interest rate changes and other relevant information. There were no equity securities in an unrealized loss position as of December 31, 2017 and 2016.

In the table above, the $4.0 million reduction in cumulative credit losses in 2017 and the $6.7 million reduction in 2016 related to the early redemption of PreTSL XIII and PreTSL VII, respectively.

Other Investments

As a member of the 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 December 31, 2017 and 2016, our FHLB stock totaled $29.8 million and $36.5 million, respectively and is included in “Other investments” on the 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 for the year ended December 31, 2017.

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Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2017

Loans and Leases Receivable Disclosure [Abstract]

Loans and Allowance for Credit Losses

Loans and Allowance for Credit Losses

The following table provides outstanding balances related to each of our loan types as of December 31:

	2017						2016
	Originated Loans		Acquired Loans		Total Loans		Originated Loans		Acquired Loans		Total Loans
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,122,741	$	40,642	$	1,163,383	$	1,131,148	$	8,399	$	1,139,547
Real estate construction	242,905		5,963		248,868		217,840		1,781		219,621
Residential real estate	1,206,119		220,251		1,426,370		1,165,851		63,341		1,229,192
Commercial real estate	1,892,185		126,911		2,019,096		1,717,043		25,167		1,742,210
Loans to individuals	543,411		6,248		549,659		546,589		2,188		548,777
Total loans	$	5,007,361	$	400,015	$	5,407,376	$	4,778,471	$	100,876	$	4,879,347

Credit Quality Information

As part of the on-going monitoring of credit quality within the loan portfolio, the following credit worthiness categories are used in grading our loans:

Pass	Acceptable levels of risk exist in the relationship. Includes all loans not classified as OAEM, substandard or doubtful.
Other Assets Especially Mentioned (OAEM)	Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Bank’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected.
Substandard	Well-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard.
Doubtful	Loans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable.

The use of creditworthiness categories to grade loans permits management’s use of migration analysis to estimate a portion of credit risk. The Company’s internal creditworthiness grading system provides a measurement of credit risk based primarily on an evaluation of the borrower’s cash flow and collateral. Movements between these rating categories provide a predictive measure of credit losses and therefore assist in determining the appropriate level for the loan loss reserves. Category ratings are reviewed each quarter, at which time management analyzes the results, as well as other external statistics and factors related to loan performance. Loans that migrate towards higher risk rating levels generally have an increased risk of default, whereas loans that migrate toward lower risk ratings generally will result in a lower risk factor being applied to those related loan balances.

The following tables represent our credit risk profile by creditworthiness category for the years ended December 31:

	2017
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated Loans
Pass	$	1,061,147	$	242,905	$	1,194,352	$	1,855,253	$	543,175	$	4,896,832
Non-Pass
OAEM	26,757		—		1,435		13,326		—		41,518
Substandard	30,431		—		10,332		23,606		236		64,605
Doubtful	4,406		—		—		—		—		4,406
Total Non-Pass	61,594		—		11,767		36,932		236		110,529
Total	$	1,122,741	$	242,905	$	1,206,119	$	1,892,185	$	543,411	$	5,007,361
Acquired Loans
Pass	$	34,573	$	5,963	$	217,824	$	121,536	$	6,231	$	386,127
Non-Pass
OAEM	5,567		—		798		3,517		—		9,882
Substandard	502		—		1,629		1,858		17		4,006
Doubtful	—		—		—		—		—		—
Total Non-Pass	6,069		—		2,427		5,375		17		13,888
Total	$	40,642	$	5,963	$	220,251	$	126,911	$	6,248	$	400,015

	2016
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated Loans
Pass	$	1,038,844	$	217,565	$	1,152,511	$	1,691,220	$	546,316	$	4,646,456
Non-Pass
OAEM	27,387		275		5,923		7,596		—		41,181
Substandard	64,917		—		7,417		18,227		273		90,834
Doubtful	—		—		—		—		—		—
Total Non-Pass	92,304		275		13,340		25,823		273		132,015
Total	$	1,131,148	$	217,840	$	1,165,851	$	1,717,043	$	546,589	$	4,778,471
Acquired Loans
Pass	$	7,591	$	1,781	$	62,919	$	24,043	$	2,185	$	98,519
Non-Pass
OAEM	486		—		—		—		—		486
Substandard	322		—		422		1,124		3		1,871
Doubtful	—		—		—		—		—		—
Total Non-Pass	808		—		422		1,124		3		2,357
Total	$	8,399	$	1,781	$	63,341	$	25,167	$	2,188	$	100,876

Portfolio Risks

The credit quality of our loan portfolio can potentially represent significant risk to our earnings, capital, regulatory agency relationships, investment community and shareholder returns. First Commonwealth devotes a substantial amount of resources managing this risk primarily through our credit administration department that develops and administers policies and procedures for underwriting, maintaining, monitoring and collecting activities. Credit administration is independent of lending departments and oversight is provided by the credit committee of the First Commonwealth Board of Directors.

Total gross charge-offs for the years ended December 31, 2017 and 2016 were $12.5 million and $26.3 million, respectively.

Criticized loans have been evaluated when determining the appropriateness of the allowance for credit losses, which we believe is adequate to absorb losses inherent to the portfolio as of December 31, 2017. However, changes in economic conditions, interest rates, borrower financial condition, delinquency trends or previously established fair values of collateral factors could significantly change those judgmental estimates.

Age Analysis of Past Due Loans by Segment

The following tables delineate the aging analysis of the recorded investments in past due loans as of December 31. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.

	2017
	30 - 59 days past due		60 - 89 days past due		90 days and greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Originated Loans
Commercial, financial, agricultural and other	$	378	$	61	$	40	$	18,741	$	19,220	$	1,103,521	$	1,122,741
Real estate construction	199		—		—		—		199		242,706		242,905
Residential real estate	4,618		1,025		1,076		6,225		12,944		1,193,175		1,206,119
Commercial real estate	2,198		28		6		3,240		5,472		1,886,713		1,892,185
Loans to individuals	1,899		769		623		236		3,527		539,884		543,411
Total	$	9,292	$	1,883	$	1,745	$	28,442	$	41,362	$	4,965,999	$	5,007,361
Acquired Loans
Commercial, financial, agricultural and other	$	6	$	7	$	—	$	436	$	449	$	40,193	$	40,642
Real estate construction	—		—		—		—		—		5,963		5,963
Residential real estate	148		9		83		705		945		219,306		220,251
Commercial real estate	—		—		—		1,077		1,077		125,834		126,911
Loans to individuals	36		20		26		17		99		6,149		6,248
Total	$	190	$	36	$	109	$	2,235	$	2,570	$	397,445	$	400,015

	2016
	30 - 59 days past due		60 - 89 days past due		90 days and greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Originated Loans
Commercial, financial, agricultural and other	$	2,380	$	171	$	75	$	17,928	$	20,554	$	1,110,594	$	1,131,148
Real estate construction	183		—		—		—		183		217,657		217,840
Residential real estate	4,133		1,089		995		5,792		12,009		1,153,842		1,165,851
Commercial real estate	265		327		57		3,443		4,092		1,712,951		1,717,043
Loans to individuals	1,640		776		970		273		3,659		542,930		546,589
Total	$	8,601	$	2,363	$	2,097	$	27,436	$	40,497	$	4,737,974	$	4,778,471
Acquired Loans
Commercial, financial, agricultural and other	$	486	$	—	$	—	$	—	$	486	$	7,913	$	8,399
Real estate construction	—		—		—		—		—		1,781		1,781
Residential real estate	148		39		34		422		643		62,698		63,341
Commercial real estate	—		—		—		162		162		25,005		25,167
Loans to individuals	1		7		—		3		11		2,177		2,188
Total	$	635	$	46	$	34	$	587	$	1,302	$	99,574	$	100,876

Nonaccrual Loans

The previous tables summarize nonaccrual loans by loan segment. The Company generally places loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain, when part of the principal balance has been charged off and no restructuring has occurred, or the loans reach a certain number of days past due. Generally, loans 90 days or more past due are placed on nonaccrual status, except for consumer loans which are placed in nonaccrual status at 150 days past due.

When a loan is placed on nonaccrual, the accrued unpaid interest receivable is reversed against interest income and all future payments received are applied as a reduction to the loan principal. Generally, the loan is returned to accrual status when (a) all delinquent interest and principal become current under the terms of the loan agreement or (b) the loan is both well-secured and in the process of collection and collectability is no longer in doubt.

Impaired Loans

Management considers loans to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Determination of impairment is treated the same across all loan categories. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole source or repayment for the loan is the operation or liquidation of collateral. When the loan is collateral dependent, the appraised value less estimated cost to sell is utilized. If management determines the value of the impaired loan is less than the recorded investment in the loan, impairment is recognized through an allowance estimate or a charge-off to the allowance. Troubled debt restructured loans on accrual status are considered to be impaired loans.

When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method.

There were no impaired loans held for sale at December 31, 2017 and December 31, 2016. Total gains of $21 thousand were recognized on sales of impaired loans during the year ended December 31, 2017. No gains were recognized on sales of impaired loans during the year ended December 31, 2016.

The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of December 31, 2017 and 2016. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired for the years ended December 31, 2017, 2016 and 2015. Average balances are calculated based on month-end balances of the loans for the period reported and are included in the table below based on its period end allowance position.

	2017
	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest Income Recognized
	(dollars in thousands)
Originated Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	5,548	$	12,153			$	10,282	$	394
Real estate construction	—		—				—		—
Residential real estate	10,625		12,470				11,366		355
Commercial real estate	5,155		5,489				6,469		583
Loans to individuals	347		383				353		19
Subtotal	21,675		30,495				28,470		1,351
With an allowance recorded:
Commercial, financial, agricultural and other	16,866		21,094		$	3,478	9,391		96
Real estate construction	—		—		—		—		—
Residential real estate	456		478		107		167		—
Commercial real estate	954		954		128		143		4
Loans to individuals	—		—		—		—		—
Subtotal	18,276		22,526		3,713		9,701		100
Total	$	39,951	$	53,021	$	3,713	$	38,171	$	1,451
Acquired Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	436	$	449			$	476	$	—
Real estate construction	—		—				25		—
Residential real estate	666		965				535		—
Commercial real estate	940		1,842				2,135		—
Loans to individuals	17		17				6		—
Subtotal	2,059		3,273				3,177		—
With an allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—
Real estate construction	—		—		—		—		—
Residential real estate	93		122		4		74		—
Commercial real estate	137		150		29		155		—
Loans to individuals	—		—		—		—		—
Subtotal	230		272		33		229		—
Total	$	2,289	$	3,545	$	33	$	3,406	$	—

	2016
	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest Income Recognized
	(dollars in thousands)
Originated Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	9,549	$	15,369			$	23,146	$	576
Real estate construction	—		—				4		44
Residential real estate	10,873		13,004				10,957		312
Commercial real estate	5,765		6,905				6,718		170
Loans to individuals	382		507				409		15
Subtotal	26,569		35,785				41,234		1,117
With an allowance recorded:
Commercial, financial, agricultural and other	13,423		19,226		$	2,530	13,885		99
Real estate construction	—		—		—		—		—
Residential real estate	424		475		164		241		4
Commercial real estate	810		810		434		555		25
Loans to individuals	—		—		—		—		—
Subtotal	14,657		20,511		3,128		14,681		128
Total	$	41,226	$	56,296	$	3,128	$	55,915	$	1,245
Acquired Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	—	$	—			$	—	$	—
Real estate construction	—		—				—		—
Residential real estate	406		480				406		—
Commercial real estate	162		162				162		—
Loans to individuals	3		3				3		—
Subtotal	571		645				571		—
With an allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—
Real estate construction	—		—		—		—		—
Residential real estate	16		16		16		16		—
Commercial real estate	—		—		—		—		—
Loans to individuals	—		—		—		—		—
Subtotal	16		16		16		16		—
Total	$	587	$	661	$	16	$	587	$	—

	2015
	Average recorded investment		Interest Income Recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other	$	17,692	$	216
Real estate construction	95		—
Residential real estate	10,635		172
Commercial real estate	7,890		90
Loans to individuals	338		4
Subtotal	36,650		482
With an allowance recorded:
Commercial, financial, agricultural and other	7,731		129
Real estate construction	—		—
Residential real estate	403		—
Commercial real estate	674		4
Loans to individuals	—		—
Subtotal	8,808		133
Total	$	45,458	$	615

Unfunded commitments related to nonperforming loans were $2.4 million and $1.8 million at December 31, 2017 and 2016, respectively. After considering the collateral related to these commitments, a reserve of $178 thousand and $12 thousand was established for these off balance sheet exposures at December 31, 2017 and 2016, respectively.

Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources.

The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans as of December 31:

	2017		2016		2015
	(dollars in thousands)
Troubled debt restructured loans
Accrual status	$	11,563	$	13,790	$	14,139
Nonaccrual status	11,222		11,569		12,360
Total	$	22,785	$	25,359	$	26,499
Commitments
Letters of credit	$	60	$	—	$	—
Unused lines of credit	$	54	$	358	$	3,252
Total	$	114	$	358	$	3,252

The following tables provide detail, including specific reserve and reasons for modification, related to loans identified as troubled debt restructurings during the years ending December 31:

	2017
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	6	$	6,768	$	1,806	$	987	$	9,561	$	6,946	$	566
Residential real estate	20	134		261		573		968		851		1
Commercial real estate	5	179		—		269		448		412		29
Loans to individuals	10	—		28		49		77		65		—
Total	41	$	7,081	$	2,095	$	1,878	$	11,054	$	8,274	$	596

	2016
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	5	$	23	$	6,318	$	3,854	$	10,195	$	6,210	$	317
Residential real estate	39	107		214		2,619		2,940		2,698		124
Commercial real estate	8	1,368		—		25		1,393		1,271		59
Loans to individuals	13	23		82		25		130		96		—
Total	65	$	1,521	$	6,614	$	6,523	$	14,658	$	10,275	$	500

	2015
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	12	$	1,751	$	3,195	$	4,527	$	9,473	$	8,823	$	1,330
Residential real estate	32	—		296		1,414		1,710		1,575		2
Commercial real estate	1	—		—		464		464		389		—
Loans to individuals	16	3		167		35		205		169		—
Total	61	$	1,754	$	3,658	$	6,440	$	11,852	$	10,956	$	1,332

The troubled debt restructurings included in the above tables are also included in the impaired loan tables provided earlier in this footnote. Loans defined as modified due to a change in rate include loans that were modified for a change in rate as well as a reamortization of the principal and an extension of the maturity. For the years ended December 31, 2017, 2016 and 2015, $0.3 million, $6.6 million and $3.7 million, respectively, of total rate modifications represent loans with modifications to the rate as well as payment due to reamortization.

A troubled debt restructuring is considered to be in default when a restructured loan is 90 days or more past due. The following table provides information related to restructured loans that were considered to be in default during the year ending December 31:

	2017			2016			2015
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars in thousands)
Residential real estate	—	$	—	4	$	313	3	$	97
Loans to individuals	1	2		—	—		—	—
Total	1	$	2	4	$	313	3	$	97

The following tables provide detail related to the allowance for credit losses for the years ended December 31.

	2017
	Commercial, financial, agricultural and other			Real estate construction			Residential real estate			Commercial real estate			Loans to individuals			Total
	(dollars in thousands)
Allowance for credit losses:
Originated Loans:
Beginning balance	$	35,974		$	577		$	2,492		$	6,619		$	4,504		$	50,166
Charge-offs	(6,176		)	—			(1,261		)	(340		)	(4,220		)	(11,997		)
Recoveries	3,900			465			304			274			460			5,403
Provision (credit)	(10,280		)	307			1,218			10,775			2,660			4,680
Ending balance	23,418			1,349			2,753			17,328			3,404			48,252
Acquired Loans:
Beginning balance	$	—		$	—		$	19		$	—		$	—		$	19
Charge-offs	(458		)	—			(26		)	—			(28		)	(512		)
Recoveries	1			5			67			4			55			132
Provision (credit)	468			(5		)	(54		)	25			(27		)	407
Ending balance	11			—			6			29			—			46
Total ending balance	$	23,429		$	1,349		$	2,759		$	17,357		$	3,404		$	48,298
Ending balance: individually evaluated for impairment	$	3,478		$	—		$	111		$	157		$	—		$	3,746
Ending balance: collectively evaluated for impairment	19,951			1,349			2,648			17,200			3,404			44,552
Loans:
Ending balance	1,163,383			248,868			1,426,370			2,019,096			549,659			5,407,376
Ending balance: individually evaluated for impairment	22,450			—			6,698			6,003			—			35,151
Ending balance: collectively evaluated for impairment	1,140,933			248,868			1,419,672			2,013,093			549,659			5,372,225

	2016
	Commercial, financial, agricultural and other			Real estate construction			Residential real estate			Commercial real estate			Loans to individuals			Total
	(dollars in thousands)
Allowance for credit losses:
Beginning balance	$	31,035		$	887		$	2,606		$	11,924		$	4,360		$	50,812
Charge-offs	(19,603		)	—			(1,189		)	(570		)	(4,943		)	(26,305		)
Recoveries	4,164			562			481			1,522			469			7,198
Provision (credit)	20,378			(872		)	594			(6,257		)	4,618			18,461
Ending balance on originated loans	35,974			577			2,492			6,619			4,504			50,166
Ending balance on acquired loans (1)	—			—			19			—			—			19
Total ending balance	$	35,974		$	577		$	2,511		$	6,619		$	4,504		$	50,185
Ending balance: individually evaluated for impairment	$	2,530		$	—		$	180		$	434		$	—		$	3,144
Ending balance: collectively evaluated for impairment	33,444			577			2,331			6,185			4,504			47,041
Loans:
Ending balance	1,139,547			219,621			1,229,192			1,742,210			548,777			4,879,347
Ending balance: individually evaluated for impairment	22,325			—			5,875			5,468			—			33,668
Ending balance: collectively evaluated for impairment	1,117,222			219,621			1,223,317			1,736,742			548,777			4,845,679

⁽¹⁾ Amount reflects provision expense and ending allowance balance for loans acquired in 2016 as part of the purchase of FirstMerit branches.

	2015
	Commercial, financial, agricultural and other			Real estate construction			Residential real estate			Commercial real estate			Loans to individuals			Total
	(dollars in thousands)
Allowance for credit losses:
Beginning balance	$	29,627		$	2,063		$	3,664		$	11,881		$	4,816		$	52,051
Charge-offs	(11,429		)	(8		)	(1,539		)	(1,538		)	(4,354		)	(18,868		)
Recoveries	1,097			84			587			229			684			2,681
Provision (credit)	11,740			(1,252		)	(106		)	1,352			3,214			14,948
Ending balance	$	31,035		$	887		$	2,606		$	11,924		$	4,360		$	50,812
Ending balance: individually evaluated for impairment	$	6,952		$	—		$	51		$	42		$	—		$	7,045
Ending balance: collectively evaluated for impairment	24,083			887			2,555			11,882			4,360			43,767
Loans:
Ending balance	1,150,906			220,736			1,224,465			1,479,000			608,643			4,683,750
Ending balance: individually evaluated for impairment	30,767			—			6,099			7,143			—			44,009
Ending balance: collectively evaluated for impairment	1,120,139			220,736			1,218,366			1,471,857			608,643			4,639,741

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Commitments and Letters of Credit

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Letters of Credit

Commitments and Letters of Credit

First Commonwealth is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. First Commonwealth’s exposure to credit loss in the event of nonperformance by the other party of the financial instrument for commitments to extend credit, standby letters of credit and commercial letters of credit is represented by the contract or notional amount of those instruments. First Commonwealth uses the same credit policies for underwriting all loans, including these commitments and conditional obligations.

As of December 31, 2017 and 2016, First Commonwealth did not own or trade other financial instruments with significant off-balance sheet risk including derivatives such as futures, forwards, option contracts and the like, although such instruments may be appropriate to use in the future to manage interest rate risk. See Note 8, “Derivatives,” for a description of interest rate derivatives entered into by First Commonwealth.

Standby letters of credit and commercial letters of credit are conditional commitments issued by First Commonwealth to guarantee the performance of a customer to a third party. The contract or notional amount of these instruments reflects the maximum amount of future payments that First Commonwealth could be required to pay under the guarantees if there were a total default by the guaranteed parties, without consideration for possible recoveries under recourse provisions or from collateral held or pledged. In addition, many of these commitments are expected to expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements.

The following table identifies the notional amount of those instruments at December 31:

	2017		2016
	(dollars in thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,840,180	$	1,733,820
Financial standby letters of credit	17,946		18,108
Performance standby letters of credit	20,472		26,630
Commercial letters of credit	1,149		1,301

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. First Commonwealth evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by First Commonwealth upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral that is held varies but may include accounts receivable, inventory, property, plant and equipment, and residential and income-producing commercial properties.

The notional amounts outstanding at December 31, 2017 include amounts issued in 2017 of $1.5 million in financial standby letters of credit and $5.1 million in performance standby letters of credit. There were $0.3 million commercial letters of credit issued during 2017. A liability of $0.2 million has been recorded as of both December 31, 2017 and 2016, which represents the estimated fair value of letters of credit issued. The fair value of letters of credit is estimated based on the unrecognized portion of fees received at the time the commitment was issued.

Unused commitments and letters of credit provide exposure to future credit loss in the event of nonperformance by the borrower or guaranteed parties. Management’s evaluation of the credit risk in these commitments resulted in the recording of a liability of $5.2 million and $4.1 million as of December 31, 2017 and 2016, respectively. This liability is reflected in “Other liabilities” in the Consolidated Statements of Financial Condition. The credit risk evaluation incorporated probability of default, loss given default and estimated utilization for the next twelve months for each loan category and the letters of credit.

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Premises and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

Premises and equipment are described as follows:

	Estimated Useful Life	2017		2016
	(dollars in thousands)
Land	Indefinite	$	15,389	$	13,679
Buildings and improvements	10-50 years	88,386		80,364
Leasehold improvements	5-40 years	17,812		15,871
Furniture and equipment	3-7 years	64,609		61,324
Software	3-7 years	37,434		36,077
Subtotal		223,630		207,315
Less accumulated depreciation and amortization		142,291		139,781
Total premises and equipment		$	81,339	$	67,534

Depreciation related to premises and equipment included in noninterest expense for the years ended December 31, 2017, 2016 and 2015 amounted to $9.0 million, $7.5 million and $7.2 million, respectively.

First Commonwealth leases various premises and assorted equipment under non-cancellable agreements. Total future minimal rental commitments at December 31, 2017, were as follows:

	Premises		Equipment
	(dollars in thousands)
2018	$	4,459	$	136
2019	4,106		78
2020	3,348		15
2021	2,929		5
2022	2,646		—
Thereafter	12,851		—
Total	$	30,339	$	234

Included in the lease commitments above is $141 thousand in lease payments to be paid under a sale-leaseback arrangement. The sale-leaseback transaction occurred in 2005 and resulted in a gain of $297 thousand on the sale of a branch that is being recognized over the 15 year lease term through 2020.

Increases in utilities and taxes that may be passed on to the lessee under the terms of various lease agreements are not reflected in the above table. However, certain lease agreements provide for increases in rental payments based upon historical increases in the consumer price index or the lessor’s cost of operating the facility, and are included in the minimum lease commitments. Additionally, the table above includes rent expense that is recognized for rent holidays and during construction periods. Total lease expense amounted to $2.7 million, $3.7 million and $2.9 million in 2017, 2016 and 2015, respectively.

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Goodwill and Other Amortizing Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill Disclosure [Abstract]

Goodwill and Other Amortizing Intangible Assets

Goodwill and Other Amortizing Intangible Assets

FASB ASC Topic 350-20, “Intangibles—Goodwill and Other,” requires an annual valuation of the fair value of a reporting unit that has goodwill and a comparison of the fair value to the book value of equity to determine whether the goodwill has been impaired. Goodwill is also required to be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. When triggering events or circumstances indicate goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. ASU 2011-8 provides that if an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required.

We consider First Commonwealth to be one reporting unit. The carrying amount of goodwill as of December 31, 2017 and 2016 was $255.4 million and $186.5 million, respectively. The $68.9 million increase in goodwill during the year ended December 31, 2017 is a result of $70.6 million recognized as a result of the acquisition of DCB Financial in 2017 offset by a $1.6 million decrease related to adjustments to the fair value of assets acquired as part of the branch acquisition in 2016. No impairment charges on goodwill or other intangible assets were incurred in 2017, 2016 or 2015.

We test goodwill for impairment as of November 30th each year and again at any quarter-end if any material events occur during a quarter that may affect goodwill.

An assessment of qualitative factors was completed as of November 30, 2017 and December 31, 2017 and indicated that it is more likely than not that the fair value of First Commonwealth's goodwill exceeds its carrying amount; therefore, the two step goodwill impairment test was not considered necessary. The assessment of qualitative factors considered historical and projected financial performance, macroeconomic factors such as the Company's access to capital, the general business climate and changes in the banking industry as well as market considerations such as geographic expansion, new product offerings and the regulatory environment.

As of December 31, 2017, goodwill was not considered impaired; however, changing economic conditions that may adversely affect our performance, the fair value of our assets and liabilities, or our stock price could result in impairment, which could adversely affect earnings in future periods. Management will continue to monitor events that could impact this conclusion in the future.

FASB ASC Topic 350, “Intangibles—Other,” also requires that an acquired intangible asset be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, transferred, licensed, rented or exchanged, regardless of the acquirer’s intent to do so.

The following table summarizes other intangible assets:

	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets
	(dollars in thousands)
December 31, 2017
Customer deposit intangibles	$	19,471	$	(6,071	)	$	13,400
Customer list intangible	$	2,283	$	(751	)	$	1,532
Total other intangible assets	$	21,754	$	(6,822	)	$	14,932
December 31, 2016
Customer deposit intangibles	$	30,471	$	(18,998	)	$	11,473
Customer list intangible	$	984	$	(444	)	$	540
Total other intangible assets	$	31,455	$	(19,442	)	$	12,013

Core deposits are amortized over their expected lives using the present value of the benefit of the core deposits and straight-line methods of amortization. The core deposits have a remaining amortization period of 9.3 years and a weighted average amortization period of approximately 8.9 years. The customer list intangible represents the estimated value of the customer base for an insurance agency acquired in 2014 and the wealth management business acquired as part of the DCB acquisition in 2017. These amounts are amortized over their expected lives using expected cash flows based on retention of the customer base. The customer list intangible has a remaining amortization period of 11.7 years and a weighted average amortization period of 9.9 years. In the table above, the change in the gross customer deposit intangible and customer list intangibles from December 31, 2016 to December 31, 2017 is due to the acquisition of DCB Financial resulting in $4.7 million of core deposit intangibles and $1.3 million of customer list intangibles. In addition, $15.7 million of customer deposit intangibles resulting from an acquisition in 2006 were completely amortized in 2016. In addition to customer deposit intangibles and customer list intangibles, First Commonwealth has $75 thousand in mortgage servicing rights related to the sale of 1-4 family residential mortgages for which we retain servicing. First Commonwealth recognized amortization expense on other intangible assets of $3.1 million, $0.5 million, and $0.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The following presents the estimated amortization expense of core deposit and customer list intangibles:

	Core Deposit Intangibles		Customer List Intangible		Total
	(dollars in thousands)
2018	$	2,714	$	318	$	3,032
2019	2,414		271		2,685
2020	2,062		230		2,292
2021	1,768		193		1,961
2022	1,473		159		1,632
Thereafter	2,969		361		3,330
Total	$	13,400	$	1,532	$	14,932

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Interest-Bearing Deposits

12 Months Ended

Dec. 31, 2017

Deposits [Abstract]

Interest-Bearing Deposits

Interest-Bearing Deposits

Components of interest-bearing deposits at December 31 were as follows:

	2017		2016
	(dollars in thousands)
Interest-bearing demand deposits	$	187,281	$	114,043
Savings deposits	3,361,840		2,972,747
Time deposits	614,813		591,832
Total interest-bearing deposits	$	4,163,934	$	3,678,622

Interest-bearing deposits at December 31, 2017 and 2016, include allocations from interest-bearing demand deposit accounts of $919.1 million and $779.2 million, respectively, into savings, which includes money market accounts. These reallocations are based on a formula and have been made to reduce First Commonwealth’s reserve requirement in compliance with regulatory guidelines.

Included in time deposits at December 31, 2017 and 2016, were certificates of deposit in denominations of $100 thousand or more of $210.4 million and $145.4 million, respectively.

Interest expense related to certificates of deposit in denominations of $100 thousand or greater amounted to $1.5 million in 2017, $1.2 million in 2016 and $1.8 million in 2015.

Included in time deposits at December 31, 2017, were certificates of deposit with the following scheduled maturities (dollars in thousands):

2018	$	376,181
2019	144,091
2020	43,463
2021	35,530
2022 and thereafter	15,548
Total	$	614,813

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Short-term Borrowings

12 Months Ended

Dec. 31, 2017

Short-term Debt [Abstract]

Short-term Borrowings

Short-term Borrowings

Short-term borrowings at December 31 were as follows:

	2017						2016						2015
	Ending Balance		Average Balance		Average Rate		Ending Balance		Average Balance		Average Rate		Ending Balance		Average Balance		Average Rate
	(dollars in thousands)
Federal funds purchased	$	—	$	6,225	1.24	%	$	—	$	6,887	0.60	%	$	4,000	$	14,832	0.36	%
Borrowings from FHLB	567,500		710,932		1.18		748,000		1,265,932		0.61		1,400,000		1,117,522		0.42
Securities sold under agreements to repurchase	139,966		150,234		0.24		119,943		114,918		0.23		106,825		120,177		0.23
Total	$	707,466	$	867,391	1.01		$	867,943	$	1,387,737	0.58		$	1,510,825	$	1,252,531	0.40
Maximum total at any month-end	$	967,259					$	1,530,678					$	1,510,825
Weighted average rate at year-end					1.27	%					0.63	%					0.53	%

Interest expense on short-term borrowings for the years ended December 31 is detailed below:

	2017		2016		2015
	(dollars in thousands)
Federal funds purchased	$	77	$	41	$	54
Borrowings from FHLB	8,360		7,765		4,684
Securities sold under agreements to repurchase	362		270		280
Total interest on short-term borrowings	$	8,799	$	8,076	$	5,018

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Subordinated Debentures

12 Months Ended

Dec. 31, 2017

Disclosure Subordinated Debentures [Abstract]

Subordinated Debentures

Subordinated Debentures

Subordinated Debentures outstanding at December 31 are as follows:

		2017			2016
	Due	Amount		Rate	Amount		Rate
		(dollars in thousands)
Owed to:
First Commonwealth Capital Trust II	2034	$	30,929	LIBOR + 2.85	$	30,929	LIBOR + 2.85
First Commonwealth Capital Trust III	2034	41,238		LIBOR + 2.85	41,238		LIBOR + 2.85
Total		$	72,167		$	72,167

First Commonwealth currently has two trusts, First Commonwealth Capital Trust II and First Commonwealth Capital Trust III, of which 100% of the common equity is owned by First Commonwealth. The trusts were formed for the purpose of issuing company obligated mandatorily redeemable capital securities to third-party investors and investing the proceeds from the sale of the capital securities solely in junior subordinated debt securities (“subordinated debentures”) of First Commonwealth. The subordinated debentures held by each trust are the sole assets of the trust.

Interest on the debentures issued to First Commonwealth Capital Trust III is paid quarterly at a floating rate of LIBOR + 2.85% which is reset quarterly. Subject to regulatory approval, First Commonwealth may redeem the debentures, in whole or in part, at its option on any interest payment date at a redemption price equal to 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of the redemption. Deferred issuance costs of $630 thousand are being amortized on a straight-line basis over the term of the securities.

Interest on the debentures issued to First Commonwealth Capital Trust II is paid quarterly at a floating rate of LIBOR + 2.85%, which is reset quarterly. Subject to regulatory approval, First Commonwealth may redeem the debentures, in whole or in part, at its option at a redemption price equal to 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of the redemption. Deferred issuance costs of $471 thousand are being amortized on a straight-line basis over the term of the securities.

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Other Long-term Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Other Long-term Debt

Other Long-term Debt

Other long-term debt at December 31 follows:

	2017				2016
	Amount		Weighted Average Contractual Rate		Amount		Weighted Average Contractual Rate
	(dollars in thousands)
Borrowings from FHLB due:
2017					$	586	3.83	%
2018	$	607	3.83	%	609		3.83
2019	631		3.83		633		3.84
2020	656		3.84		658		3.84
2021	681		3.84		684		3.84
2022	708		3.85
Thereafter	4,878		3.80		5,579		3.81
Total	$	8,161			$	8,749

The weighted average contractual rate reflects the rate due to creditors. There are no purchase accounting adjustments related to long-term debt in 2017 or 2016. Therefore, the weighted average effective rate of long-term debt is equal to the weighted average contractual rate of long-term debt.

All of First Commonwealth’s Federal Home Loan Bank stock, along with an interest in mortgage loans and residential mortgage backed securities, has been pledged as collateral with the Federal Home Loan Bank of Pittsburgh.

Capital securities included in total long-term debt on the Consolidated Statements of Financial Condition are excluded from the above, but are described in Note 17, “Subordinated Debentures.”

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Fair Values of Assets and Liabilities

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities

Fair Values of Assets and Liabilities

FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosures for non-financial assets and non-financial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). All non-financial assets are included either as a separate line item on the Consolidated Statements of Financial Condition or in the “Other assets” category of the Consolidated Statements of Financial Condition. Currently, First Commonwealth does not have any non-financial liabilities to disclose.

FASB ASC Topic 825, “Financial Instruments,” permits entities to irrevocably elect to measure select financial instruments and certain other items at fair value. The unrealized gains and losses are required to be included in earnings each reporting period for the items that fair value measurement is elected. First Commonwealth has elected not to measure any existing financial instruments at fair value under FASB ASC Topic 825; however, in the future we may elect to adopt this guidance for select financial instruments.

In accordance with FASB ASC Topic 820, First Commonwealth groups financial assets and financial liabilities measured at fair value in three levels, based on the principal markets in which the assets and liabilities are transacted and the observability of the data points used to determine fair value. These levels are:

• Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange (“NYSE”). Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

• Level 2—Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained for identical or comparable assets or liabilities from alternative pricing sources with reasonable levels of price transparency. Level 2 includes Obligations of U.S. Government securities issued by Agencies and Sponsored Enterprises, Obligations of States and Political Subdivisions, certain corporate securities, FHLB stock, loans held for sale, interest rate derivatives (including interest rate swaps, interest rate caps and risk participation agreements), certain other real estate owned and certain impaired loans.

Level 2 investment securities are valued by a recognized third party pricing service using observable inputs. The model used by the pricing service varies by asset class and incorporates available market, trade and bid information as well as cash flow information when applicable. Because many fixed-income investment securities do not trade on a daily basis, the model uses available information such as benchmark yield curves, benchmarking of like investment securities, sector groupings and matrix pricing. The model will also use processes such as an option-adjusted spread to assess the impact of interest rates and to develop prepayment estimates. Market inputs normally used in the pricing model include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications.

Management validates the market values provided by the third party service by having another recognized pricing service price 100% of the securities on an annual basis and a random sample of securities each quarter, monthly monitoring of variances from prior period pricing and, on a monthly basis, evaluating pricing changes compared to expectations based on changes in the financial markets.

Other Investments are comprised of FHLB stock whose estimated fair value is based on its par value. Additional information on FHLB stock is provided in Note 10, “Impairment of Investment Securities.”

Loans held for sale include residential mortgage loans originated for sale in the secondary mortgage market. The estimated fair value for these loans was determined on the basis of rates obtained in the respective secondary market. This category also includes the Small Business Administration guaranteed portion of small business loans. The estimated fair value of these loans is based on the contract with the third party investor.

Interest rate derivatives are reported at estimated fair value utilizing Level 2 inputs and are included in Other assets and Other liabilities in the Consolidated Statements of Financial Condition. These consist of interest rate swaps where there is no significant deterioration in the counterparties' (loan customers') credit risk since origination of the interest rate swap as well as interest rate caps and risk participation agreements. First Commonwealth values its interest rate swap and cap positions using a yield curve by taking market prices/rates for an appropriate set of instruments. The set of instruments currently used to determine the U.S. Dollar yield curve includes cash LIBOR rates from overnight to one year, Eurodollar futures contracts and swap rates from one year to thirty years. These yield curves determine the valuations of interest rate swaps. Interest rate derivatives are further described in Note 8, “Derivatives.”

For purposes of potential valuation adjustments to our derivative positions, First Commonwealth evaluates the credit risk of its counterparties as well as our own credit risk. Accordingly, we have considered factors such as the likelihood of default, expected loss given default, net exposures and remaining contractual life, among other things, in determining if any estimated fair value adjustments related to credit risk are required. We review our counterparty exposure quarterly, and when necessary, appropriate adjustments are made to reflect the exposure.

We also utilize this approach to estimate our own credit risk on derivative liability positions. In 2017 and 2016, we have not realized any losses due to a counterparty's inability to pay any net uncollateralized position.

Interest rate derivatives also include interest rate forwards entered into to hedge residential mortgage loans held for sale and the related interest-rate lock commitments. This includes forward commitments to sell mortgage loans. The fair value of these derivative financial instruments are based on derivative market data inputs as of the valuation date and the underlying value of mortgage loans for rate lock commitments.

In addition, the Company hedges foreign currency risk through the use of foreign exchange forward contracts. The fair value of foreign exchange forward contracts is based on the differential between the contract price and the market-based forward rate.

The estimated fair value for other real estate owned included in Level 2 is determined by either an independent market based appraisal less estimated costs to sell or an executed sales agreement.

• Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. If the inputs used to provide the valuation are unobservable and/or there is very little, if any, market activity for the security or similar securities, the securities would be considered Level 3 securities. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The assets included in Level 3 are pooled trust preferred collateralized debt obligations, non-marketable equity investments, certain interest rate derivatives, certain impaired loans and certain other real estate.

Our pooled trust preferred collateralized debt obligations are collateralized by the trust preferred securities of individual banks, thrifts and bank holding companies in the United States. There has been little or no active trading in these securities since 2009; therefore, it was more appropriate to determine estimated fair value using a discounted cash flow analysis. Detail on the process for determining the appropriate cash flows for this analysis is provided in Note 10 “Impairment of Investment Securities.” The discount rate applied to the cash flows is determined by evaluating the current market yields for comparable corporate and structured credit products along with an evaluation of the risks associated with the cash flows of the comparable security. Due to the fact that there is no active market for the pooled trust preferred collateralized debt obligations, one key reference point is the market yield for the single issue trust preferred securities issued by banks and thrifts for which there is more activity than for the pooled securities. Adjustments are then made to reflect the credit and structural differences between these two security types.

Management validates the estimated fair value of the pooled trust preferred collateralized debt obligations by monitoring the performance of the underlying collateral, discussing the discount rate, cash flow assumptions and general market trends with the specialized third party and confirming changes in the underlying collateral to the trustee reports. Management’s monitoring of the underlying collateral includes deferrals of interest payments, payment defaults, cures of previously deferred interest payments, any regulatory filings or actions and general news related to the underlying collateral. Management also evaluates fair value changes compared to expectations based on changes in the interest rates used in determining the discount rate and general financial markets.

The estimated fair value of the non-marketable equity investments included in Level 3 is based on par value.

The estimated fair value of limited partnership investments included in Level 3 is based on par value.

For interest rate derivatives included in Level 3, the fair value incorporates credit risk by considering such factors as likelihood of default and expected loss given default based on the credit quality of the underlying counterparties (loan customers).

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)
Pooled Trust Preferred Securities	$	23,646		Discounted Cash Flow	Probability of default	0.00% - 100% (8.98%)
					Prepayment rates	0.00% - 72.02% (4.46%)
					Discount rates	5.00% - 11.50% (a)
Equities	1,670			Par Value	N/A	N/A
Impaired Loans	1,336		(b)	Gas Reserve study	Discount rate	10.00%
					Gas per MMBTU	$2.87 - $3.61 (c)
					Oil per BBL/d	$56.05 - $57.65 (c)
	6,820		(b)	Discounted Cash Flow	Discount Rate	1.90% - 4.68%
Limited Partnership Investments	2,143			Par Value	N/A	N/A

(a) incorporates spread over the risk free rate related primarily to credit quality and illiquidity of securities.

(b) the remainder of impaired loans valued using Level 3 inputs are not included in this disclosure as the values of those loans are based on bankruptcy agreement documentation.

(c) unobservable inputs are defined as follows: MMBTU—one million British thermal units; BBL/d—barrels per day.

The significant unobservable inputs used in the fair value measurement of pooled trust preferred securities are the probability of default, discount rates and prepayment rates. Significant increases in the probability of default or discount rate used would result in a decrease in the estimated fair value of these securities, while decreases in these variables would result in higher fair value measurements. In general, a change in the assumption of probability of default is accompanied by a directionally similar change in the discount rate. In most cases, increases in the prepayment rate assumptions would result in a higher estimated fair value for these securities while decreases would provide for a lower value. The direction of this change is somewhat dependent on the structure of the investment and the amount of the investment tranches senior to our position.

The discount rate is the significant unobservable input used in the fair value measurement of impaired loans. Significant increases in this rate would result in a decrease in the estimated fair value of the loans, while a decrease in this rate would result in a higher fair value measurement. Other unobservable inputs in the fair value measurement of impaired loans relate to gas, oil and natural gas prices. Increases in these prices would result in an increase in the estimated fair value of the loans, while a decrease in these prices would result in a lower fair value measurement.

The tables below present the balances of assets and liabilities measured at fair value on a recurring basis at December 31:

	2017
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—	$	11,338	$	—	$	11,338
Mortgage-Backed Securities—Commercial	—		24,149		—		24,149
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—		625,555		—		625,555
Mortgage-Backed Securities—Commercial	—		—		—		—
Other Government-Sponsored Enterprises	—		1,097		—		1,097
Obligations of States and Political Subdivisions	—		27,410		—		27,410
Corporate Securities	—		16,493		—		16,493
Pooled Trust Preferred Collateralized Debt Obligations	—		—		23,646		23,646
Total Debt Securities	—		706,042		23,646		729,688
Equities	—		—		1,670		1,670
Total Securities Available for Sale	—		706,042		25,316		731,358
Other Investments	—		29,837		—		29,837
Loans Held for Sale	—		14,850		—		14,850
Other Assets (a)	—		1,778		2,143		3,921
Total Assets	$	—	$	752,507	$	27,459	$	779,966
Other Liabilities (a)	$	—	$	3,079	$	—	$	3,079
Total Liabilities	$	—	$	3,079	$	—	$	3,079

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

	2016
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—	$	16,617	$	—	$	16,617
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—		676,853		—		676,853
Mortgage-Backed Securities—Commercial	—		1		—		1
Other Government-Sponsored Enterprises	—		16,631		—		16,631
Obligations of States and Political Subdivisions	—		27,229		—		27,229
Corporate Securities	—		6,319		—		6,319
Pooled Trust Preferred Collateralized Debt Obligations	—		—		33,292		33,292
Total Debt Securities	—		743,650		33,292		776,942
Equities	—		—		1,670		1,670
Total Securities Available for Sale	—		743,650		34,962		778,612
Other Investments	—		36,498		—		36,498
Loans Held for Sale	—		7,052		—		7,052
Other Assets (a)	—		6,089		930		7,019
Total Assets	$	—	$	793,289	$	35,892	$	829,181
Other Liabilities (a)	$	—	$	5,972	$	—	$	5,972
Total Liabilities	$	—	$	5,972	$	—	$	5,972

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

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, 2017:

	Pooled Trust Preferred Collateralized Debt Obligations			Equities		Other Assets		Total
	(dollars in thousands)
Balance, beginning of year	$	33,292		$	1,670	$	930	$	35,892
Total gains or losses
Included in earnings	4,329			—		—		4,329
Included in other comprehensive income	3,725			—		—		3,725
Purchases, issuances, sales, and settlements
Purchases	—			—		1,213		1,213
Issuances	—			—		—		—
Sales	—			—		—		—
Settlements	(17,700		)	—		—		(17,700		)
Transfers from Level 3	—			—		—		—
Transfers into Level 3	—			—		—		—
Balance, end of year	$	23,646		$	1,670	$	2,143	$	27,459

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, 2017.

During the year ended December 31, 2017, 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, 2016:

		Pooled Trust Preferred Collateralized Debt Obligations			Equities			Other Assets		Total
	(dollars in thousands)
Balance, beginning of year		$	35,658		$	2,170		$	—	$	37,828
Total gains or losses
Included in earnings		589			—			—		589
Included in other comprehensive income		850			—			—		850
Purchases, issuances, sales, and settlements
Purchases		—			36			394		430
Issuances		—			—			—		—
Sales		—			—			—		—
Settlements		(3,805		)	—			—		(3,805		)
Transfers from Level 3		—			(536		)	—		(536		)
Transfers into Level 3		—			—			536		536
Balance, end of year		$	33,292		$	1,670		$	930	$	35,892

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, 2016.

During the year ended December 31, 2016, $0.5 million in investments in limited partnerships were moved from other equity securities to other assets constituting the transfers into and out of Level 3. There were no transfers between fair value Levels 1 and 2.

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:

	2017
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Impaired loans	$	—	$	23,249	$	15,245	$	38,494	$	(1,548	)
Other real estate owned	—		3,264		—		3,264		(1,099		)
Total Assets	$	—	$	26,513	$	15,245	$	41,758	$	(2,647	)

	2016
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Impaired loans	$	—	$	18,679	$	19,990	$	38,669	$	(9,032	)
Other real estate owned	—		7,566		—		7,566		(703		)
Total Assets	$	—	$	26,245	$	19,990	$	46,235	$	(9,735	)

Impaired loans over $100 thousand are individually reviewed to determine the amount of each loan considered to be at risk of noncollection. The fair value for impaired loans that are collateral based is determined by reviewing real property appraisals, equipment valuations, accounts receivable listings and other financial information. A discounted cash flow analysis is performed to determine fair value for impaired loans when an observable market price or a current appraisal is not available. For real estate secured loans, First Commonwealth’s loan policy requires updated appraisals be obtained at least every twelve months on all impaired loans with balances of $250 thousand and over. For real estate secured loans with balances under $250 thousand, we rely on broker price opinions. For non-real estate secured assets, the Company normally relies on third party valuations specific to the collateral type.

The fair value for other real estate owned, determined by either an independent market based appraisal less estimated costs to sell or an executed sales agreement, is classified as Level 2. The fair value for other real estate owned determined using an internal valuation is classified as Level 3. Other real estate owned has a current carrying value of $2.8 million as of December 31, 2017 and consisted primarily of commercial real estate properties in Pennsylvania. We review whether events and circumstances subsequent to a transfer to other real estate owned have occurred that indicate the balance of those assets may not be recoverable. If events and circumstances indicate further impairment, we will record a charge to the extent that the carrying value of the assets exceed their fair values, less estimated costs to sell, as determined by valuation techniques appropriate in the circumstances.

Certain other assets and liabilities, including goodwill, core deposit intangibles and customer list intangibles are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. Additional information related to this measurement is provided in Note 14 “Goodwill and Other Amortizing Intangible Assets.” There were no other assets or liabilities measured at fair value on a nonrecurring basis during 2017.

FASB ASC Topic 825-10, “Transition Related to FSP FAS 107-1” and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or nonrecurring basis are as discussed above. The methodologies for other financial assets and financial liabilities are discussed below.

Cash and due from banks and interest bearing bank deposits: The carrying amounts for cash and due from banks and interest-bearing bank deposits approximate the estimated fair values of such assets.

Securities: Fair values for available for sale and held to maturity securities are based on quoted market prices, if available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Pooled trust preferred collateralized debt obligation values are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and are not based on market exchange, dealer or broker traded transactions. These valuations incorporate certain assumptions and projections in determining the fair value assigned to each instrument. The carrying value of other investments, which includes FHLB stock, is considered a reasonable estimate of fair value.

Loans held for sale: The estimated fair value of loans held for sale is based on market bids obtained from potential buyers.

Loans: The fair values of all loans are estimated by discounting the estimated future cash flows using interest rates currently offered for loans with similar terms to borrowers of similar credit quality adjusted for past due and nonperforming loans, which is not an exit price under FASB ASC Topic 820, “Fair Value Measurements and Disclosures.”

Off-balance sheet instruments: Many of First Commonwealth’s off-balance sheet instruments, primarily loan commitments and standby letters of credit, are expected to expire without being drawn upon; therefore, the commitment amounts do not necessarily represent future cash requirements. FASB ASC Topic 460, “Guarantees,” clarified that a guarantor is required to recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. The carrying amount and estimated fair value for standby letters of credit was $0.2 million at both December 31, 2017 and 2016, respectively. See Note 12, “Commitments and Letters of Credit,” for additional information.

Deposit liabilities: The estimated fair value of demand deposits, savings accounts and money market deposits is the amount payable on demand at the reporting date because of the customers' ability to withdraw funds immediately. The carrying value of variable rate time deposit accounts and certificates of deposit approximate the fair value at the report date. Also, fair values of fixed rate time deposits for both periods are estimated by discounting the future cash flows using interest rates currently being offered and a schedule of aggregated expected maturities.

Short-term borrowings: The fair values of borrowings from the FHLB were estimated based on the estimated incremental borrowing rate for similar types of borrowings. The carrying amounts of other short-term borrowings, such as federal funds purchased and securities sold under agreement to repurchase, were used to approximate fair value due to the short-term nature of the borrowings.

Subordinated debt, long-term debt and capital lease obligation: The fair value of long-term debt and subordinated debt is estimated by discounting the future cash flows using First Commonwealth’s estimate of the current market rate for similar types of borrowing arrangements.

The following table presents carrying amounts and estimated fair values of First Commonwealth’s financial instruments at December 31:

	2017
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	98,624	$	98,624	$	98,624	$	—	$	—
Interest-bearing deposits	8,668		8,668		8,668		—		—
Securities available for sale	731,358		731,358		—		706,042		25,316
Securities held to maturity	422,096		418,249		—		418,249		—
Other investments	29,837		29,837		—		29,837		—
Loans held for sale	14,850		14,850		—		14,850		—
Loans	5,407,376		5,443,434		—		23,249		5,420,185
Financial liabilities
Deposits	5,580,705		5,580,812		—		5,580,812		—
Short-term borrowings	707,466		707,263		—		707,263		—
Long-term debt	8,161		8,548		—		8,548		—
Subordinated debt	72,167		65,785		—		—		65,785
Capital lease obligation	7,590		7,590		—		7,590		—

	2016
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	91,033	$	91,033	$	91,033	$	—	$	—
Interest-bearing deposits	24,644		24,644		24,644		—		—
Securities available for sale	778,612		778,612		—		743,650		34,962
Securities held to maturity	372,513		368,618		—		368,618		—
Other investments	36,498		36,498		—		36,498		—
Loans held for sale	7,052		7,052		—		7,052		—
Loans	4,879,347		4,878,254		—		18,679		4,859,575
Financial liabilities
Deposits	4,947,408		4,949,714		—		4,949,714		—
Short-term borrowings	867,943		867,667		—		867,667		—
Long-term debt	8,749		9,169		—		9,169		—
Subordinated debt	72,167		65,656		—		—		65,656

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Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The income tax provision for the years ended December 31 is as follows:

	2017			2016			2015
	(dollars in thousands)
Current tax provision
Federal	$	29,071		$	19,879		$	8,610
State	274			154			68
Total current tax provision	29,345			20,033			8,678
Deferred tax provision (benefit):
Federal	19,237			5,846			12,158
State	(21		)	(240		)	—
Total deferred tax provision	19,216			5,606			12,158
Total tax provision	$	48,561		$	25,639		$	20,836

The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:

	2017					2016					2015
	Amount			% of Pretax Income		Amount			% of Pretax Income		Amount			% of Pretax Income
	(dollars in thousands)
Tax at statutory rate	$	36,304		35	%	$	29,830		35	%	$	24,843		35	%
Increase (decrease) resulting from:
State income tax, net of federal benefit	164			—		(56		)	—		44			—
Income from bank owned life insurance	(1,995		)	(2	)	(1,883		)	(2	)	(1,894		)	(3	)
Tax-exempt interest income, net	(2,709		)	(3	)	(2,434		)	(3	)	(2,232		)	(3	)
Tax credits	(11		)	—		—			—		(61		)	—
Enactment of federal tax reform	16,709			17		—			—		—			—
Other	99			—		182			—		136			—
Total tax provision	$	48,561		47	%	$	25,639		30	%	$	20,836		29	%

The total tax provision for financial reporting differs from the amount computed by applying the statutory federal income tax rate to income before taxes. First Commonwealth ordinarily generates an annual effective tax rate that is less than the statutory rate of 35% due to benefits resulting from tax-exempt interest, income from bank owned life insurance, and tax benefits associated with low-income housing tax credits. The consistent level of tax benefits that reduce First Commonwealth’s tax rate below the 35% statutory rate produced an annual effective tax rate of 30% and 29% for the years ended December 31, 2016 and 2015, respectively. The annual effective tax rate is 47% for the year ended December 31, 2017, which is greater than the 35% statutory rate due to the enactment of federal tax reform.

On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act reduces the corporate federal tax rate from 35% to 21% effective January 1, 2018. As a result we are required to re-measure, through income tax expense, our deferred tax assets and liabilities using the enacted rate at which we expect them to be recovered or settled. The re-measurement of our net deferred tax asset resulted in additional income tax expense of $16.7 million.

Also on December 22, 2017, the U.S. Securities and Exchange Commission (“SEC”) released Staff Accounting Bulletin No. 118 (“SAB 118”) to address any uncertainty or diversity of views in practice in accounting for the income tax effects of the Act in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete this accounting in the reporting period that includes the enactment date. SAB 118 allows for a measurement period not to extend beyond one year from the Act’s enactment date to complete the necessary accounting.

We recorded provisional amounts of deferred income taxes using reasonable estimates in three areas where information necessary to complete the accounting was not available, prepared, or analyzed: 1) Our deferred tax liability for temporary differences between the tax and financial reporting bases of fixed assets principally due to the accelerated depreciation under the Act which allows for full expensing of qualified property purchased and placed in service after September 27, 2017. 2) Our deferred tax asset for temporary differences associated with accrued compensation will be finalized with payments made on or before March 15, 2018 and deducted on the 2017 income tax returns. 3) Our deferred tax assets and liabilities acquired from DCB Financial are awaiting completion of the final short period tax return from outside preparers, which is necessary to confirm the final acquired temporary differences.

In a fourth area, we made no adjustments to deferred tax assets representing future deductions for accrued compensation that may be subject to new limitations under Internal Revenue Code 162(m) which, generally, limits the annual deduction for certain compensation paid to employees to $1 million. There is uncertainty in applying the newly-enacted rules to existing contracts, and we are seeking further clarifications before completing our analysis.

The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below:

	2017			2016
	(dollars in thousands)
Deferred tax assets:
Allowance for credit losses	$	10,223		$	17,616
Postretirement benefits other than pensions	345			611
Alternative minimum tax credit carryforward	201			—
Unrealized loss on securities available for sale	2,091			3,905
Net operating loss carryforward	6,145			—
Writedown of other real estate owned	878			1,266
Deferred compensation	1,514			1,966
Accrued interest on nonaccrual loans	1,017			1,701
Accrued incentives	1,277			2,627
Unfunded loan commitments & other reserves	1,098			1,452
Deferred rent	801			1,285
Other	1,224			1,966
Total deferred tax assets	26,814			34,395
Deferred tax liabilities:
Income from unconsolidated subsidiary	(380		)	(623		)
Depreciation of assets	(587		)	(28		)
Other	(338		)	(429		)
Total deferred tax liabilities	(1,305		)	(1,080		)
Net deferred tax asset	$	25,509		$	33,315

The Company has approximately $29.0 million of federal net operating losses and $0.2 million of AMT carryforwards which are subject to an annual limitation under IRC Section 382. The net operating losses expire in 2030 and the Company expects to utilize the losses prior to expiration.

Management assesses all available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. Based on our evaluation, as of December 31, 2017, management has determined that no valuation allowance is necessary for the deferred tax assets because it is more likely than not that these assets will be realized through future reversals of existing temporary differences and future taxable income.

In accordance with FASB ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes”, the Company has no material unrecognized tax benefits or accrued interest and penalties as of December 31, 2017. We do not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. The Company records interest and penalties on unrecognized tax benefits as a component of noninterest expense.

First Commonwealth is subject to routine audits of our tax returns by the Internal Revenue Service (“IRS”) as well as all states in which we conduct business. During 2015, the IRS completed an examination of our 2013 federal tax return. The examination was closed with no adjustments. Generally, tax years prior to the year ended December 31, 2014 are no longer open to examination by federal and state taxing authorities.

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Retirement Plans

12 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]

Retirement Plans

Retirement Plans

First Commonwealth has a savings plan pursuant to the provisions of section 401(k) of the Internal Revenue code. Effective January 1, 2013, a participating employee can receive a maximum matching contribution of 6% of their compensation. In addition, each participating employee may contribute up to 80% of their eligible compensation to the plan. The 401(k) plan expense was $2.8 million in 2017, $2.5 million in 2016, and $2.7 million in 2015.

First Commonwealth maintains a Non-Qualified Deferred Compensation Plan (“NQDC Plan”) to provide deferred compensation for those employees whose total annual or annualized Plan compensation for a calendar year is at least $110,000. The NQDC Plan provides participants whose maximum retirement contribution is limited by IRS rules to defer additional compensation.

Participants in the NQDC Plan are eligible to defer (on a pre-tax basis) from 1% to 25% of their eligible Plan compensation. There was no NQDC Plan expense in 2017, 2016 and 2015.

Select employees from former acquisitions were covered by postretirement benefit plans which provide medical and life insurance coverage. The measurement date for these plans was December 31.

Postretirement Benefits Other than Pensions from Prior Acquisitions

Net periodic benefit cost of these plans for the years ended December 31, was as follows:

	2017			2016			2015
	(dollars in thousands)
Service cost	$	—		$	—		$	—
Interest cost on projected benefit obligation	49			67			62
Amortization of transition obligation	—			—			—
Gain amortization	(21		)	(7		)	(4		)
Net periodic benefit cost	$	28		$	60		$	58

The following table sets forth the change in the benefit obligation and plan assets as of December 31:

	2017			2016
	(dollars in thousands)
Change in Benefit Obligation
Benefit obligation at beginning of year	$	1,394		$	1,815
Service cost	—			—
Interest cost	49			67
Amendments	—			—
Actuarial gain	(116		)	(337		)
Net benefits paid	(133		)	(151		)
Benefit obligation at end of year	1,194			1,394
Change in Plan Assets
Fair value of plan assets at beginning of year	—			—
Actual return on plan assets	—			—
Employer contributions	133			151
Net benefits paid	(133		)	(151		)
Fair value of plan assets at end of year	—			—
Funded Status at End of Year	1,194			1,394
Unrecognized transition obligation	—			—
Unrecognized net gain	440			345
Amounts recognized in retained earnings	$	1,634		$	1,739

As of December 31, the funded status of the plan is:

	2017		2016
	(dollars in thousands)
Amounts Recognized in the Statement of Financial Condition as Other liabilities	$	1,194	$	1,394

The following table sets forth the amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit costs as of December 31:

	2017			2016			2015
	(dollars in thousands)
Amounts recognized in accumulated other comprehensive income, net of tax:
Net (gain) loss	$	(347	)	$	(225	)	$	(10	)
Transition obligation	—			—			—
Total	$	(347	)	$	(225	)	$	(10	)

Weighted-average assumptions used to determine the benefit obligation as of December 31 are as follows:

	2017		2016		2015
Weighted-average Assumptions
Discount rate	3.37	%	3.74	%	3.88	%
Health care cost trend: Initial	6.00	%	6.00	%	6.25	%
Health care cost trend: Ultimate	4.75	%	4.75	%	4.75	%
Year ultimate reached	2023		2022		2022

Weighted-average assumptions used to determine the net benefit costs as of December 31 are as follows:

	2017		2016		2015
Weighted Average Assumptions for Net Periodic Cost
Discount rate	3.74	%	3.88	%	3.61	%
Health care cost trend: Initial	6.00	%	6.25	%	6.50	%
Health care cost trend: Ultimate	4.75	%	4.75	%	4.75	%
Year ultimate reached	2022		2022		2022
Corridor	10.00	%	10.00	%	10.00	%
Recognition period for gains and losses	11.0		11.0		11.0

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”) introduced a prescription drug benefit under Medicare Part D and a federal subsidy to sponsors of retiree health care benefit plans that provide a prescription drug benefit that is at least actuarially equivalent to Medicare Part D. The postretirement plans of First Commonwealth are provided through insurance coverage; therefore, First Commonwealth will not receive a direct federal subsidy. The preceding measures of the accumulated postretirement benefit cost assume that First Commonwealth will not receive the subsidy due to the relatively small number of retirees.

The health care cost trend rate assumption can have a significant impact on the amounts reported for this plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

	One-Percentage- Point Increase		One-Percentage- Point Decrease
	(dollars in thousands)
Effect on postretirement benefit obligation	$	29	$	(27	)
Effect on total of service and interest cost components	2		(2		)

As of December 31, 2017, the projected benefit payments for the next ten years are as follows:

	Projected Benefit         Payments
	(dollars in thousands)
2018	$	152
2019	128
2020	122
2021	115
2022	107
2023 - 2027	422

The projected payments were calculated using the same assumptions as those used to calculate the benefit obligations included in this note.

The estimated costs that will be amortized from accumulated other comprehensive income into net periodic cost for 2018 are as follows (dollars in thousands):

	Postretirement Benefits
	(dollars in thousands)
Net gain	$	(35	)
Transition obligation	—
Total	$	(35	)

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Incentive Compensation Plan

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Incentive Compensation Plan

Incentive Compensation Plan

On January 20, 2009, the Board of Directors of the Company adopted, with shareholder approval, the First Commonwealth Financial Corporation Incentive Compensation Plan. This plan allows for shares of common stock to be issued to employees, directors, and consultants of the Company and its subsidiaries as an incentive to aid in the financial success of the Company. The shares can be issued as options, stock appreciation rights, performance share or unit awards, dividend or dividend equivalent rights, stock awards, restricted stock awards, or other annual incentive awards. Up to 5,000,000 shares of stock can be awarded under this plan, of which 3,365,572 shares were still eligible for awards as of December 31, 2017.

Restricted Stock

The following provides detail on the restricted stock awards which were issued and outstanding in 2017, 2016 and 2015 in order to retain and attract key employees. The grant date fair value of the restricted stock awards is equal to the price of First Commonwealth’s common stock on grant date.

Grant Date	Shares issued	Grant Price		Vesting Date	Number of Equal Vesting Periods
March 24, 2017	5,000	$	12.99	March 24, 2020	1
March 24, 2017	7,000	12.99		August 31, 2017	1
March 24, 2017	7,000	12.99		March 24, 2020	1
March 24, 2017	7,000	12.99		August 31, 2017	1
December 19, 2016	15,000	13.96		December 19, 2019	3
September 30, 2016	10,000	10.09		September 30, 2019	1
September 19, 2016	33,000	10.02		September 19, 2019	3
June 7, 2016	10,000	9.34		June 7, 2019	1
March 1, 2016	10,000	8.84		March 1, 2019	1
March 1, 2016	5,000	8.84		March 1, 2019	1
March 1, 2016	20,000	8.84		August 31, 2017	1
February 18, 2016	18,348	8.43		December 31, 2016	1
June 26, 2015	1,000	9.84		June 26, 2018	1
February 20, 2015	10,000	8.45		August 31, 2017	1
February 20, 2015	34,200	8.45		December 31, 2015	1
February 5, 2015	50,000	8.55		February 5, 2018	1
January 29, 2015	20,170	7.93		December 31, 2015	1
January 15, 2015	20,000	8.38		January 15, 2017	1
November 17, 2014	3,500	9.26		November 17, 2017	1
April 8, 2014	27,500	8.89		April 8, 2017	3
March 24, 2014	46,000	9.18		March 24, 2017	1
March 4, 2014	5,000	8.75		March 4, 2017	1
January 1, 2014	12,626	8.82		December 31, 2014	1
August 16, 2013	3,000	7.57		August 16, 2016	1
May 31, 2013	45,000	7.21		May 31, 2016	3
March 1, 2013	10,000	7.35		March 1, 2016	1
February 24, 2012	34,000	5.96		December 31, 2014	1
February 24, 2012	90,000	5.96		February 24, 2015	1
January 1, 2012	100,000	5.26		January 1, 2016	4
November 21, 2011	10,000	4.41		November 21, 2014	1
April 1, 2011	25,000	6.82		April 1, 2016	1

Compensation expense related to restricted stock was $3.8 million, $3.2 million and $1.4 million in 2017, 2016 and 2015, respectively. As of December 31, 2017, there was $3.0 million of unrecognized compensation cost related to unvested restricted stock awards granted.

A summary of the status of First Commonwealth’s unvested service-based restricted stock awards as of December 31 and changes for the years ended on those dates is presented below:

	2017				2016				2015
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Outstanding, beginning of the year	247,668		$	9.34	231,834		$	8.01	265,000		$	7.08
Granted	26,000		12.99		121,348		9.88		135,370		8.41
Vested	(151,668	)	9.49		(105,514	)	7.04		(168,536	)	6.87
Forfeited	(5,000	)	8.55		—		—		—		—
Outstanding, end of the year	117,000		9.99		247,668		9.34		231,834		8.01

The following provides detail on restricted stock awards estimated to be granted on a performance award basis during 2017, 2016 and 2015. These plans were previously approved by the Board of Directors.

Grant Date	Target Share Award	Performance Period (years)	Award if threshold met		Award if targets are met		Award if superior met		Award if threshold not achieved		Vesting After Performance Period (years)	Final vesting
February 24, 2012	68,000	3	40	%	100	%	200	%	—	%	1	December 31, 2015
January 28, 2013	128,611	3	40	%	100	%	200	%	—	%	1	December 31, 2016
January 27, 2014	125,000	3	40	%	100	%	200	%	—	%	0	December 31, 2016
January 26, 2015	125,000	3	40	%	100	%	200	%	—	%	0	December 31, 2017
December 30, 2015	60,000	5									0	December 31, 2020
February 18, 2016	160,650	3	40	%	100	%	200	%	—	%	0	December 31, 2018
February 23, 2017	93,500	3	40	%	100	%	200	%	—	%	0	December 31, 2019

The following table summarizes the estimated unvested target share awards for the Plans as of December 31:

	2017		2016		2015
Outstanding, beginning of the year	426,596		320,705		284,000
Granted	276,442		176,936		185,000
Issued	(171,637	)	(18,348	)	(34,200	)
Forfeited	(6,356	)	(52,697	)	(114,095	)
Outstanding, end of the year	525,045		426,596		320,705

The unvested target awards for the Plans have an estimated fair value of $14.32 per share for the January 26, 2015 and February 18, 2016 grants based on the closing price of Company stock as of December 31, 2017. The December 30, 2015 grant has a fair value of $9.18 based the closing stock price when the shares were granted. Based on a Monte Carlo simulation, the February 23, 2017 grant has a fair value of $13.29 per share for 75% of the grant and$15.09 per share for 25% of the grant.

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Contingent Liabilities

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Contingent Liabilities

Contingent Liabilities

Legal proceedings

First Commonwealth and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. As of December 31, 2017, management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against First Commonwealth or its subsidiaries will be material to First Commonwealth’s consolidated financial position. On at least a quarterly basis, First Commonwealth assesses its liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that First Commonwealth will incur losses and the amounts of the losses can be reasonably estimated, First Commonwealth records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability (if any), is between $0 and $7 million. Although First Commonwealth does not believe that the outcome of pending litigation will be material to First Commonwealth’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations and cash flows for a particular reporting period in the future.

First Commonwealth Financial Corporation and First Commonwealth Bank were named defendants in an action commenced August 27, 2015 by eight named plaintiffs that is pending in the Court of Common Pleas of Jefferson County, Pennsylvania.  The plaintiffs allege that the Bank repossessed motor vehicles, sold the vehicles and sought to collect deficiency balances in a manner that did not comply with the notice requirements of the Pennsylvania Uniform Commercial Code (UCC), charged inappropriate costs and fees, including storage costs for dates that a repossessed vehicle was not in storage, and wrongly filed forms with the Department of Motor Vehicles asserting that the Bank had complied with applicable laws relating to the repossession of the vehicles. The plaintiffs seek to pursue the action as a class action on behalf of the named plaintiffs and other similarly situated plaintiffs who had their automobiles repossessed and seek to recover damages under the UCC and the Pennsylvania Fair Credit Extension Uniformity Act. First Commonwealth and the Bank contest the plaintiffs’ allegations and intend to oppose class certification.  The Bank has also asserted counterclaims for breach of contract, set-off and recoupment against the plaintiffs, individually, and as representatives of the putative class. The Bank and counsel for the plaintiffs reached an agreement-in-principle to settle the litigation during the second quarter of 2016. The parties are negotiating the terms of a definitive settlement agreement which would be subject to court approval and other customary conditions. The estimated cost of the settlement to the Bank was recorded as a liability in the second quarter of 2016. As set forth in the preceding paragraph, all current litigation matters, including this action, are believed to be within the range of reasonably possible losses set forth in the preceding paragraph.

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Related Party Transactions

12 Months Ended

Dec. 31, 2017

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Some of First Commonwealth’s directors, executive officers, principal shareholders and their related interests had transactions with the subsidiary bank in the ordinary course of business. All deposit and loan transactions were made on substantially the same terms, such as collateral and interest rates, as those prevailing at the time for comparable transactions. In the opinion of management, these transactions do not involve more than the normal risk of collectability nor do they present other unfavorable features. It is anticipated that similar transactions will be entered into in the future.

The following is an analysis of loans to related parties (dollars in thousands):

December 31, 2016	$	1,164
Advances	740
Repayments	(1,127		)
Other	4,871
December 31, 2017	$	5,648

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Regulatory Restrictions and Capital Adequacy

12 Months Ended

Dec. 31, 2017

Regulatory Capital Requirements [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.

First Commonwealth maintains capital to absorb unexpected losses. In order to provide assurance that our capital levels are adequate for our risk exposure we test our capital position under several stress scenarios on an annual basis. This analysis is subject to Board of Director review and approval. Our most recent capital stress test was completed in September 2017.

Effective January 1, 2015, the Company became subject to new regulatory risk-based capital rules adopted by the federal banking agencies implementing Basel III. The most significant changes include higher minimum capital requirements, as the minimum Tier I capital ratio increased from 4.0% to 6.0%, and a new common equity Tier I capital ratio was established with a minimum level of 4.5%. Additionally, the new rules improve the quality of capital by providing stricter eligibility criteria for regulatory capital instruments and provide for a phase-in, beginning January 1, 2016, of a capital conservation buffer of 2.5% of risk-weighted assets. This buffer provides a requirement to hold common equity Tier 1 capital above the minimum risk-based capital requirements, resulting in an effective common equity Tier I risk-weighted asset minimum ratio of 7% on a fully phased-in basis.

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.

As of December 31, 2017 and 2016, First Commonwealth and First Commonwealth Bank met all capital adequacy requirements to which they are subject and was considered well-capitalized under the regulatory rules, all on a fully phased-in basis. 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 forth in the table below:

	Actual				Minimum Capital Required - Basel III Phase-In Schedule				Minimum Capital Required - Basel III Fully Phased-In				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(dollars in thousands)
As of December 31, 2017
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	745,473	12.34	%	$	558,728	9.25	%	$	634,232	10.50	%	$	604,030	10.00	%
First Commonwealth Bank	712,341		11.83		556,872		9.25		632,124		10.50		602,023		10.00
Tier I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	691,993	11.46	%	$	437,922	7.25	%	$	513,426	8.50	%	$	483,224	8.00	%
First Commonwealth Bank	658,861		10.94		436,467		7.25		511,720		8.50		481,619		8.00
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	691,993	9.74	%	$	284,100	4.00	%	$	284,100	4.00	%	$	355,125	5.00	%
First Commonwealth Bank	658,861		9.30		283,344		4.00		283,344		4.00		354,180		5.00
Common Equity Tier I to Risk Weighted Assets
First Commonwealth Financial Corporation	$	623,252	10.32	%	$	347,317	5.75	%	$	422,821	7.00	%	$	392,620	6.50	%
First Commonwealth Bank	658,861		10.94		346,163		5.75		421,416		7.00		391,315		6.50

	Actual				Minimum Capital Required - Basel III Phase-In Schedule				Minimum Capital Required - Basel III Fully Phased-In				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(dollars in thousands)
As of December 31, 2016
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	687,554	12.28	%	$	483,034	8.63	%	$	588,042	10.50	%	$	560,040	10.00	%
First Commonwealth Bank	617,076		11.06		481,248		8.63		585,867		10.50		557,969		10.00
Tier I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	633,262	11.31	%	$	371,026	6.63	%	$	476,034	8.50	%	$	448,032	8.00	%
First Commonwealth Bank	562,784		10.09		369,654		6.63		474,273		8.50		446,375		8.00
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	633,262	9.83	%	$	257,776	4.00	%	$	257,776	4.00	%	$	322,220	5.00	%
First Commonwealth Bank	562,784		8.79		256,214		4.00		256,214		4.00		320,268		5.00
Common Equity Tier I to Risk Weighted Assets
First Commonwealth Financial Corporation	$	563,262	10.06	%	$	287,020	5.13	%	$	392,028	7.00	%	$	364,026	6.50	%
First Commonwealth Bank	562,784		10.09		285,959		5.13		390,578		7.00		362,680		6.50

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Capital

12 Months Ended

Dec. 31, 2017

Disclosure Capital Additional Information [Abstract]

Capital

Capital

In 2012, First Commonwealth announced a $50.0 million common stock repurchase program. Additional share repurchase programs were authorized for up to $25.0 million in shares of the Company’s common stock for each year from 2013 to 2016. The repurchase program was suspended in July 2016 as a result of the acquisition of thirteen branches in northern Ohio which management believes represents a better use of capital for shareholder. Repurchases under all programs resulted in a total of 16,665,735 shares repurchased at an average price of $7.55 per share.

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Condensed Financial Information of First Commonwealth Financial Corporation (parent company only)

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of First Commonwealth Financial Corporation (parent company only)

Condensed Financial Information of First Commonwealth Financial Corporation (parent company only)

Statements of Financial Condition	December 31,
	2017		2016
	(dollars in thousands)
Assets
Cash	$	16,432	$	30,387
Loans	17		19
Investment in subsidiaries	927,765		770,214
Investment in unconsolidated subsidiary trusts	2,186		2,185
Investment in jointly-owned company	9,191		9,042
Premises and equipment, net	3,715		3,793
Receivable from subsidiaries	—		33
Dividends receivable from subsidiaries	—		4,662
Other assets	4,996		2,453
Total assets	$	964,302	$	822,788
Liabilities and Shareholders’ Equity
Accrued expenses and other liabilities	$	4,008	$	692
Subordinated debentures payable	72,167		72,167
Shareholders’ equity	888,127		749,929
Total liabilities and shareholders’ equity	$	964,302	$	822,788

Statements of Income	For the years ended December 31,
	2017			2016			2015
	(dollars in thousands)
Interest and dividends	$	1		$	1		$	1
Dividends from subsidiaries	52,586			55,510			49,917
Interest expense	(3,000		)	(2,635		)	(2,357		)
Other income	17			83			232
Operating expense	(4,767		)	(4,700		)	(4,989		)
Income (loss) before taxes and equity in undistributed (loss) earnings of subsidiaries	44,837			48,259			42,804
Applicable income tax benefits	2,557			2,515			2,528
Income before equity in undistributed (loss) earnings of subsidiaries	47,394			50,774			45,332
Equity in undistributed earnings (loss) of subsidiaries	7,771			8,816			4,811
Net income	$	55,165		$	59,590		$	50,143

	For the years ended December 31,
Statements of Cash Flow	2017			2016			2015
	(dollars in thousands)
Operating Activities
Net income	$	55,165		$	59,590		$	50,143
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	322			355			493
Net (gains) losses on sales of assets	(3		)	—			240
(Increase) decrease in prepaid income taxes	(550		)	7,380			(6,993		)
Undistributed equity in subsidiaries	(7,771		)	(8,816		)	(4,811		)
Other net	8,767			7,759			10,753
Net cash provided by operating activities	55,930			66,268			49,825
Investing Activities
Net change in loans	2			3			2
Purchases of premises and equipment	(207		)	—			54
Proceeds from sale of other assets	3			(332		)	—
Proceeds from dissolution of subsidiary	0			27,017			—
Acquisition of affiliate, net of cash received	(250		)	—			—
Investment in subsidiaries	(37,690		)	(47,017		)	—
Net cash (used in) provided by investing activities	(38,142		)	(20,329		)	56
Financing Activities
Dividends paid	(30,513		)	(24,907		)	(25,089		)
Proceeds from reissuance of treasury stock	228			216			192
Purchase of treasury stock	(1,458		)	(864		)	(25,383		)
Net cash used in financing activities	(31,743		)	(25,555		)	(50,280		)
Net (decrease) increase in cash	(13,955		)	20,384			(399		)
Cash at beginning of year	30,387			10,003			10,402
Cash at end of year	$	16,432		$	30,387		$	10,003

Cash dividends declared per common share were $0.32 for 2017 and $0.28 in 2016 and 2015.

First Commonwealth Financial Corporation has an unsecured $15.0 million line of credit with another financial institution. As of December 31, 2017, there are no amounts outstanding on this line and we are in compliance with all debt covenants related

to the line of credit.

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Subsequent Event (Notes)

12 Months Ended

Dec. 31, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Event

On January 10, 2018, the Company announced the acquisition of Garfield Acquisition Corp., the parent company of Cincinnati, Ohio based Foundation Bank, in a cash and stock transaction valued at approximately $58 million. The acquisition of Foundation Bank includes approximately $215 million in assets, $182 million in loans, $148 million in deposits and five full-service banking offices. This transaction is subject to regulatory approval.

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Statement of Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Business Combinations Policy [Policy Text Block]

Business Combinations

Business combinations are accounted for by using the acquisition method of accounting. Under the acquisition method, identifiable assets acquired and liabilities assumed at the acquisition date are measured at their fair values as of that date, and are recognized separately from goodwill. The difference between the purchase price and the fair value of the net assets acquired is recorded as goodwill. Results of operations of the acquired entities are included in the consolidated statement of income from the date of acquisition. Acquisition costs are expensed when incurred.

General

General

The following summary of accounting and reporting policies is presented to aid the reader in obtaining a better understanding of the consolidated financial statements of First Commonwealth Financial Corporation and its subsidiaries (“First Commonwealth”) contained in this report.

The financial information is presented in accordance with generally accepted accounting principles and general practice for financial institutions in the United States of America. In preparing financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. In addition, these estimates and assumptions affect revenues and expenses in the financial statements and as such, actual results could differ from those estimates.

Through its subsidiaries, which include a commercial bank and an insurance agency, First Commonwealth provides a full range of loan, deposit, trust, insurance and personal financial planning services primarily to individuals and small to middle market businesses in fifteen counties in central and western Pennsylvania as well as in central and northern Ohio. First Commonwealth has determined that it has one business segment.

First Commonwealth is subject to regulations of certain state and federal agencies. These regulatory agencies periodically examine First Commonwealth for adherence to laws and regulations.

Basis of Presentation

Basis of Presentation

The accompanying Consolidated Financial Statements include the accounts of First Commonwealth previously defined above. All material intercompany transactions have been eliminated in consolidation.

Equity investments of less than a majority but at least 20% ownership are accounted for by the equity method and classified as “Other assets.” Earnings on these investments are reflected in “Other income” on the Consolidated Statements of Income, as appropriate, in the period earned.

Securities

Securities

Debt securities that First Commonwealth has the positive intent and ability to hold to maturity are classified as securities held to maturity and are reported at amortized cost adjusted for amortization of premium and accretion of discount on a level yield basis. Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are to be classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as securities available for sale and are reported at fair value, with unrealized gains and losses that are not related to impairment excluded from earnings and reported as a component of other comprehensive income, which is included in shareholders’ equity, net of deferred taxes.

First Commonwealth has securities classified as held to maturity and available for sale and does not engage in trading activities. 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 the equity securities.

First Commonwealth conducts a comprehensive review of the investment portfolio on a quarterly basis to determine whether other-than-temporary impairment has occurred. Issuer-specific securities whose market values have fallen below their book values are initially selected for more in-depth analysis based on the percentage decline in value and duration of the decline. Issuer-specific securities include obligations of U.S. Government agencies and sponsored enterprises, single issue trust preferred securities, corporate debentures and obligations of states and political subdivisions. Further analysis of these securities includes a review of research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, impact of interest rate changes and any other relevant information pertaining to the affected security. Pooled trust preferred collateralized debt obligations are measured by evaluating all relevant credit and structural aspects, determining appropriate performance assumptions and performing a discounted cash flow analysis. This evaluation includes detailed credit, performance and structural evaluations for each piece of collateral. Other factors in the pooled trust preferred collateralized debt obligations valuation include terms of the structure, the cash flow waterfall (for both interest and principal), the over collateralization and interest coverage tests and events of default/liquidation. Based on this review, a determination is made on a case by case basis as to a potential impairment. Declines in the fair value of individual securities below their cost that are not expected to be recovered will result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as impairment losses.

Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]

Mortgage Loans Held for Sale

Certain residential mortgage loans are originated for sale in the secondary mortgage loan market with the majority sold with servicing rights released. These loans are classified as loans held for sale and are carried at the lower of cost or estimated market value on an aggregate basis. Market value is determined on the basis of rates obtained in the respective secondary market for the type of loan held for sale. Loans are generally sold at a premium or discount from the carrying amount of the loan. Such premium or discount is recognized at the date of sale. Gain or loss on the sale of loans is recorded in non-interest income at the time consideration is received and all other criteria for sales treatment have been met.

Loans

Loans

Loans are carried at the principal amount outstanding. Interest is accrued as earned. Loans held for sale are carried at the lower of cost or fair value determined on an individual basis.

First Commonwealth considers a loan to be past due and still accruing interest when payment of interest or principal is contractually past due but the loan is both well secured and in the process of collection. For installment, mortgage, term and other loans with amortizing payments that are scheduled monthly, 90 days past due is reached when four monthly payments are due and unpaid. For demand, time and other multi-payment obligations with payments scheduled other than monthly, delinquency status is calculated using number of days instead of number of payments. Revolving credit loans, including personal credit lines and home equity lines, are considered to be 90 days past due when the borrower has not made the minimum payment for four monthly cycles.

A loan is placed in nonaccrual status when, based on current information and events, it is probable that First Commonwealth will be unable to fully collect principal or interest due according to the contractual terms of the loan. A loan is also placed in nonaccrual status when, based on regulatory definitions, the loan is maintained on a “cash basis” due to the weakened financial condition of the borrower. When a determination is made to place a loan in nonaccrual status, all accrued and unpaid interest is reversed. Nonaccrual loans are restored to accrual status when, based on a sustained period of repayment by the borrower in accordance with the contractual terms of the loan, First Commonwealth expects repayment of the remaining contractual principal and interest or when the loan otherwise becomes well-secured and in the process of collection.

First Commonwealth considers a loan to be a troubled debt restructured loan when the loan terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources.

A loan is considered to be impaired when, based on current information and events, it is probable that First Commonwealth will be unable to collect principal or interest that is due in accordance with contractual terms of the loan. Impaired loans include nonaccrual loans and troubled debt restructured loans. Loan impairment is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent.

For loans other than those that First Commonwealth expects repayment through liquidation of the collateral, when the remaining recorded investment in the impaired loan is less than or equal to the present value of the expected cash flows, income is applied as a reduction to loan principal rather than interest income.

Loans deemed uncollectible are charged off through the allowance for credit losses. Factors considered in assessing ultimate collectability include past due status, financial condition of the borrower, collateral values and debt covenants including secondary sources of repayment by guarantors. Payments received on previously charged off loans are recorded as recoveries in the allowance for credit losses.

Acquired loans are recorded at estimated fair value on the date of acquisition with no carryover of the related allowance for credit losses. The fair value of acquired loans is determined by estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The estimated fair value considers factors such as loan term, internal risk rating, delinquency status, prepayment rates, estimated value of the underlying collateral and the current interest rate environment.

Loan Fees

Loan Fees

Loan origination and commitment fees, net of associated direct costs, are deferred and the net amount is amortized as an adjustment to the related loan yield on the interest method, generally over the contractual life of the related loans or commitments.

Other Real Estate Owned

Other Real Estate Owned

Real estate, other than bank premises, is recorded at fair value less estimated selling costs at the time of acquisition.   After that time, other real estate is carried at the lower of cost or fair value less estimated costs to sell. Fair value is determined based on an independent appraisal. Expenses related to holding the property and rental income earned on the property are generally reflected in earnings in the current period. Depreciation is not recorded on the other real estate owned properties.

Allowance for Credit Losses

Allowance for Credit Losses

First Commonwealth maintains an allowance for credit losses at a level deemed sufficient to absorb losses that are inherent in the loan portfolio. First Commonwealth’s management determines and reviews with the Board of Directors the adequacy of the allowance on a quarterly basis to ensure that the provision for credit losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. First Commonwealth’s methodology for assessing the appropriateness of the allowance for credit losses consists of several key elements. These elements include an assessment of individual problem loans, delinquency and loss experience trends and other relevant factors, all of which may be susceptible to significant changes.

The major loan classifications used in the allowance for credit losses calculation include pass, other assets especially mentioned (“OAEM”), substandard and doubtful. Additional information related to these credit quality categories is provided in Note 11, "Loans and Allowance for Credit Losses."

First Commonwealth consistently applies the following comprehensive methodology and procedure for determining the allowance for credit losses.

All impaired credits in excess of $100 thousand are individually reviewed quarterly. A specific reserve is established for impaired loans in an amount equal to the total amount of probable unconfirmed losses for the impaired loans that are reviewed. Based on this reserve as a percentage of reviewed loan balances, a reserve is also established for the impaired loan balances that are not individually reviewed.

The allowance calculation uses net historical charge-off trends to estimate probable unconfirmed losses for each loan category. A multiplier known as the emergence factor is applied to the historical loss rates for non-criticized loans. The emergence factor is calculated by loan category and represents the average time period from when a loss is incurred until the bank experiences a charge-off against the loan. Before applying the adjusted historical loss experience percentages, loan balances are reduced by the portion of the loan balances which are subject to guarantee by a government agency.

An additional component of the allowance is determined by management based on a qualitative analysis of certain factors related to portfolio risks and economic conditions. Factors considered by management include employment trends, macroeconomic trends, commercial real estate trends, lending practices, ability and experience of the credit staff, the overall lending environment and external factors such as the regulatory environment and competition. Portfolio risks include unusual changes or recent trends in specific portfolios such as unexpected changes in the trends or levels of delinquency. No matter how detailed an analysis of potential credit losses is performed, these estimates are inherently imprecise. Management must make estimates using assumptions and information that is often subjective and changes rapidly.

Loans acquired with evidence of credit deterioration were evaluated and not considered to be significant. The premium or discount estimated through the loan fair value calculation is recognized into interest income on a level yield or straight-line basis over the remaining contractual life of the loans. Additional credit deterioration on acquired loans, in excess of the original credit discount embedded in the fair value determination on the date of acquisition, will be recognized in the allowance for credit losses through the provision for loan losses.

Allowance for Off-Balance Sheet Credit Exposures

Allowance for Off-Balance Sheet Credit Exposures

First Commonwealth maintains an allowance for off-balance sheet credit exposure at a level deemed sufficient to absorb losses that are inherent to off-balance sheet credit risk. Management determines the adequacy of the allowance on a quarterly basis, charging the provision against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. The Company’s methodology for assessing the appropriateness of the allowance for off-balance sheet credit exposure consists of analysis of historical usage trends as well as loss history and probability of default rates related to the off-balance sheet category. The calculation begins with historical usage trends related to lines of credit as well as letters of credit and then utilizes those figures to determine the probable usage of available lines. These values are then adjusted by a determined probability of default as well as a loss given default. This amount is adjusted quarterly and reported as part of other operating expenses on the Consolidated Statements of Income.

Bank Owned Life Insurance

Bank Owned Life Insurance

First Commonwealth and the banks that First Commonwealth has acquired have purchased insurance on the lives of certain groups of employees. The policies accumulate asset values to meet future liabilities, including the payment of employee benefits such as health care. Increases in the cash surrender value are recorded as non-interest income in the Consolidated Statements of Income. Under some of these policies, the beneficiaries receive a portion of the death benefit.

Premises and Equipment

Premises and Equipment

Premises and equipment are carried at cost less accumulated depreciation on First Commonwealth’s Consolidated Statements of Financial Condition. Depreciation is computed on the straight-line and accelerated methods over the estimated useful life of the asset. A straight-line depreciation method was used for substantially all furniture and equipment. The straight-line depreciation method was used for buildings and improvements. Charges for maintenance and repairs are expensed as incurred. Leasehold improvements are expensed over the term of the lease or the estimated useful life of the improvement, whichever is shorter.

Software costs are amortized on a straight-line basis over a period not to exceed seven years

Goodwill

Goodwill

Intangible assets resulting from acquisitions under the purchase method of accounting consist of goodwill and other intangible assets (see “Other Intangible Assets” section below). Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. First Commonwealth reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if our fair value has fallen below carrying value.

Other Intangible Assets

Other Intangible Assets

Other intangible assets consist of core deposits and customer lists obtained through acquisitions. Core deposit intangibles are amortized over their estimated lives using the present value of the benefit of the core deposits and straight-line methods of amortization. Customer list intangibles are amortized over the expected lives using expected cash flows based on retention of the customer base. These intangibles are evaluated for impairment on an annual basis and when events or changes in circumstances indicate that the carrying amount may not be recoverable.

Accounting for the Impairment of Long-Lived Assets

Accounting for the Impairment of Long-Lived Assets

First Commonwealth reviews long-lived assets, such as premises and equipment and intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These changes in circumstances may include a significant decrease in the market value of an asset or the extent or manner in which an asset is used. If there is an indication that the carrying amount of an asset may not be recoverable, future undiscounted cash flows expected to result from the use of the asset are estimated. If the sum of the expected cash flows is less than the carrying value of the asset, a loss is recognized for the difference between the carrying value and fair value of the asset. Long-lived assets classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. Depreciation or amortization is discontinued on long-lived assets classified as held for sale.

Income Taxes

Income Taxes

First Commonwealth records taxes in accordance with the asset and liability method of FASB ASC Topic 740, “Income Taxes,” whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases given the provisions of the enacted tax laws. Deferred tax assets are reduced, if necessary, by the amount of such benefits that are more likely than not expected to be realized based upon available evidence. In accordance with FASB ASC Topic 740, interest or penalties incurred for taxes will be recorded as a component of noninterest expense.

Comprehensive Income Disclosures

Comprehensive Income Disclosures

“Other Comprehensive Income” (comprehensive income, excluding net income) includes the after-tax effect of changes in unrealized holding gains and losses on available-for-sale securities, changes in the funded status of defined benefit postretirement plans and changes in the fair value of the effective portion of cash flow hedges. Comprehensive income is reported in the accompanying Consolidated Statements of Comprehensive Income, net of tax.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and interest-bearing bank deposits. Generally, federal funds are sold for one-day periods.

Employee Stock Ownership Plan

Derivatives and Hedging Activities

Derivatives and Hedging Activities

First Commonwealth accounts for derivative instruments and hedging activities in accordance with FASB ASC Topic 815, “Derivatives and Hedging.” All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities, and appropriate documentation is maintained to support the final determination. First Commonwealth recognizes all derivatives as either assets or liabilities on the Consolidated Statements of Financial Condition and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in OCI. When the cash flows associated with the hedged item are realized, the gain or loss included in OCI is recognized in the Consolidated Statement of Income.

When First Commonwealth purchases a portion of a commercial loan that has an existing interest rate swap, it enters a Risk Participation Agreement with the counterparty and assumes the credit risk of the loan customer related to the swap. Any fee paid to First Commonwealth as a result of the risk participation agreement is offset by credit risk of the counterparties and is recognized in the income statement. Credit risk on the risk participation agreements is determined after considering the risk rating, probability of default and loss given default of the counterparties.

Management periodically reviews contracts from various functional areas of First Commonwealth to identify potential derivatives embedded within selected contracts. As of December 31, 2017, First Commonwealth has interest derivative positions that are not designated as hedging instruments. See Note 8, “Derivatives,” for a description of these instruments.

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period.

Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For all periods presented, the dilutive effect on average shares outstanding is the result of compensatory stock options outstanding and unvested restricted stock grants.

Fair Value Measurements

Fair Value Measurements

In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” First Commonwealth groups financial assets and financial liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

• Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

• Level 2—Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained for identical or comparable assets or liabilities from alternative pricing sources with reasonable levels of price transparency. Level 2 securities include U.S. Government securities issued by Agencies and Sponsored Enterprises, Obligations of States and Political Subdivisions, certain corporate securities, FHLB stock, loans held for sale, interest rate derivatives that include interest rate swaps, risk participation agreements and foreign currency contracts, certain other real estate owned and certain impaired loans.

• Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. If the inputs used to provide the evaluation are unobservable and/or there is very little, if any, market activity for the security or similar securities, the securities would be considered Level 3 securities. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The assets included in Level 3 are pooled trust preferred collateralized debt obligations, nonmarketable equity investments, certain other real estate owned and certain impaired loans.

In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon pricing models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. See Note 19 “Fair Values of Assets and Liabilities” for additional information.

New Accounting Pronouncements, Policy

New Accounting Pronouncements

In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606)”. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", with an original effective date for annual reporting periods beginning after December 15, 2016. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 deferred the effective date of ASU 2014-09 to annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company adopted this ASU on January 1, 2018 using the modified retrospective method. A significant component of the Company’s revenues, net interest income on financial assets and liabilities, is excluded from the scope of the amended guidance. The Company has completed its overall assessment of additional revenue streams, including trust and asset management fees, brokerage and annuity sales, deposit related fees, interchange fees, and merchant income and has concluded that the Company’s revenue recognition for these revenue streams will not change significantly. Management’s evaluation of the impact of the new standard on revenue generated from insurance commissions and fees, as well as all related processes and procedures, will be completed before the end of the first quarter of 2018. Until the evaluation of the insurance commissions and fees is completed, the Company cannot conclude whether the new standard has a material impact on the insurance commission revenue stream or the Company’s financial statements.

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Entities have the option to use certain relief; full retrospective application is prohibited. We are currently evaluating the potential impact of ASU 2016-02 on our financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which amends the guidance for recognizing credit losses from an “incurred loss” methodology that delays recognition of credit losses until it is probable a loss has been incurred to an expected credit loss methodology. The guidance requires the use of the modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The standard is effective for the Company as of January 1, 2020. The Company has formed a cross-functional implementation team to evaluate the provisions of the amendment, data requirements and determination of necessary modifications to its existing methodologies, systems and processes. The Company continues to evaluate the impact of the amended guidance on First Commonwealth’s financial condition or results of operations.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230),” which provides guidance on eight specific cash flow issues: 1. debt prepayment or extinguishment costs; 2. settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates; 3. contingent consideration payments made after a business combination; 4. proceeds from the settlement of insurance claims; 5. proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6. distributions received from equity method investees; 7. beneficial interests in securitizations transactions; and 8. separately identifiable cash flows and application of the predominance principle. This ASU provides additional guidance for these eight issues, reducing current and potential diversity in practice. This standard is effective for the Company as of January 1, 2018. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations.

In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805), Clarifying the Definition of a Business" which provides a screen to determine when a set of assets and activities (a "set") is not a business. The screen requires that when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen thereby reduces the number of transactions that need to be further evaluated. If the screen is not met, this ASU: 1. requires that to be considered a business, a set must include, at a minimum, an input and substantive process that significantly contributes to the ability to create output; and 2. removes the evaluation of whether a market participant could replace the missing elements. The amendment provides a framework to assist entities in evaluating whether both an input and substantive process is present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. This ASU also narrows the definition of the term output so that the term is consistent with how outputs are described in Topic 606. This standard is effective for interim and annual periods for fiscal years beginning after December 15, 2017. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations, but may impact future business combinations.

In January 2017, the FASB issued ASU No. 2017-04, "Intangibles-Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment" which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. Impairment should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. Income tax effects from any tax deductible goodwill should be taken into consideration of the carrying amount of the reporting unit when measuring for goodwill impairment, if applicable. An entity still has the option to perform the qualitative assessment for the reporting unit to determine if the quantitative impairment test is necessary. This standard is effective for interim and annual periods for fiscal years beginning after December 15, 2019. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations.

In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities" with the objective of improving the financial reporting of hedging relationships to better portray the economic results of risk management activities in its financial statements. The main provisions of this ASU update the hedge accounting model to expand the ability to hedge risk, reduce complexity, and ease certain documentation and assessment requirements. It also eliminates the requirement to separately measure and report hedge ineffectiveness, and generally requires the change in fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations.

In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the corporate income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The ASU is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company will early adopt ASU 2018-02 in the first quarter of 2018. This ASU is not expected to have a material impact on First Commonwealth's financial condition or results of operations.

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Acquisition (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Summary of Net Assets Acquired and Consideration Transferred

The table below summarizes the net assets acquired (at fair value) and consideration transferred in connection with the FirstMerit Bank, NA acquisition (dollars in thousands):

Consideration Received
Cash received	$	(476,555	)
Total consideration received				$	(476,555	)
Fair Value of Assets Acquired
Cash and cash equivalents	2,914
Loans	102,097
Premises and other equipment	6,072
Core deposit intangible	11,330
Other assets	353
Total assets acquired	122,766
Fair Value of Liabilities Assumed
Deposits	619,729
Other Liabilities	70
Total liabilities assumed	619,799
Total Fair Value of Identifiable Net Assets				(497,033		)
Goodwill				$	20,478

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Supplemental Comprehensive Income Disclosures (Tables)

12 Months Ended

Dec. 31, 2017

Supplemental Comprehensive Income Disclosures [Abstract]

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income

The following table identifies the related tax effects allocated to each component of other comprehensive income in the Consolidated Statements of Comprehensive Income as of December 31. Reclassification adjustments related to securities available for sale are included in the “Net securities gains (losses)” line in the Consolidated Statements of Income and reclassification adjustments related to losses on derivatives are included in the "Other operating expenses" line in the Consolidated Statements of Income.

	2017									2016									2015
	Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount
	(dollars in thousands)
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period	$	7,023		$	(2,458	)	$	4,565		$	(6,304	)	$	2,206		$	(4,098	)	$	2,798		$	(978	)	$	1,820
Reclassification adjustment for (gains) losses on securities included in net income	(5,040		)	1,764			(3,276		)	(617		)	216			(401		)	153			(54		)	99
Total unrealized gains (losses) on securities	1,983			(694		)	1,289			(6,921		)	2,422			(4,499		)	2,951			(1,032		)	1,919
Unrealized gains (losses) on derivatives:
Unrealized holding (losses) gains on derivatives arising during the period	(901		)	315			(586		)	(479		)	168			(311		)	450			(158		)	292
Reclassification adjustment for losses (gains) on derivatives included in net income	119			(42		)	77			(70		)	24			(46		)	(49		)	17			(32		)
Total unrealized (losses) gains on derivatives	(782		)	273			(509		)	(549		)	192			(357		)	401			(141		)	260
Unrealized gains (losses) for postretirement obligations:
Net gain (loss)	94			(20		)	74			331			(116		)	215			(102		)	36			(66		)
Total unrealized gains (losses) for postretirement obligations	94			(20		)	74			331			(116		)	215			(102		)	36			(66		)
Total other comprehensive income (loss)	$	1,295		$	(441	)	$	854		$	(7,139	)	$	2,498		$	(4,641	)	$	3,250		$	(1,137	)	$	2,113

The following table sets forth the amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit costs as of December 31:

	2017			2016			2015
	(dollars in thousands)
Amounts recognized in accumulated other comprehensive income, net of tax:
Net (gain) loss	$	(347	)	$	(225	)	$	(10	)
Transition obligation	—			—			—
Total	$	(347	)	$	(225	)	$	(10	)

Related Tax Effects Allocated to Each Component of Other Comprehensive Income

The following table details the change in components of OCI for the year-ended December 31:

	2017
	Securities Available for Sale			Derivatives			Post-Retirement Obligation			Accumulated Other Comprehensive Income
	(dollars in thousands)
Balance at January 1	$	(7,455	)	$	203		$	225		$	(7,027	)
Other comprehensive income before reclassification adjustment	4,565			(586		)				3,979
Amounts reclassified from accumulated other comprehensive income (loss)	(3,276		)	77						(3,199		)
Net gain							74			74
Net other comprehensive income during the period	1,289			(509		)	74			854
Balance at December 31	$	(6,166	)	$	(306	)	$	299		$	(6,173	)
	2016
	Securities Available for Sale			Derivatives			Post-Retirement Obligation			Accumulated Other Comprehensive Income
	(dollars in thousands)
Balance at January 1	$	(2,956	)	$	560		$	10		$	(2,386	)
Other comprehensive income before reclassification adjustment	(4,098		)	(311		)				(4,409		)
Amounts reclassified from accumulated other comprehensive income (loss)	(401		)	(46		)				(447		)
Net gain							215			215
Net other comprehensive income during the period	(4,499		)	(357		)	215			(4,641		)
Balance at December 31	$	(7,455	)	$	203		$	225		$	(7,027	)
	2015
	Securities Available for Sale			Derivatives			Post-Retirement Obligation			Accumulated Other Comprehensive Income
	(dollars in thousands)
Balance at January 1	$	(4,875	)	$	300		$	76		$	(4,499	)
Other comprehensive income before reclassification adjustment	1,820			292						2,112
Amounts reclassified from accumulated other comprehensive income (loss)	99			(32		)				67
Net gain							(66		)	(66		)
Net other comprehensive income during the period	1,919			260			(66		)	2,113
Balance at December 31	$	(2,956	)	$	560		$	10		$	(2,386	)

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Supplemental Cash Flow Disclosures (Tables)

12 Months Ended

Dec. 31, 2017

Supplemental Cash Flow Information [Abstract]

Non-cash Investing and Financing Activities

The following table presents information related to cash paid during the year for interest and income taxes as well as detail on non-cash investing and financing activities for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Cash paid during the period for:
Interest	$	21,552		$	19,208		$	15,818
Income taxes	27,902			19,950			8,331
Non-cash investing and financing activities:
Loans transferred to other real estate owned and repossessed assets	3,067			4,824			8,257
Other real estate sales transferred to loans	1,891			—			—
Fair value of loans transferred from held to maturity to available for sale	15,102			18,758			3,196
Gross increase (decrease) in market value adjustment to securities available for sale	1,983			(6,919		)	2,949
Gross (decrease) increase in market value adjustment to derivatives	(783		)	(549		)	401
Investments redeemed, not settled	—			3,769			—
Investments committed to purchase, not settled	—			—			694
Net assets (liabilities) acquired through acquisition	37,070			(501,516		)	463
Proceeds from death benefit on bank-owned life insurance not received	245			437			—
Treasury shares issued	2,258			—			—

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Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Composition of Weighted-Average Common Shares (Denominator) Used in Basic and Diluted Earnings Per Share

The following table summarizes the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the years ending December 31:

	2017		2016		2015
Weighted average common shares issued	111,809,880		105,563,455		105,563,455
Average treasury shares	(16,463,079	)	(16,605,461	)	(16,045,900	)
Average deferred compensation shares	(37,411	)	—		—
Average unearned nonvested shares	(89,334	)	(106,421	)	(160,788	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share	95,220,056		88,851,573		89,356,767
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share	73,570		—		—
Additional common stock equivalents (deferred compensation) used to calculated diluted earnings per share	37,411		—		—
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share	95,331,037		88,851,573		89,356,767

Common Stock Equivalents Not Included in Computation of Diluted Earnings Per Share

The following table shows the number of shares and the price per share related to common stock equivalents that were not included in the computation of diluted earnings per share for the years ended December 31, because to do so would have been anti-dilutive.

	12/31/2017					12/31/2016					12/31/2015
		Price Range					Price Range					Price Range
	Shares	From		To		Shares	From		To		Shares	From		To
Restricted Stock	18,173	$	8.55	$	13.96	67,920	$	8.38	$	13.96	92,002	$	6.82	$	9.84

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Derivatives (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Credit Value Adjustment Recorded Related to Notional Amount of Derivatives Outstanding

The following table depicts the credit value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of risk participation agreements participated to other banks at December 31:

	2017			2016
	(dollars in thousands)
Derivatives not Designated as Hedging Instruments
Credit value adjustment	$	(791	)	$	(317	)
Notional Amount:
Interest rate derivatives	401,304			345,102
Interest rate caps	46,444			14,762
Risk participation agreements	197,660			174,213
Sold credit protection on risk participation agreements	(46,170		)	(40,281		)
Derivatives Designated as Hedging Instruments
Interest rate swaps:
Fair value adjustment	459			(443		)
Notional Amount	150,000			200,000
Interest rate forwards:
Fair value adjustment	19			—
Notional Amount	17,000			—
Foreign exchange forwards:
Fair value adjustment	(70		)	(8		)
Notional Amount	10,077			4,749

Schedule of Change in Fair Value of Derivative Assets and Liabilities

The table below presents the amount representing the change in the fair value of derivative assets and derivative liabilities attributable to credit risk included in “Other income” on the Consolidated Statements of Income for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Non-hedging interest rate derivatives:
(Decrease) increase in other income	$	(473	)	$	219		$	(274	)
Hedging interest rate derivatives:
Increase in interest income	452			1,627			2,049
Increase in other income	119			70			64
Hedging interest rate forwards:
Decrease in other expense	(19		)	—			—
Hedging interest rate derivatives:
Increase (decrease) in other expense	4			(5		)	—

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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Held-to-maturity Securities

Below is an analysis of the amortized cost and fair values of debt securities held to maturity at December 31:.

	2017									2016
	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	$	3,925	$	—	$	(14	)	$	3,911	$	4,297	$	—	$	(4	)	$	4,293
Mortgage-Backed Securities – Commercial	58,249		—		(1,394		)	56,855		34,444		—		(561		)	33,883
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	305,126		10		(2,552		)	302,584		280,430		5		(2,527		)	277,908
Mortgage-Backed Securities – Commercial	14,056		—		(71		)	13,985		14,675		—		(142		)	14,533
Obligations of States and Political Subdivisions	40,540		335		(161		)	40,714		38,667		55		(721		)	38,001
Debt Securities Issued by Foreign Governments	200		—		—			200		—		—		—			—
Total Securities Held to Maturity	$	422,096	$	345	$	(4,192	)	$	418,249	$	372,513	$	60	$	(3,955	)	$	368,618

Analysis of Amortized Cost and Estimated Fair Values of Securities Available for Sale

Below is an analysis of the amortized cost and fair values of securities available for sale at December 31:

	2017									2016
	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	$	10,556	$	789	$	(7	)	$	11,338	$	15,143	$	1,481	$	(7	)	$	16,617
Mortgage-Backed Securities – Commercial	24,611		—		(462		)	24,149		—		—		—			—
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	632,422		2,622		(9,489		)	625,555		683,601		4,557		(11,305		)	676,853
Mortgage-Backed Securities – Commercial	—		—		—			—		1		—		—			1
Other Government-Sponsored Enterprises	1,098		—		(1		)	1,097		16,700		—		(69		)	16,631
Obligations of States and Political Subdivisions	27,083		327		—			27,410		27,075		195		(41		)	27,229
Corporate Securities	15,907		590		(4		)	16,493		5,903		416		—			6,319
Pooled Trust Preferred Collateralized Debt Obligations	27,499		526		(4,379		)	23,646		39,989		427		(7,124		)	33,292
Total Debt Securities	739,176		4,854		(14,342		)	729,688		788,412		7,076		(18,546		)	776,942
Equities	1,670		—		—			1,670		1,670		—		—			1,670
Total Securities Available for Sale	$	740,846	$	4,854	$	(14,342	)	$	731,358	$	790,082	$	7,076	$	(18,546	)	$	778,612

The amortized cost and estimated fair value of debt securities available for sale at December 31, 2017, by contractual maturity, are shown below:

	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	1,098	$	1,097
Due after 1 but within 5 years	13,989		14,020
Due after 5 but within 10 years	27,083		27,410
Due after 10 years	29,417		26,119
	71,587		68,646
Mortgage-Backed Securities (a)	667,589		661,042
Total Debt Securities	$	739,176	$	729,688

(a) Mortgage Backed Securities include an amortized cost of $35.2 million and a fair value of $35.5 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $632.4 million and a fair value of $625.6 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.

Proceeds from Sale, Gross Gains (Losses) Realized on Sales, Maturities and Other-Than-Temporary Impairment Charges Related to Securities Available for Sale

(a) Mortgage Backed Securities include an amortized cost of $35.2 million and a fair value of $35.5 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $632.4 million and a fair value of $625.6 million

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2017, 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	$	87	$	87
Due after 1 but within 5 years	3,663		3,660
Due after 5 but within 10 years	35,361		35,534
Due after 10 years	1,629		1,633
	40,740		40,914
Mortgage-Backed Securities (a)	381,356		377,335
Total Debt Securities	$	422,096	$	418,249

(a) Mortgage Backed Securities include an amortized cost of $62.2 million and a fair value of $60.8 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $319.2 million and a fair value of $316.6 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.

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Impairment of Investment Securities (Tables)

12 Months Ended

Dec. 31, 2017

Impairment of Investment Securities Disclosure [Abstract]

Schedule of Unrealized Losses and Estimated Fair Values

The following table presents the gross unrealized losses and estimated fair values at December 31, 2017 for both available for sale and held to maturity securities by investment category and time frame for which the 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	$	5,584	$	(21	)	$	—	$	—		$	5,584	$	(21	)
Mortgage-Backed Securities – Commercial	48,322		(962		)	32,683		(894		)	81,005		(1,856		)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	351,222		(2,295		)	400,984		(9,746		)	752,206		(12,041		)
Mortgage-Backed Securities – Commercial	13,985		(71		)	—		—			13,985		(71		)
Other Government-Sponsored Enterprises	997		(1		)	99		—			1,096		(1		)
Obligations of States and Political Subdivisions	7,144		(32		)	3,653		(129		)	10,797		(161		)
Corporate Securities	3,993		(4		)	—		—			3,993		(4		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			19,120		(4,379		)	19,120		(4,379		)
Total Securities	$	431,247	$	(3,386	)	$	456,539	$	(15,148	)	$	887,786	$	(18,534	)

At December 31, 2017, pooled trust preferred collateralized debt obligations accounted for 24% of unrealized losses due to changes in interest rates and the illiquid market for this type of investment. Fixed income securities issued by U.S. Government-sponsored enterprises comprised 65% of total unrealized losses due to changes in market interest rates. Government agencies and obligations of state and political subdivisions each account for 10% of total unrealized losses as a result of changes in market interest rates. At December 31, 2017, there were 98 debt securities in an unrealized loss position, 30 of which related to residential mortgage-backed securities with an unrealized loss of 12 months or more. There were no equity securities in an unrealized loss position at December 31, 2017.

The following table presents the gross unrealized losses and estimated fair value at December 31, 2016 for both available for sale and held to maturity securities by investment category and time frame for which the securities had 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	$	4,898	$	(11	)	$	—	$	—		$	4,898	$	(11	)
Mortgage-Backed Securities – Commercial	33,883		(561		)	—		—			33,883		(561		)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	670,708		(11,630		)	56,200		(2,202		)	726,908		(13,832		)
Mortgage-Backed Securities – Commercial	14,534		(142		)	—		—			14,534		(142		)
Other Government-Sponsored Enterprises	16,632		(69		)	—		—			16,632		(69		)
Obligations of States and Political Subdivisions	33,277		(762		)	—		—			33,277		(762		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			28,952		(7,124		)	28,952		(7,124		)
Total Securities	$	773,932	$	(13,175	)	$	85,152	$	(9,326	)	$	859,084	$	(22,501	)

Pooled Trust Preferred Collateralized Debt Obligations

The following table provides additional information related to our pooled trust preferred collateralized debt obligations as of December 31, 2017:

Deal	Class	Book Value		Estimated Fair Value		Unrealized Gain (Loss)			Moody’s/ Fitch Ratings	Number of Banks	Deferrals and Defaults as a % of Current Collateral		Excess Subordination as a % of Current Performing Collateral
(dollars in thousands)
PreTSL IV	Mezzanine	$	1,817	$	1,405	$	(412	)	Ba1/BB	6	18.05	%	72.13	%
PreTSL VIII	Mezzanine	2,043		2,228		185			C/C	26	38.52		0.00
PreTSL IX	Mezzanine	2,448		2,052		(396		)	B1/C	37	27.83		19.46
PreTSL X	Mezzanine	1,863		2,125		262			Caa1/C	41	27.93		1.62
PreTSL XII	Mezzanine	6,097		5,209		(888		)	B3/C	63	23.35		0.00
PreTSL XIV	Mezzanine	13,136		10,453		(2,683		)	Ba2/CCC	49	12.95		39.26
MMCap I	Mezzanine	95		174		79			Ca/C	7	69.35		69.99
Total		$	27,499	$	23,646	$	(3,853	)

Cumulative Roll Forward of Credit Losses Recognized in Earnings for Debt Securities Held and Not Intended to be Sold

The table below provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the years ended December 31:

	2017			2016			2015
	(dollars in thousands)
Balance, beginning (a)	$	17,056		$	24,851		$	26,246
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—			—
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—			—
Increases in cash flows expected to be collected, recognized over the remaining life of the security (b)	(890		)	(1,124		)	(1,177		)
Reduction for debt securities called during the period	(3,958		)	(6,671		)	(218		)
Balance, ending	$	12,208		$	17,056		$	24,851

(a) The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

(b) Represents the increase in cash flows recognized either as principal payments or interest income during the period.

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Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2017

Loans and Leases Receivable Disclosure [Abstract]

Outstanding Balances of Loan

The following table provides outstanding balances related to each of our loan types as of December 31:

	2017						2016
	Originated Loans		Acquired Loans		Total Loans		Originated Loans		Acquired Loans		Total Loans
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,122,741	$	40,642	$	1,163,383	$	1,131,148	$	8,399	$	1,139,547
Real estate construction	242,905		5,963		248,868		217,840		1,781		219,621
Residential real estate	1,206,119		220,251		1,426,370		1,165,851		63,341		1,229,192
Commercial real estate	1,892,185		126,911		2,019,096		1,717,043		25,167		1,742,210
Loans to individuals	543,411		6,248		549,659		546,589		2,188		548,777
Total loans	$	5,007,361	$	400,015	$	5,407,376	$	4,778,471	$	100,876	$	4,879,347

Credit Risk Profile by Creditworthiness

The following tables represent our credit risk profile by creditworthiness category for the years ended December 31:

	2017
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated Loans
Pass	$	1,061,147	$	242,905	$	1,194,352	$	1,855,253	$	543,175	$	4,896,832
Non-Pass
OAEM	26,757		—		1,435		13,326		—		41,518
Substandard	30,431		—		10,332		23,606		236		64,605
Doubtful	4,406		—		—		—		—		4,406
Total Non-Pass	61,594		—		11,767		36,932		236		110,529
Total	$	1,122,741	$	242,905	$	1,206,119	$	1,892,185	$	543,411	$	5,007,361
Acquired Loans
Pass	$	34,573	$	5,963	$	217,824	$	121,536	$	6,231	$	386,127
Non-Pass
OAEM	5,567		—		798		3,517		—		9,882
Substandard	502		—		1,629		1,858		17		4,006
Doubtful	—		—		—		—		—		—
Total Non-Pass	6,069		—		2,427		5,375		17		13,888
Total	$	40,642	$	5,963	$	220,251	$	126,911	$	6,248	$	400,015

	2016
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated Loans
Pass	$	1,038,844	$	217,565	$	1,152,511	$	1,691,220	$	546,316	$	4,646,456
Non-Pass
OAEM	27,387		275		5,923		7,596		—		41,181
Substandard	64,917		—		7,417		18,227		273		90,834
Doubtful	—		—		—		—		—		—
Total Non-Pass	92,304		275		13,340		25,823		273		132,015
Total	$	1,131,148	$	217,840	$	1,165,851	$	1,717,043	$	546,589	$	4,778,471
Acquired Loans
Pass	$	7,591	$	1,781	$	62,919	$	24,043	$	2,185	$	98,519
Non-Pass
OAEM	486		—		—		—		—		486
Substandard	322		—		422		1,124		3		1,871
Doubtful	—		—		—		—		—		—
Total Non-Pass	808		—		422		1,124		3		2,357
Total	$	8,399	$	1,781	$	63,341	$	25,167	$	2,188	$	100,876

Age Analysis of Past Due Loans by Segment

The following tables delineate the aging analysis of the recorded investments in past due loans as of December 31. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.

	2017
	30 - 59 days past due		60 - 89 days past due		90 days and greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Originated Loans
Commercial, financial, agricultural and other	$	378	$	61	$	40	$	18,741	$	19,220	$	1,103,521	$	1,122,741
Real estate construction	199		—		—		—		199		242,706		242,905
Residential real estate	4,618		1,025		1,076		6,225		12,944		1,193,175		1,206,119
Commercial real estate	2,198		28		6		3,240		5,472		1,886,713		1,892,185
Loans to individuals	1,899		769		623		236		3,527		539,884		543,411
Total	$	9,292	$	1,883	$	1,745	$	28,442	$	41,362	$	4,965,999	$	5,007,361
Acquired Loans
Commercial, financial, agricultural and other	$	6	$	7	$	—	$	436	$	449	$	40,193	$	40,642
Real estate construction	—		—		—		—		—		5,963		5,963
Residential real estate	148		9		83		705		945		219,306		220,251
Commercial real estate	—		—		—		1,077		1,077		125,834		126,911
Loans to individuals	36		20		26		17		99		6,149		6,248
Total	$	190	$	36	$	109	$	2,235	$	2,570	$	397,445	$	400,015

	2016
	30 - 59 days past due		60 - 89 days past due		90 days and greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Originated Loans
Commercial, financial, agricultural and other	$	2,380	$	171	$	75	$	17,928	$	20,554	$	1,110,594	$	1,131,148
Real estate construction	183		—		—		—		183		217,657		217,840
Residential real estate	4,133		1,089		995		5,792		12,009		1,153,842		1,165,851
Commercial real estate	265		327		57		3,443		4,092		1,712,951		1,717,043
Loans to individuals	1,640		776		970		273		3,659		542,930		546,589
Total	$	8,601	$	2,363	$	2,097	$	27,436	$	40,497	$	4,737,974	$	4,778,471
Acquired Loans
Commercial, financial, agricultural and other	$	486	$	—	$	—	$	—	$	486	$	7,913	$	8,399
Real estate construction	—		—		—		—		—		1,781		1,781
Residential real estate	148		39		34		422		643		62,698		63,341
Commercial real estate	—		—		—		162		162		25,005		25,167
Loans to individuals	1		7		—		3		11		2,177		2,188
Total	$	635	$	46	$	34	$	587	$	1,302	$	99,574	$	100,876

Recorded Investment and Unpaid Principal Balance for Impaired Loans with Associated Allowance

The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of December 31, 2017 and 2016. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired for the years ended December 31, 2017, 2016 and 2015. Average balances are calculated based on month-end balances of the loans for the period reported and are included in the table below based on its period end allowance position.

	2017
	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest Income Recognized
	(dollars in thousands)
Originated Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	5,548	$	12,153			$	10,282	$	394
Real estate construction	—		—				—		—
Residential real estate	10,625		12,470				11,366		355
Commercial real estate	5,155		5,489				6,469		583
Loans to individuals	347		383				353		19
Subtotal	21,675		30,495				28,470		1,351
With an allowance recorded:
Commercial, financial, agricultural and other	16,866		21,094		$	3,478	9,391		96
Real estate construction	—		—		—		—		—
Residential real estate	456		478		107		167		—
Commercial real estate	954		954		128		143		4
Loans to individuals	—		—		—		—		—
Subtotal	18,276		22,526		3,713		9,701		100
Total	$	39,951	$	53,021	$	3,713	$	38,171	$	1,451
Acquired Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	436	$	449			$	476	$	—
Real estate construction	—		—				25		—
Residential real estate	666		965				535		—
Commercial real estate	940		1,842				2,135		—
Loans to individuals	17		17				6		—
Subtotal	2,059		3,273				3,177		—
With an allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—
Real estate construction	—		—		—		—		—
Residential real estate	93		122		4		74		—
Commercial real estate	137		150		29		155		—
Loans to individuals	—		—		—		—		—
Subtotal	230		272		33		229		—
Total	$	2,289	$	3,545	$	33	$	3,406	$	—

	2016
	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest Income Recognized
	(dollars in thousands)
Originated Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	9,549	$	15,369			$	23,146	$	576
Real estate construction	—		—				4		44
Residential real estate	10,873		13,004				10,957		312
Commercial real estate	5,765		6,905				6,718		170
Loans to individuals	382		507				409		15
Subtotal	26,569		35,785				41,234		1,117
With an allowance recorded:
Commercial, financial, agricultural and other	13,423		19,226		$	2,530	13,885		99
Real estate construction	—		—		—		—		—
Residential real estate	424		475		164		241		4
Commercial real estate	810		810		434		555		25
Loans to individuals	—		—		—		—		—
Subtotal	14,657		20,511		3,128		14,681		128
Total	$	41,226	$	56,296	$	3,128	$	55,915	$	1,245
Acquired Loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	—	$	—			$	—	$	—
Real estate construction	—		—				—		—
Residential real estate	406		480				406		—
Commercial real estate	162		162				162		—
Loans to individuals	3		3				3		—
Subtotal	571		645				571		—
With an allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—
Real estate construction	—		—		—		—		—
Residential real estate	16		16		16		16		—
Commercial real estate	—		—		—		—		—
Loans to individuals	—		—		—		—		—
Subtotal	16		16		16		16		—
Total	$	587	$	661	$	16	$	587	$	—

	2015
	Average recorded investment		Interest Income Recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other	$	17,692	$	216
Real estate construction	95		—
Residential real estate	10,635		172
Commercial real estate	7,890		90
Loans to individuals	338		4
Subtotal	36,650		482
With an allowance recorded:
Commercial, financial, agricultural and other	7,731		129
Real estate construction	—		—
Residential real estate	403		—
Commercial real estate	674		4
Loans to individuals	—		—
Subtotal	8,808		133
Total	$	45,458	$	615

Troubled Debt Restructured Loans and Commitments

The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans as of December 31:

	2017		2016		2015
	(dollars in thousands)
Troubled debt restructured loans
Accrual status	$	11,563	$	13,790	$	14,139
Nonaccrual status	11,222		11,569		12,360
Total	$	22,785	$	25,359	$	26,499
Commitments
Letters of credit	$	60	$	—	$	—
Unused lines of credit	$	54	$	358	$	3,252
Total	$	114	$	358	$	3,252

The following table provides information related to restructured loans that were considered to be in default during the year ending December 31:

	2017			2016			2015
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars in thousands)
Residential real estate	—	$	—	4	$	313	3	$	97
Loans to individuals	1	2		—	—		—	—
Total	1	$	2	4	$	313	3	$	97

Troubled Debt Restructurings is 90 Days or More Past Due

he following tables provide detail, including specific reserve and reasons for modification, related to loans identified as troubled debt restructurings during the years ending December 31:

	2017
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	6	$	6,768	$	1,806	$	987	$	9,561	$	6,946	$	566
Residential real estate	20	134		261		573		968		851		1
Commercial real estate	5	179		—		269		448		412		29
Loans to individuals	10	—		28		49		77		65		—
Total	41	$	7,081	$	2,095	$	1,878	$	11,054	$	8,274	$	596

	2016
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	5	$	23	$	6,318	$	3,854	$	10,195	$	6,210	$	317
Residential real estate	39	107		214		2,619		2,940		2,698		124
Commercial real estate	8	1,368		—		25		1,393		1,271		59
Loans to individuals	13	23		82		25		130		96		—
Total	65	$	1,521	$	6,614	$	6,523	$	14,658	$	10,275	$	500

	2015
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	12	$	1,751	$	3,195	$	4,527	$	9,473	$	8,823	$	1,330
Residential real estate	32	—		296		1,414		1,710		1,575		2
Commercial real estate	1	—		—		464		464		389		—
Loans to individuals	16	3		167		35		205		169		—
Total	61	$	1,754	$	3,658	$	6,440	$	11,852	$	10,956	$	1,332

Allowance for Credit Losses

The following tables provide detail related to the allowance for credit losses for the years ended December 31.

	2017
	Commercial, financial, agricultural and other			Real estate construction			Residential real estate			Commercial real estate			Loans to individuals			Total
	(dollars in thousands)
Allowance for credit losses:
Originated Loans:
Beginning balance	$	35,974		$	577		$	2,492		$	6,619		$	4,504		$	50,166
Charge-offs	(6,176		)	—			(1,261		)	(340		)	(4,220		)	(11,997		)
Recoveries	3,900			465			304			274			460			5,403
Provision (credit)	(10,280		)	307			1,218			10,775			2,660			4,680
Ending balance	23,418			1,349			2,753			17,328			3,404			48,252
Acquired Loans:
Beginning balance	$	—		$	—		$	19		$	—		$	—		$	19
Charge-offs	(458		)	—			(26		)	—			(28		)	(512		)
Recoveries	1			5			67			4			55			132
Provision (credit)	468			(5		)	(54		)	25			(27		)	407
Ending balance	11			—			6			29			—			46
Total ending balance	$	23,429		$	1,349		$	2,759		$	17,357		$	3,404		$	48,298
Ending balance: individually evaluated for impairment	$	3,478		$	—		$	111		$	157		$	—		$	3,746
Ending balance: collectively evaluated for impairment	19,951			1,349			2,648			17,200			3,404			44,552
Loans:
Ending balance	1,163,383			248,868			1,426,370			2,019,096			549,659			5,407,376
Ending balance: individually evaluated for impairment	22,450			—			6,698			6,003			—			35,151
Ending balance: collectively evaluated for impairment	1,140,933			248,868			1,419,672			2,013,093			549,659			5,372,225

	2016
	Commercial, financial, agricultural and other			Real estate construction			Residential real estate			Commercial real estate			Loans to individuals			Total
	(dollars in thousands)
Allowance for credit losses:
Beginning balance	$	31,035		$	887		$	2,606		$	11,924		$	4,360		$	50,812
Charge-offs	(19,603		)	—			(1,189		)	(570		)	(4,943		)	(26,305		)
Recoveries	4,164			562			481			1,522			469			7,198
Provision (credit)	20,378			(872		)	594			(6,257		)	4,618			18,461
Ending balance on originated loans	35,974			577			2,492			6,619			4,504			50,166
Ending balance on acquired loans (1)	—			—			19			—			—			19
Total ending balance	$	35,974		$	577		$	2,511		$	6,619		$	4,504		$	50,185
Ending balance: individually evaluated for impairment	$	2,530		$	—		$	180		$	434		$	—		$	3,144
Ending balance: collectively evaluated for impairment	33,444			577			2,331			6,185			4,504			47,041
Loans:
Ending balance	1,139,547			219,621			1,229,192			1,742,210			548,777			4,879,347
Ending balance: individually evaluated for impairment	22,325			—			5,875			5,468			—			33,668
Ending balance: collectively evaluated for impairment	1,117,222			219,621			1,223,317			1,736,742			548,777			4,845,679

⁽¹⁾ Amount reflects provision expense and ending allowance balance for loans acquired in 2016 as part of the purchase of FirstMerit branches.

	2015
	Commercial, financial, agricultural and other			Real estate construction			Residential real estate			Commercial real estate			Loans to individuals			Total
	(dollars in thousands)
Allowance for credit losses:
Beginning balance	$	29,627		$	2,063		$	3,664		$	11,881		$	4,816		$	52,051
Charge-offs	(11,429		)	(8		)	(1,539		)	(1,538		)	(4,354		)	(18,868		)
Recoveries	1,097			84			587			229			684			2,681
Provision (credit)	11,740			(1,252		)	(106		)	1,352			3,214			14,948
Ending balance	$	31,035		$	887		$	2,606		$	11,924		$	4,360		$	50,812
Ending balance: individually evaluated for impairment	$	6,952		$	—		$	51		$	42		$	—		$	7,045
Ending balance: collectively evaluated for impairment	24,083			887			2,555			11,882			4,360			43,767
Loans:
Ending balance	1,150,906			220,736			1,224,465			1,479,000			608,643			4,683,750
Ending balance: individually evaluated for impairment	30,767			—			6,099			7,143			—			44,009
Ending balance: collectively evaluated for impairment	1,120,139			220,736			1,218,366			1,471,857			608,643			4,639,741

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Commitments and Letters of Credit (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Notional Amount of Commitments and Letter of Credit Instruments

The following table identifies the notional amount of those instruments at December 31:

	2017		2016
	(dollars in thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,840,180	$	1,733,820
Financial standby letters of credit	17,946		18,108
Performance standby letters of credit	20,472		26,630
Commercial letters of credit	1,149		1,301

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Schedule of Premises and Equipment

Premises and equipment are described as follows:

	Estimated Useful Life	2017		2016
	(dollars in thousands)
Land	Indefinite	$	15,389	$	13,679
Buildings and improvements	10-50 years	88,386		80,364
Leasehold improvements	5-40 years	17,812		15,871
Furniture and equipment	3-7 years	64,609		61,324
Software	3-7 years	37,434		36,077
Subtotal		223,630		207,315
Less accumulated depreciation and amortization		142,291		139,781
Total premises and equipment		$	81,339	$	67,534

Schedule of Future Minimum Rentals

First Commonwealth leases various premises and assorted equipment under non-cancellable agreements. Total future minimal rental commitments at December 31, 2017, were as follows:

	Premises		Equipment
	(dollars in thousands)
2018	$	4,459	$	136
2019	4,106		78
2020	3,348		15
2021	2,929		5
2022	2,646		—
Thereafter	12,851		—
Total	$	30,339	$	234

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Goodwill and Other Amortizing Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill Disclosure [Abstract]

Summarized Other Intangible Assets

The following table summarizes other intangible assets:

	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets
	(dollars in thousands)
December 31, 2017
Customer deposit intangibles	$	19,471	$	(6,071	)	$	13,400
Customer list intangible	$	2,283	$	(751	)	$	1,532
Total other intangible assets	$	21,754	$	(6,822	)	$	14,932
December 31, 2016
Customer deposit intangibles	$	30,471	$	(18,998	)	$	11,473
Customer list intangible	$	984	$	(444	)	$	540
Total other intangible assets	$	31,455	$	(19,442	)	$	12,013

Estimated Amortization Expense of Core Deposit Intangibles

The following presents the estimated amortization expense of core deposit and customer list intangibles:

	Core Deposit Intangibles		Customer List Intangible		Total
	(dollars in thousands)
2018	$	2,714	$	318	$	3,032
2019	2,414		271		2,685
2020	2,062		230		2,292
2021	1,768		193		1,961
2022	1,473		159		1,632
Thereafter	2,969		361		3,330
Total	$	13,400	$	1,532	$	14,932

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Interest-Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2017

Deposits [Abstract]

Components of Interest-Bearing Deposits

Components of interest-bearing deposits at December 31 were as follows:

	2017		2016
	(dollars in thousands)
Interest-bearing demand deposits	$	187,281	$	114,043
Savings deposits	3,361,840		2,972,747
Time deposits	614,813		591,832
Total interest-bearing deposits	$	4,163,934	$	3,678,622

Scheduled Maturities of Time Deposits

Included in time deposits at December 31, 2017, were certificates of deposit with the following scheduled maturities (dollars in thousands):

2018	$	376,181
2019	144,091
2020	43,463
2021	35,530
2022 and thereafter	15,548
Total	$	614,813

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Short-term Borrowings (Tables)

12 Months Ended

Dec. 31, 2017

Short-term Debt [Abstract]

Summary of Short-Term Borrowings

Short-term borrowings at December 31 were as follows:

	2017						2016						2015
	Ending Balance		Average Balance		Average Rate		Ending Balance		Average Balance		Average Rate		Ending Balance		Average Balance		Average Rate
	(dollars in thousands)
Federal funds purchased	$	—	$	6,225	1.24	%	$	—	$	6,887	0.60	%	$	4,000	$	14,832	0.36	%
Borrowings from FHLB	567,500		710,932		1.18		748,000		1,265,932		0.61		1,400,000		1,117,522		0.42
Securities sold under agreements to repurchase	139,966		150,234		0.24		119,943		114,918		0.23		106,825		120,177		0.23
Total	$	707,466	$	867,391	1.01		$	867,943	$	1,387,737	0.58		$	1,510,825	$	1,252,531	0.40
Maximum total at any month-end	$	967,259					$	1,530,678					$	1,510,825
Weighted average rate at year-end					1.27	%					0.63	%					0.53	%

Interest Expense on Short-Term Borrowings

Interest expense on short-term borrowings for the years ended December 31 is detailed below:

	2017		2016		2015
	(dollars in thousands)
Federal funds purchased	$	77	$	41	$	54
Borrowings from FHLB	8,360		7,765		4,684
Securities sold under agreements to repurchase	362		270		280
Total interest on short-term borrowings	$	8,799	$	8,076	$	5,018

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Subordinated Debentures (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Subordinated Debentures [Abstract]

Subordinated Debentures Outstanding

Subordinated Debentures outstanding at December 31 are as follows:

		2017			2016
	Due	Amount		Rate	Amount		Rate
		(dollars in thousands)
Owed to:
First Commonwealth Capital Trust II	2034	$	30,929	LIBOR + 2.85	$	30,929	LIBOR + 2.85
First Commonwealth Capital Trust III	2034	41,238		LIBOR + 2.85	41,238		LIBOR + 2.85
Total		$	72,167		$	72,167

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Other Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Summary of Other Long-Term Debt

Other long-term debt at December 31 follows:

	2017				2016
	Amount		Weighted Average Contractual Rate		Amount		Weighted Average Contractual Rate
	(dollars in thousands)
Borrowings from FHLB due:
2017					$	586	3.83	%
2018	$	607	3.83	%	609		3.83
2019	631		3.83		633		3.84
2020	656		3.84		658		3.84
2021	681		3.84		684		3.84
2022	708		3.85
Thereafter	4,878		3.80		5,579		3.81
Total	$	8,161			$	8,749

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Fair Values of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

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)
Pooled Trust Preferred Securities	$	23,646		Discounted Cash Flow	Probability of default	0.00% - 100% (8.98%)
					Prepayment rates	0.00% - 72.02% (4.46%)
					Discount rates	5.00% - 11.50% (a)
Equities	1,670			Par Value	N/A	N/A
Impaired Loans	1,336		(b)	Gas Reserve study	Discount rate	10.00%
					Gas per MMBTU	$2.87 - $3.61 (c)
					Oil per BBL/d	$56.05 - $57.65 (c)
	6,820		(b)	Discounted Cash Flow	Discount Rate	1.90% - 4.68%
Limited Partnership Investments	2,143			Par Value	N/A	N/A

(a) incorporates spread over the risk free rate related primarily to credit quality and illiquidity of securities.

(b) the remainder of impaired loans valued using Level 3 inputs are not included in this disclosure as the values of those loans are based on bankruptcy agreement documentation.

(c) 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:

	2017
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—	$	11,338	$	—	$	11,338
Mortgage-Backed Securities—Commercial	—		24,149		—		24,149
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—		625,555		—		625,555
Mortgage-Backed Securities—Commercial	—		—		—		—
Other Government-Sponsored Enterprises	—		1,097		—		1,097
Obligations of States and Political Subdivisions	—		27,410		—		27,410
Corporate Securities	—		16,493		—		16,493
Pooled Trust Preferred Collateralized Debt Obligations	—		—		23,646		23,646
Total Debt Securities	—		706,042		23,646		729,688
Equities	—		—		1,670		1,670
Total Securities Available for Sale	—		706,042		25,316		731,358
Other Investments	—		29,837		—		29,837
Loans Held for Sale	—		14,850		—		14,850
Other Assets (a)	—		1,778		2,143		3,921
Total Assets	$	—	$	752,507	$	27,459	$	779,966
Other Liabilities (a)	$	—	$	3,079	$	—	$	3,079
Total Liabilities	$	—	$	3,079	$	—	$	3,079

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

	2016
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—	$	16,617	$	—	$	16,617
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—		676,853		—		676,853
Mortgage-Backed Securities—Commercial	—		1		—		1
Other Government-Sponsored Enterprises	—		16,631		—		16,631
Obligations of States and Political Subdivisions	—		27,229		—		27,229
Corporate Securities	—		6,319		—		6,319
Pooled Trust Preferred Collateralized Debt Obligations	—		—		33,292		33,292
Total Debt Securities	—		743,650		33,292		776,942
Equities	—		—		1,670		1,670
Total Securities Available for Sale	—		743,650		34,962		778,612
Other Investments	—		36,498		—		36,498
Loans Held for Sale	—		7,052		—		7,052
Other Assets (a)	—		6,089		930		7,019
Total Assets	$	—	$	793,289	$	35,892	$	829,181
Other Liabilities (a)	$	—	$	5,972	$	—	$	5,972
Total Liabilities	$	—	$	5,972	$	—	$	5,972

(a)

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, 2017:

	Pooled Trust Preferred Collateralized Debt Obligations			Equities		Other Assets		Total
	(dollars in thousands)
Balance, beginning of year	$	33,292		$	1,670	$	930	$	35,892
Total gains or losses
Included in earnings	4,329			—		—		4,329
Included in other comprehensive income	3,725			—		—		3,725
Purchases, issuances, sales, and settlements
Purchases	—			—		1,213		1,213
Issuances	—			—		—		—
Sales	—			—		—		—
Settlements	(17,700		)	—		—		(17,700		)
Transfers from Level 3	—			—		—		—
Transfers into Level 3	—			—		—		—
Balance, end of year	$	23,646		$	1,670	$	2,143	$	27,459

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, 2017.

During the year ended December 31, 2017, 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, 2016:

		Pooled Trust Preferred Collateralized Debt Obligations			Equities			Other Assets		Total
	(dollars in thousands)
Balance, beginning of year		$	35,658		$	2,170		$	—	$	37,828
Total gains or losses
Included in earnings		589			—			—		589
Included in other comprehensive income		850			—			—		850
Purchases, issuances, sales, and settlements
Purchases		—			36			394		430
Issuances		—			—			—		—
Sales		—			—			—		—
Settlements		(3,805		)	—			—		(3,805		)
Transfers from Level 3		—			(536		)	—		(536		)
Transfers into Level 3		—			—			536		536
Balance, end of year		$	33,292		$	1,670		$	930	$	35,892

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:

	2017
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Impaired loans	$	—	$	23,249	$	15,245	$	38,494	$	(1,548	)
Other real estate owned	—		3,264		—		3,264		(1,099		)
Total Assets	$	—	$	26,513	$	15,245	$	41,758	$	(2,647	)

	2016
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Impaired loans	$	—	$	18,679	$	19,990	$	38,669	$	(9,032	)
Other real estate owned	—		7,566		—		7,566		(703		)
Total Assets	$	—	$	26,245	$	19,990	$	46,235	$	(9,735	)

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:

	2017
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	98,624	$	98,624	$	98,624	$	—	$	—
Interest-bearing deposits	8,668		8,668		8,668		—		—
Securities available for sale	731,358		731,358		—		706,042		25,316
Securities held to maturity	422,096		418,249		—		418,249		—
Other investments	29,837		29,837		—		29,837		—
Loans held for sale	14,850		14,850		—		14,850		—
Loans	5,407,376		5,443,434		—		23,249		5,420,185
Financial liabilities
Deposits	5,580,705		5,580,812		—		5,580,812		—
Short-term borrowings	707,466		707,263		—		707,263		—
Long-term debt	8,161		8,548		—		8,548		—
Subordinated debt	72,167		65,785		—		—		65,785
Capital lease obligation	7,590		7,590		—		7,590		—

	2016
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	91,033	$	91,033	$	91,033	$	—	$	—
Interest-bearing deposits	24,644		24,644		24,644		—		—
Securities available for sale	778,612		778,612		—		743,650		34,962
Securities held to maturity	372,513		368,618		—		368,618		—
Other investments	36,498		36,498		—		36,498		—
Loans held for sale	7,052		7,052		—		7,052		—
Loans	4,879,347		4,878,254		—		18,679		4,859,575
Financial liabilities
Deposits	4,947,408		4,949,714		—		4,949,714		—
Short-term borrowings	867,943		867,667		—		867,667		—
Long-term debt	8,749		9,169		—		9,169		—
Subordinated debt	72,167		65,656		—		—		65,656

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Provision (Benefit)

The income tax provision for the years ended December 31 is as follows:

	2017			2016			2015
	(dollars in thousands)
Current tax provision
Federal	$	29,071		$	19,879		$	8,610
State	274			154			68
Total current tax provision	29,345			20,033			8,678
Deferred tax provision (benefit):
Federal	19,237			5,846			12,158
State	(21		)	(240		)	—
Total deferred tax provision	19,216			5,606			12,158
Total tax provision	$	48,561		$	25,639		$	20,836

Schedule of Effective Income Tax Rate Reconciliation

The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:

	2017					2016					2015
	Amount			% of Pretax Income		Amount			% of Pretax Income		Amount			% of Pretax Income
	(dollars in thousands)
Tax at statutory rate	$	36,304		35	%	$	29,830		35	%	$	24,843		35	%
Increase (decrease) resulting from:
State income tax, net of federal benefit	164			—		(56		)	—		44			—
Income from bank owned life insurance	(1,995		)	(2	)	(1,883		)	(2	)	(1,894		)	(3	)
Tax-exempt interest income, net	(2,709		)	(3	)	(2,434		)	(3	)	(2,232		)	(3	)
Tax credits	(11		)	—		—			—		(61		)	—
Enactment of federal tax reform	16,709			17		—			—		—			—
Other	99			—		182			—		136			—
Total tax provision	$	48,561		47	%	$	25,639		30	%	$	20,836		29	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below:

	2017			2016
	(dollars in thousands)
Deferred tax assets:
Allowance for credit losses	$	10,223		$	17,616
Postretirement benefits other than pensions	345			611
Alternative minimum tax credit carryforward	201			—
Unrealized loss on securities available for sale	2,091			3,905
Net operating loss carryforward	6,145			—
Writedown of other real estate owned	878			1,266
Deferred compensation	1,514			1,966
Accrued interest on nonaccrual loans	1,017			1,701
Accrued incentives	1,277			2,627
Unfunded loan commitments & other reserves	1,098			1,452
Deferred rent	801			1,285
Other	1,224			1,966
Total deferred tax assets	26,814			34,395
Deferred tax liabilities:
Income from unconsolidated subsidiary	(380		)	(623		)
Depreciation of assets	(587		)	(28		)
Other	(338		)	(429		)
Total deferred tax liabilities	(1,305		)	(1,080		)
Net deferred tax asset	$	25,509		$	33,315

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Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Cost

Net periodic benefit cost of these plans for the years ended December 31, was as follows:

	2017			2016			2015
	(dollars in thousands)
Service cost	$	—		$	—		$	—
Interest cost on projected benefit obligation	49			67			62
Amortization of transition obligation	—			—			—
Gain amortization	(21		)	(7		)	(4		)
Net periodic benefit cost	$	28		$	60		$	58

Schedule of Changes in Benefit Obligations and Plan Assets

The following table sets forth the change in the benefit obligation and plan assets as of December 31:

	2017			2016
	(dollars in thousands)
Change in Benefit Obligation
Benefit obligation at beginning of year	$	1,394		$	1,815
Service cost	—			—
Interest cost	49			67
Amendments	—			—
Actuarial gain	(116		)	(337		)
Net benefits paid	(133		)	(151		)
Benefit obligation at end of year	1,194			1,394
Change in Plan Assets
Fair value of plan assets at beginning of year	—			—
Actual return on plan assets	—			—
Employer contributions	133			151
Net benefits paid	(133		)	(151		)
Fair value of plan assets at end of year	—			—
Funded Status at End of Year	1,194			1,394
Unrecognized transition obligation	—			—
Unrecognized net gain	440			345
Amounts recognized in retained earnings	$	1,634		$	1,739

Schedule of Amounts Recognized as Other Liabilities

As of December 31, the funded status of the plan is:

	2017		2016
	(dollars in thousands)
Amounts Recognized in the Statement of Financial Condition as Other liabilities	$	1,194	$	1,394

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income

The following table identifies the related tax effects allocated to each component of other comprehensive income in the Consolidated Statements of Comprehensive Income as of December 31. Reclassification adjustments related to securities available for sale are included in the “Net securities gains (losses)” line in the Consolidated Statements of Income and reclassification adjustments related to losses on derivatives are included in the "Other operating expenses" line in the Consolidated Statements of Income.

	2017									2016									2015
	Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount
	(dollars in thousands)
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period	$	7,023		$	(2,458	)	$	4,565		$	(6,304	)	$	2,206		$	(4,098	)	$	2,798		$	(978	)	$	1,820
Reclassification adjustment for (gains) losses on securities included in net income	(5,040		)	1,764			(3,276		)	(617		)	216			(401		)	153			(54		)	99
Total unrealized gains (losses) on securities	1,983			(694		)	1,289			(6,921		)	2,422			(4,499		)	2,951			(1,032		)	1,919
Unrealized gains (losses) on derivatives:
Unrealized holding (losses) gains on derivatives arising during the period	(901		)	315			(586		)	(479		)	168			(311		)	450			(158		)	292
Reclassification adjustment for losses (gains) on derivatives included in net income	119			(42		)	77			(70		)	24			(46		)	(49		)	17			(32		)
Total unrealized (losses) gains on derivatives	(782		)	273			(509		)	(549		)	192			(357		)	401			(141		)	260
Unrealized gains (losses) for postretirement obligations:
Net gain (loss)	94			(20		)	74			331			(116		)	215			(102		)	36			(66		)
Total unrealized gains (losses) for postretirement obligations	94			(20		)	74			331			(116		)	215			(102		)	36			(66		)
Total other comprehensive income (loss)	$	1,295		$	(441	)	$	854		$	(7,139	)	$	2,498		$	(4,641	)	$	3,250		$	(1,137	)	$	2,113

The following table sets forth the amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit costs as of December 31:

	2017			2016			2015
	(dollars in thousands)
Amounts recognized in accumulated other comprehensive income, net of tax:
Net (gain) loss	$	(347	)	$	(225	)	$	(10	)
Transition obligation	—			—			—
Total	$	(347	)	$	(225	)	$	(10	)

Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligation

Weighted-average assumptions used to determine the benefit obligation as of December 31 are as follows:

	2017		2016		2015
Weighted-average Assumptions
Discount rate	3.37	%	3.74	%	3.88	%
Health care cost trend: Initial	6.00	%	6.00	%	6.25	%
Health care cost trend: Ultimate	4.75	%	4.75	%	4.75	%
Year ultimate reached	2023		2022		2022

Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Cost

Weighted-average assumptions used to determine the benefit obligation as of December 31 are as follows:

	2017		2016		2015
Weighted-average Assumptions
Discount rate	3.37	%	3.74	%	3.88	%
Health care cost trend: Initial	6.00	%	6.00	%	6.25	%
Health care cost trend: Ultimate	4.75	%	4.75	%	4.75	%
Year ultimate reached	2023		2022		2022

Weighted-average assumptions used to determine the net benefit costs as of December 31 are as follows:

	2017		2016		2015
Weighted Average Assumptions for Net Periodic Cost
Discount rate	3.74	%	3.88	%	3.61	%
Health care cost trend: Initial	6.00	%	6.25	%	6.50	%
Health care cost trend: Ultimate	4.75	%	4.75	%	4.75	%
Year ultimate reached	2022		2022		2022
Corridor	10.00	%	10.00	%	10.00	%
Recognition period for gains and losses	11.0		11.0		11.0

Schedule of Impact of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

The health care cost trend rate assumption can have a significant impact on the amounts reported for this plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

	One-Percentage- Point Increase		One-Percentage- Point Decrease
	(dollars in thousands)
Effect on postretirement benefit obligation	$	29	$	(27	)
Effect on total of service and interest cost components	2		(2		)

Schedule of Projected Benefit Payments

As of December 31, 2017, the projected benefit payments for the next ten years are as follows:

	Projected Benefit         Payments
	(dollars in thousands)
2018	$	152
2019	128
2020	122
2021	115
2022	107
2023 - 2027	422

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income

The estimated costs that will be amortized from accumulated other comprehensive income into net periodic cost for 2018 are as follows (dollars in thousands):

	Postretirement Benefits
	(dollars in thousands)
Net gain	$	(35	)
Transition obligation	—
Total	$	(35	)

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Incentive Compensation Plan (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

The following provides detail on the restricted stock awards which were issued and outstanding in 2017, 2016 and 2015 in order to retain and attract key employees. The grant date fair value of the restricted stock awards is equal to the price of First Commonwealth’s common stock on grant date.

Grant Date	Shares issued	Grant Price		Vesting Date	Number of Equal Vesting Periods
March 24, 2017	5,000	$	12.99	March 24, 2020	1
March 24, 2017	7,000	12.99		August 31, 2017	1
March 24, 2017	7,000	12.99		March 24, 2020	1
March 24, 2017	7,000	12.99		August 31, 2017	1
December 19, 2016	15,000	13.96		December 19, 2019	3
September 30, 2016	10,000	10.09		September 30, 2019	1
September 19, 2016	33,000	10.02		September 19, 2019	3
June 7, 2016	10,000	9.34		June 7, 2019	1
March 1, 2016	10,000	8.84		March 1, 2019	1
March 1, 2016	5,000	8.84		March 1, 2019	1
March 1, 2016	20,000	8.84		August 31, 2017	1
February 18, 2016	18,348	8.43		December 31, 2016	1
June 26, 2015	1,000	9.84		June 26, 2018	1
February 20, 2015	10,000	8.45		August 31, 2017	1
February 20, 2015	34,200	8.45		December 31, 2015	1
February 5, 2015	50,000	8.55		February 5, 2018	1
January 29, 2015	20,170	7.93		December 31, 2015	1
January 15, 2015	20,000	8.38		January 15, 2017	1
November 17, 2014	3,500	9.26		November 17, 2017	1
April 8, 2014	27,500	8.89		April 8, 2017	3
March 24, 2014	46,000	9.18		March 24, 2017	1
March 4, 2014	5,000	8.75		March 4, 2017	1
January 1, 2014	12,626	8.82		December 31, 2014	1
August 16, 2013	3,000	7.57		August 16, 2016	1
May 31, 2013	45,000	7.21		May 31, 2016	3
March 1, 2013	10,000	7.35		March 1, 2016	1
February 24, 2012	34,000	5.96		December 31, 2014	1
February 24, 2012	90,000	5.96		February 24, 2015	1
January 1, 2012	100,000	5.26		January 1, 2016	4
November 21, 2011	10,000	4.41		November 21, 2014	1
April 1, 2011	25,000	6.82		April 1, 2016	1

Unvested Service-Based Restricted Stock Awards

A summary of the status of First Commonwealth’s unvested service-based restricted stock awards as of December 31 and changes for the years ended on those dates is presented below:

	2017				2016				2015
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Outstanding, beginning of the year	247,668		$	9.34	231,834		$	8.01	265,000		$	7.08
Granted	26,000		12.99		121,348		9.88		135,370		8.41
Vested	(151,668	)	9.49		(105,514	)	7.04		(168,536	)	6.87
Forfeited	(5,000	)	8.55		—		—		—		—
Outstanding, end of the year	117,000		9.99		247,668		9.34		231,834		8.01

Schedule of Restricted Stock Units Granted Based on Performance [Table Text Block]

The following provides detail on restricted stock awards estimated to be granted on a performance award basis during 2017, 2016 and 2015. These plans were previously approved by the Board of Directors.

Grant Date	Target Share Award	Performance Period (years)	Award if threshold met		Award if targets are met		Award if superior met		Award if threshold not achieved		Vesting After Performance Period (years)	Final vesting
February 24, 2012	68,000	3	40	%	100	%	200	%	—	%	1	December 31, 2015
January 28, 2013	128,611	3	40	%	100	%	200	%	—	%	1	December 31, 2016
January 27, 2014	125,000	3	40	%	100	%	200	%	—	%	0	December 31, 2016
January 26, 2015	125,000	3	40	%	100	%	200	%	—	%	0	December 31, 2017
December 30, 2015	60,000	5									0	December 31, 2020
February 18, 2016	160,650	3	40	%	100	%	200	%	—	%	0	December 31, 2018
February 23, 2017	93,500	3	40	%	100	%	200	%	—	%	0	December 31, 2019

Unvested Target Award

The following table summarizes the estimated unvested target share awards for the Plans as of December 31:

	2017		2016		2015
Outstanding, beginning of the year	426,596		320,705		284,000
Granted	276,442		176,936		185,000
Issued	(171,637	)	(18,348	)	(34,200	)
Forfeited	(6,356	)	(52,697	)	(114,095	)
Outstanding, end of the year	525,045		426,596		320,705

Outstanding Stock Options

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2017

Related Party Transactions [Abstract]

Loans to Related Parties

The following is an analysis of loans to related parties (dollars in thousands):

December 31, 2016	$	1,164
Advances	740
Repayments	(1,127		)
Other	4,871
December 31, 2017	$	5,648

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Regulatory Restrictions and Capital Adequacy (Tables)

12 Months Ended

Dec. 31, 2017

Regulatory Capital Requirements [Abstract]

Schedule of Capital Amount and Ratio Considered to be Capitalized

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 forth in the table below:

	Actual				Minimum Capital Required - Basel III Phase-In Schedule				Minimum Capital Required - Basel III Fully Phased-In				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(dollars in thousands)
As of December 31, 2017
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	745,473	12.34	%	$	558,728	9.25	%	$	634,232	10.50	%	$	604,030	10.00	%
First Commonwealth Bank	712,341		11.83		556,872		9.25		632,124		10.50		602,023		10.00
Tier I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	691,993	11.46	%	$	437,922	7.25	%	$	513,426	8.50	%	$	483,224	8.00	%
First Commonwealth Bank	658,861		10.94		436,467		7.25		511,720		8.50		481,619		8.00
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	691,993	9.74	%	$	284,100	4.00	%	$	284,100	4.00	%	$	355,125	5.00	%
First Commonwealth Bank	658,861		9.30		283,344		4.00		283,344		4.00		354,180		5.00
Common Equity Tier I to Risk Weighted Assets
First Commonwealth Financial Corporation	$	623,252	10.32	%	$	347,317	5.75	%	$	422,821	7.00	%	$	392,620	6.50	%
First Commonwealth Bank	658,861		10.94		346,163		5.75		421,416		7.00		391,315		6.50

	Actual				Minimum Capital Required - Basel III Phase-In Schedule				Minimum Capital Required - Basel III Fully Phased-In				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(dollars in thousands)
As of December 31, 2016
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	687,554	12.28	%	$	483,034	8.63	%	$	588,042	10.50	%	$	560,040	10.00	%
First Commonwealth Bank	617,076		11.06		481,248		8.63		585,867		10.50		557,969		10.00
Tier I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	633,262	11.31	%	$	371,026	6.63	%	$	476,034	8.50	%	$	448,032	8.00	%
First Commonwealth Bank	562,784		10.09		369,654		6.63		474,273		8.50		446,375		8.00
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	633,262	9.83	%	$	257,776	4.00	%	$	257,776	4.00	%	$	322,220	5.00	%
First Commonwealth Bank	562,784		8.79		256,214		4.00		256,214		4.00		320,268		5.00
Common Equity Tier I to Risk Weighted Assets
First Commonwealth Financial Corporation	$	563,262	10.06	%	$	287,020	5.13	%	$	392,028	7.00	%	$	364,026	6.50	%
First Commonwealth Bank	562,784		10.09		285,959		5.13		390,578		7.00		362,680		6.50

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Condensed Financial Information of First Commonwealth Financial Corporation (parent company only) (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Statements of Financial Condition

Statements of Financial Condition	December 31,
	2017		2016
	(dollars in thousands)
Assets
Cash	$	16,432	$	30,387
Loans	17		19
Investment in subsidiaries	927,765		770,214
Investment in unconsolidated subsidiary trusts	2,186		2,185
Investment in jointly-owned company	9,191		9,042
Premises and equipment, net	3,715		3,793
Receivable from subsidiaries	—		33
Dividends receivable from subsidiaries	—		4,662
Other assets	4,996		2,453
Total assets	$	964,302	$	822,788
Liabilities and Shareholders’ Equity
Accrued expenses and other liabilities	$	4,008	$	692
Subordinated debentures payable	72,167		72,167
Shareholders’ equity	888,127		749,929
Total liabilities and shareholders’ equity	$	964,302	$	822,788

Statements of Operations

Statements of Income	For the years ended December 31,
	2017			2016			2015
	(dollars in thousands)
Interest and dividends	$	1		$	1		$	1
Dividends from subsidiaries	52,586			55,510			49,917
Interest expense	(3,000		)	(2,635		)	(2,357		)
Other income	17			83			232
Operating expense	(4,767		)	(4,700		)	(4,989		)
Income (loss) before taxes and equity in undistributed (loss) earnings of subsidiaries	44,837			48,259			42,804
Applicable income tax benefits	2,557			2,515			2,528
Income before equity in undistributed (loss) earnings of subsidiaries	47,394			50,774			45,332
Equity in undistributed earnings (loss) of subsidiaries	7,771			8,816			4,811
Net income	$	55,165		$	59,590		$	50,143

Statements of Cash Flow

	For the years ended December 31,
Statements of Cash Flow	2017			2016			2015
	(dollars in thousands)
Operating Activities
Net income	$	55,165		$	59,590		$	50,143
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	322			355			493
Net (gains) losses on sales of assets	(3		)	—			240
(Increase) decrease in prepaid income taxes	(550		)	7,380			(6,993		)
Undistributed equity in subsidiaries	(7,771		)	(8,816		)	(4,811		)
Other net	8,767			7,759			10,753
Net cash provided by operating activities	55,930			66,268			49,825
Investing Activities
Net change in loans	2			3			2
Purchases of premises and equipment	(207		)	—			54
Proceeds from sale of other assets	3			(332		)	—
Proceeds from dissolution of subsidiary	0			27,017			—
Acquisition of affiliate, net of cash received	(250		)	—			—
Investment in subsidiaries	(37,690		)	(47,017		)	—
Net cash (used in) provided by investing activities	(38,142		)	(20,329		)	56
Financing Activities
Dividends paid	(30,513		)	(24,907		)	(25,089		)
Proceeds from reissuance of treasury stock	228			216			192
Purchase of treasury stock	(1,458		)	(864		)	(25,383		)
Net cash used in financing activities	(31,743		)	(25,555		)	(50,280		)
Net (decrease) increase in cash	(13,955		)	20,384			(399		)
Cash at beginning of year	30,387			10,003			10,402
Cash at end of year	$	16,432		$	30,387		$	10,003

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Statement of Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017 USD ($) county Segment	Dec. 31, 2016 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of counties in which entity provides services | county	15
Business segments | Segment	1
Equity investments	20.00%
Loans past due days	90 days
Excess impaired credits	$ 100,000
Other liabilities	$ 3,900,000
Software purchases and developed are capitalized and amortized on straight-line basis	7 years
Guaranteed Minimum Death Benefit [Member]
Summary Of Significant Accounting Policies [Line Items]
Other liabilities		$ 3,300,000

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Acquisition - Narrative (Details) $ in Thousands			12 Months Ended
	Apr. 03, 2017 USD ($) branch shares	Dec. 02, 2016 USD ($) branch	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired			$ (3,188)	$ (479,469)	$ 3,533
Goodwill, Acquired During Period			68,900
Costs related to the acquisition			10,213	3,173	$ 922
Goodwill			255,353	$ 186,500
FirstMerit Bank, NA, Branch Acquisition [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets		$ 122,766
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits		619,729
Goodwill, Acquired During Period		1,600
Total consideration received		(476,555)
Credit market adjustment of gross loans acquired		$ 105,600
Number of Stores | branch		13
Loans		$ 102,097
Goodwill		20,478
Business Combination, Acquired Receivables, Fair Value Adjustment		$ 3,530
DCB Financial Acquisition [Member]
Business Acquisition [Line Items]
Costs related to the acquisition			$ 10,198
DCB Financial Corp [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 21,232
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	8,356,882
Number of Full Service Branches | branch	9
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	$ 554,890
Business Combination, Acquired Receivables, Gross Contractual Amount	390,760
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits	484,366
Goodwill, Acquired During Period	70,600
Total consideration received	$ 132,044
Number of Limited Service Branches | branch	4
Loans	$ 383,083
Business Combination, Acquired Receivables, Fair Value Adjustment	$ 7,677

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Acquisition - Summary (Details) - USD ($) $ in Thousands			12 Months Ended
	Apr. 03, 2017	Dec. 02, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired			$ (3,188)	$ (479,469)	$ 3,533
Fair Value of Liabilities Assumed
Goodwill			255,353	$ 186,500
Goodwill, Acquired During Period			$ 68,900
FirstMerit Bank, NA, Branch Acquisition [Member]
Consideration Received
Cash received		$ (476,555)
Total consideration received		(476,555)
Fair Value of Assets Acquired
Cash and cash equivalents		2,914
Loans		102,097
Premises and other equipment		6,072
Core deposit intangible		11,330
Other assets		353
Total assets acquired		122,766
Fair Value of Liabilities Assumed
Deposits		619,729
Other Liabilities		70
Total liabilities assumed		619,799
Total Fair Value of Identifiable Net Assets		(497,033)
Goodwill		20,478
Goodwill, Acquired During Period		$ 1,600
DCB Financial Corp [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 21,232
Consideration Received
Cash received	132,044
Total consideration received	132,044
Fair Value of Assets Acquired
Cash and cash equivalents	24,420
Investment Securities	88,986
FHLB Stock	3,250
Loans	383,083
Premises and other equipment	12,113
Core deposit intangible	5,998
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Real Estate Owned	68
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Bank Owned Life Insurance	20,522
Other assets	16,450
Total assets acquired	554,890
Fair Value of Liabilities Assumed
Deposits	484,366
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Capital Lease Obligation	7,851
Other Liabilities	1,182
Total liabilities assumed	493,399
Total Fair Value of Identifiable Net Assets	61,491
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	110,812
Goodwill, Acquired During Period	$ 70,600

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Supplemental Comprehensive Income Disclosures - Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Supplemental Comprehensive Income Disclosures [Abstract]
Unrealized holding (losses) gains on securities arising during the period, Pretax Amount	$ 7,023	$ (6,304)	$ 2,798
Less: reclassification adjustment for (gains) losses on securities included in net income, Pretax Amount	(5,040)	(617)	153
Total Unrealized (Losses) Gains on Securities, before Tax	1,983	(6,921)	2,951
Unrealized holding gains on derivatives arising during the period, Pretax Amount	(901)	(479)	450
Reclassification adjustment for gains on derivatives included in net income, Pretax Amount	(119)	70	49
Total unrealized gains on derivatives, Pretax Amount	(782)	(549)	401
Unrealized holding gains on derivatives arising during the period, Tax (Expense) Benefit	315	168	(158)
Reclassification adjustment for gains on derivatives included in net income, Tax (Expense) Benefit	(42)	24	17
Total unrealized gains on derivatives, Tax (Expense) Benefit	273	192	(141)
Unrealized holding gains on derivatives arising during the period, Net of Tax Amount	(586)	(311)	292
Reclassification adjustment for gains on derivatives included in net income, Tax (Expense) Benefit	77	(46)	(32)
Total unrealized gains on derivatives, Tax (Expense) Benefit	(509)	(357)	260
Net (loss) gain, Pretax Amount	94	331	(102)
Total Unrealized Gains (Losses) for Postretirement Obligations, Before Tax	94	331	(102)
Total other comprehensive (loss) income, Pretax Amount	1,295	(7,139)	3,250
Unrealized holding (losses) gains on securities arising during the period, Tax (Expense) Benefit	(2,458)	2,206	(978)
Less: reclassification adjustment for (gains) losses on securities included in net income, Tax (Expense) Benefit	1,764	216	(54)
Total Unrealized (Losses) Gains on Securities, Tax (Expense) Benefit	(694)	2,422	(1,032)
Net (loss) gain, Tax (Expense) Benefit	(20)	(116)	36
Total Unrealized Gains (Losses) for Postretirement Obligations, Tax (Expense) Benefit	(20)	(116)	36
Total other comprehensive (loss) income, Tax (Expense) Benefit	(441)	2,498	(1,137)
Unrealized holding (losses) gains on securities arising during the period, Net of Tax Amount	4,565	(4,098)	1,820
Less: reclassification adjustment for (gains) losses on securities included in net income, Net of Tax Amount	(3,276)	(401)	99
Total Unrealized (Losses) Gains on Securities, Net of Tax	1,289	(4,499)	1,919
Net gain	74	215	(66)
Total Unrealized Gains (Losses) for Postretirement Obligations, Net of Tax	74	215	(66)
Total other comprehensive (loss) Income	$ 854	$ (4,641)	$ 2,113

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Supplemental Comprehensive Income Disclosures Supplemental Comprehensive Income Disclosures (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income [Line Items]
Balance at beginning of period	$ (7,027)	$ (2,386)	$ (4,499)
Other comprehensive income before reclassification adjustment	3,979	(4,409)	2,112
Amounts reclassified from accumulated other comprehensive income (loss)	(3,199)	(447)	67
Net gain	74	215	(66)
Net other comprehensive income during the period	854	(4,641)	2,113
Balance at end of period	(6,173)	(7,027)	(2,386)
Securities Available for Sale
Accumulated Other Comprehensive Income [Line Items]
Balance at beginning of period	(7,455)	(2,956)	(4,875)
Other comprehensive income before reclassification adjustment	4,565	(4,098)	1,820
Amounts reclassified from accumulated other comprehensive income (loss)	(3,276)	(401)	99
Net other comprehensive income during the period	1,289	(4,499)	1,919
Balance at end of period	(6,166)	(7,455)	(2,956)
Derivatives
Accumulated Other Comprehensive Income [Line Items]
Balance at beginning of period	203	560	300
Other comprehensive income before reclassification adjustment	(586)	(311)	292
Amounts reclassified from accumulated other comprehensive income (loss)	77	(46)	(32)
Net other comprehensive income during the period	(509)	(357)	260
Balance at end of period	(306)	203	560
Post-Retirement Obligation
Accumulated Other Comprehensive Income [Line Items]
Balance at beginning of period	225	10	76
Net gain	74	215	(66)
Net other comprehensive income during the period	74	215	(66)
Balance at end of period	$ 299	$ 225	$ 10

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Supplemental Cash Flow Disclosures - Non-cash Investing and Financing Activities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Supplemental Cash Flow Information [Abstract]
Real Estate Owned, Transfer to Real Estate Owned	$ 3,067	$ 4,824	$ 8,257
Cash paid during the year for:
Interest	21,552	19,208	15,818
Income taxes	27,902	19,950	8,331
Non-cash investing and financing activities:
Loans transferred to other real estate owned and repossessed assets	1,891	0	0
Fair value of loans transferred from held to maturity to available for sale	15,102	18,758	3,196
Gross (decrease) increase in market value adjustment to securities available for sale	1,983	(6,919)	2,949
Gross (decrease) increase in market value adjustment to derivatives	(783)	(549)	401
Investments committed to purchase, not settled	0	0	694
Noncash or Part Noncash Acquisition, Value of Assets Acquired	$ 37,070	$ (501,516)	$ 463
Other Significant Noncash Transaction, Consideration Received	245	437	0
Treasury stock reissued	$ 2,258	$ 0	$ 0
Other Significant Noncash Transaction, Value of Consideration Received	$ 0	$ 3,769	$ 0

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Earnings per Share - Composition of Weighted-Average Common Shares (Denominator) Used in Basic and Diluted Earnings Per Share (Detail) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Weighted Average Number of Shares, Deferred Compensation Plans	37,411	0	0
Weighted average common shares issued	111,809,880	105,563,455	105,563,455
Average treasury shares	(16,463,079)	(16,605,461)	(16,045,900)
Average unearned nonvested shares	(89,334)	(106,421)	(160,788)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share	95,220,056	88,851,573	89,356,767
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share	73,570	0	0
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share	95,331,037	88,851,573	89,356,767
Weighted Average Number Of Additional Shares Deferred Compensation Plan	37,411	0	0

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Earnings per Share - Common Stock Equivalents Not Included in Computation of Diluted Earnings Per Share (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, par value (in dollars per share)	$ 1	$ 1
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares	18,173	67,920	92,002
Minimum [Member] | Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, par value (in dollars per share)	$ 8.55	$ 8.38	$ 6.82
Maximum [Member] | Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, par value (in dollars per share)	$ 13.96	$ 13.96	$ 9.84

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Cash and Due from Banks - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Cash and Due from Banks [Abstract]
Cash or balances held with the Federal Reserve Bank	$ 10.3	$ 5.1

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Derivatives - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) Derivative	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Derivative [Line Items]
Number of participation agreements for interest rate swaps, participant | Derivative	36
Number of participation agreements for interest rate swaps, lead bank | Derivative	9
Derivative, Gain (Loss) on Derivative, Net	$ (473)	$ 219	$ (274)
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Number of interest rate swap contracts | Derivative	3
Derivative, notional amount	$ 150,000
Collateral Already Posted, Aggregate Fair Value	150,000
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, notional amount	150,000	200,000
Interest Rate Swap [Member] | Interest Income [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	452	1,627	2,049
Interest Rate Swap [Member] | Other Income [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	119	70	64
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, notional amount	10,077	4,749
Derivative, Underlying Asset Carrying Value	10,000	4,700
Derivative Liability, Fair Value, Gross Asset	10,100	4,700
Foreign Exchange Contract [Member] | Other Income [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	4	(5)	0
Forward Contracts [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, notional amount	17,000	0
Derivative, Underlying Asset Carrying Value	14,300
Derivative Liability, Fair Value, Gross Asset	14,700
Derivative Liability, Notional Amount	13,800
Forward Contracts [Member] | Other Income [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(19)	$ 0	$ 0
Three Year [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, notional amount	$ 35,000
Derivative, Term of Contract	3 years
Four Year [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, notional amount	$ 115,000
Derivative, Term of Contract	4 years

XML

Derivatives - Credit Value Adjustment Recorded Related to Notional Amount of Derivatives Outstanding (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Credit value adjustment	$ (791)	$ (317)
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, notional amount	401,304	345,102
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Derivative, notional amount	46,444	14,762
Not Designated as Hedging Instrument [Member] | Credit Default Swap, Buying Protection [Member]
Derivative [Line Items]
Derivative, notional amount	197,660	174,213
Not Designated as Hedging Instrument [Member] | Credit Default Swap, Selling Protection [Member]
Derivative [Line Items]
Derivative, Sold Protection Notional Amount	(46,170)	(40,281)
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Fair value adjustment	459	(443)
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, notional amount	150,000	200,000
Designated as Hedging Instrument [Member] | Forward Contracts [Member]
Derivative [Line Items]
Derivative, notional amount	17,000	0
Fair value adjustment	19	0
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivative [Line Items]
Derivative, notional amount	10,077	4,749
Fair value adjustment	$ (70)	$ (8)

XML

Derivatives - Schedule of Change in Fair Value of Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ (473)	$ 219	$ (274)
Other Income [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(473)	219	(274)
Forward Contracts [Member] | Other Income [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(19)	0	0
Interest Rate Swap [Member] | Other Income [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	119	70	64
Interest Rate Swap [Member] | Interest Income [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	452	1,627	2,049
Foreign Exchange Contract [Member] | Other Income [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 4	$ (5)	$ 0

XML

Investment Securities - Analysis of Amortized Cost and Estimated Fair Values of Securities Available for Sale (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Investment Securities [Line Items]
Amortized Cost	$ 740,846	$ 790,082
Gross Unrealized Gains	4,854	7,076
Gross Unrealized Losses	(14,342)	(18,546)
Estimated Fair Value of Available for Sale	731,358	778,612
US States and Political Subdivisions Debt Securities [Member]
Investment Securities [Line Items]
Amortized Cost	27,083	27,075
Gross Unrealized Gains	327	195
Gross Unrealized Losses	0	(41)
Estimated Fair Value of Available for Sale	27,410	27,229
Corporate Securities [Member]
Investment Securities [Line Items]
Amortized Cost	15,907	5,903
Gross Unrealized Gains	590	416
Gross Unrealized Losses	(4)	0
Estimated Fair Value of Available for Sale	16,493	6,319
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Investment Securities [Line Items]
Amortized Cost	27,499	39,989
Gross Unrealized Gains	526	427
Gross Unrealized Losses	(4,379)	(7,124)
Estimated Fair Value of Available for Sale	23,646	33,292
Debt Securities [Member]
Investment Securities [Line Items]
Amortized Cost	739,176	788,412
Gross Unrealized Gains	4,854	7,076
Gross Unrealized Losses	(14,342)	(18,546)
Estimated Fair Value of Available for Sale	729,688	776,942
Mortgage - Backed Securities - Residential [Member] | US Government Agencies Debt Securities [Member]
Investment Securities [Line Items]
Amortized Cost	10,556	15,143
Gross Unrealized Gains	789	1,481
Gross Unrealized Losses	(7)	(7)
Estimated Fair Value of Available for Sale	11,338	16,617
Mortgage - Backed Securities - Residential [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member]
Investment Securities [Line Items]
Amortized Cost	632,422	683,601
Gross Unrealized Gains	2,622	4,557
Gross Unrealized Losses	(9,489)	(11,305)
Estimated Fair Value of Available for Sale	625,555	676,853
Mortgage - Backed Securities - Commercial [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member]
Investment Securities [Line Items]
Amortized Cost	0	1
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value of Available for Sale	0	1
Other Government - Sponsored Enterprises [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member]
Investment Securities [Line Items]
Amortized Cost	1,098	16,700
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	(69)
Estimated Fair Value of Available for Sale	1,097	16,631
Equity Securities [Member]
Investment Securities [Line Items]
Amortized Cost	1,670	1,670
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value of Available for Sale	1,670	1,670
US Government Agencies Debt Securities [Member] | Mortgage - Backed Securities - Commercial [Member]
Investment Securities [Line Items]
Amortized Cost	24,611	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(462)	0
Estimated Fair Value of Available for Sale	$ 24,149	$ 0

XML

Investment Securities - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Maturity of contract		less than one year
Approximate year of maturity		30 years
Gross Unrealized Gains (Losses)		$ 14,342	$ 18,546
Securities available for sale		731,358	778,612
Amortized Cost		740,846	790,082
Available-for-sale securities pledged as collateral		569,000	445,800
Held-to-maturity securities pledged as collateral		338,300	119,200
Sales [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross Realized Losses		359	305	$ 0
Available-for-sale Securities, Gross Realized Losses		316	277	284
Sales [Member] | US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost				75,000
Calls And Maturities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Gains		5,057	589	131
Available-for-sale Securities, Gross Realized Losses		60	0	$ 0
Calls And Maturities [Member] | Pre TSL VII [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross Realized Losses	$ 712		589
Gross Gains		700
Amortized Cost			3,119
Calls And Maturities [Member] | Pre TSL XIII [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Gross Realized Losses		$ 4,329
Amortized Cost			$ 13,171

XML

Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities Available for Sale (Detail) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Investment Securities [Line Items]
Due within 1 year, Amortized Cost		$ 1,098
Due after 1 but within 5 years, Amortized Cost		13,989
Due after 5 but within 10 years, Amortized Cost		27,083
Due after 10 years, Amortized Cost		29,417
Debt securities gross, Amortized Cost		71,587
Amortized Cost		740,846	$ 790,082
Total debt securities, Amortized Cost		739,176
Due within 1 year, Estimated Fair Value		1,097
Due after 1 but within 5 years, Estimated Fair Value		14,020
Due after 5 but within 10 years, Estimated Fair Value		27,410
Due after 10 years, Estimated Fair Value		26,119
Debt securities gross, Estimated Fair Value		68,646
Estimated Fair Value of Available for Sale		731,358	$ 778,612
Total debt securities, Estimated Fair Value		729,688
Mortgage-Backed Securities [Member]
Investment Securities [Line Items]
Amortized Cost	[1]	667,589
Estimated Fair Value of Available for Sale	[1]	$ 661,042

[1] Mortgage Backed Securities include an amortized cost of $35.2 million and a fair value of $35.5 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $632.4 million and a fair value of $625.6 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.

XML

Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities Available for Sale, Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investment Securities [Line Items]
Amortized Cost	$ 740,846	$ 790,082
Estimated Fair Value of Available for Sale	731,358	$ 778,612
US Government Agencies Debt Securities [Member]
Investment Securities [Line Items]
Amortized Cost	35,200
Estimated Fair Value of Available for Sale	35,500
Obligations of U.S. Government-Sponsored Enterprises [Member]
Investment Securities [Line Items]
Amortized Cost	632,400
Estimated Fair Value of Available for Sale	$ 625,600

XML

Investment Securities - Proceeds from Sale, Gross Gains (Losses) Realized on Sales, Maturities and Other-Than-Temporary Impairment Charges Related to Securities Available for Sale (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Gain (Loss) on Investments [Line Items]
Proceeds from sale	$ 143,660	$ 55,744	$ 88,054
Maturities, calls and impairment:
Net gains (losses) and impairment	5,040	617	(153)
Calls And Maturities [Member]
Sales Transactions:
Gross losses	(60)	0	0
Maturities, calls and impairment:
Gross gains	5,057	589	131
Other-than-temporary impairment	0	0	0
Total gain (losses) maturities and impairment	4,997	589	131
Sales [Member]
Sales Transactions:
Available-for-sale Securities, Gross Realized Losses	359	305	0
Gross losses	(316)	(277)	(284)
Total gain (losses) from sales transactions	$ 43	$ 28	$ (284)

XML

Investment Securities - Amortized Cost and Fair Values of Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 422,096	$ 372,513
Gross Unrealized Gains	345	60
Gross Unrealized Losses	(4,192)	(3,955)
Estimated Fair Value	418,249	368,618
Obligations of U.S. Government-Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	40,540	38,667
Gross Unrealized Gains	335	55
Gross Unrealized Losses	(161)	(721)
Estimated Fair Value	40,714	38,001
Foreign Government Debt Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	200	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	200	0
Mortgage - Backed Securities - Residential [Member] | US Government Agencies Debt Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	3,925	4,297
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(14)	(4)
Estimated Fair Value	3,911	4,293
Mortgage - Backed Securities - Residential [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	305,126	280,430
Gross Unrealized Gains	10	5
Gross Unrealized Losses	(2,552)	(2,527)
Estimated Fair Value	302,584	277,908
Mortgage - Backed Securities - Commercial [Member] | US Government Agencies Debt Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	58,249	34,444
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1,394)	(561)
Estimated Fair Value	56,855	33,883
Mortgage - Backed Securities - Commercial [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	14,056	14,675
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(71)	(142)
Estimated Fair Value	$ 13,985	$ 14,533

XML

Investment Securities - Schedule of Debt Securities Expected Maturity (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Amortized Cost
Due within 1 year		$ 87
Due after 1 but within 5 years		3,663
Due after 5 but within 10 years		35,361
Due after 10 years		1,629
Amortized Cost		40,740
Held-to-maturity Securities		422,096	$ 372,513
Estimated Fair Value
Due within 1 year		87
Due after 1 but within 5 years		3,660
Due after 5 but within 10 years		35,534
Due after 10 years		1,633
Estimated Fair Value		40,914
Securities held to maturity, fair value		418,249	$ 368,618
Mortgage-Backed Securities [Member]
Amortized Cost
Held-to-maturity Securities	[1]	381,356
Estimated Fair Value
Securities held to maturity, fair value	[1]	377,335
Mortgage-Backed Securities [Member] | US Government Agencies Debt Securities [Member]
Amortized Cost
Held-to-maturity Securities		62,200
Estimated Fair Value
Securities held to maturity, fair value		60,800
Mortgage-Backed Securities [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Amortized Cost
Held-to-maturity Securities		319,200
Estimated Fair Value
Securities held to maturity, fair value		$ 316,600

[1] Mortgage Backed Securities include an amortized cost of $62.2 million and a fair value of $60.8 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $319.2 million and a fair value of $316.6 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.

XML

Impairment of Investment Securities - Additional Information (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($)	Dec. 31, 2017 USD ($) Security Bank	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Corporate/Mortgage-Backed Securities, Amortized cost		$ 740,846,000	$ 790,082,000
Estimated Fair Value of Available for Sale		$ 731,358,000	778,612,000
Number of banks and other financial institutions comprising the security | Bank		206
Number Of Pooled Securities with No Senior Class | Security		2
Number of Securities with No Excess Subordination | Security		2
Number of Securities with Excess Subordination | Security		5
Collateral issued by financial institutions		$ 15,000,000,000
Coupon interest rate		7.00%
Prepayment rate		5.00%
Estimate of future cash flows prepayment percentage in year three		40.00%
Estimate of future cash flows prepayment percentage thereafter		2.00%
Fair Value Input Coupon Rates		10.00%
Probability of default		100.00%
Projected recovery rate		0.00%
Probability percentage assigned to default bank subject to market indicators		10.00%
Probability percentage assigned to default bank		100.00%
Other than-temporary impairment charge		$ 3,958,000	6,671,000	$ 218,000
Other investments		$ 29,837,000	36,498,000
Minimum [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Subordinated tranches range		7.00%
Total principal amount of the respective securities		5.00%
Excess subordination as a percentage of current performing collateral		2.00%
Collateral issued by financial institutions		$ 15,000,000,000
Probabilities for performing collateral range		0.33%
Excess percent value of future cash flows over current book value		18.00%
Over Fifteen Million [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Prepayment rate		100.00%
Maximum [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Subordinated tranches range		35.00%
Excess subordination as a percentage of current performing collateral		72.00%
Collateral issued by financial institutions		$ 2,000,000,000
Probabilities for performing collateral range		50.00%
Excess percent value of future cash flows over current book value		104.00%
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Total unrealized losses		24.00%
Corporate/Mortgage-Backed Securities, Amortized cost		$ 27,499,000	39,989,000
Estimated Fair Value of Available for Sale		23,646,000	33,292,000
Other than-temporary impairment charge		$ 0	0	$ 0
Obligations of U.S. Government-Sponsored Enterprises [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Total unrealized losses		65.00%
Corporate Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Corporate/Mortgage-Backed Securities, Amortized cost		$ 15,907,000	5,903,000
Estimated Fair Value of Available for Sale		$ 16,493,000	6,319,000
US States and Political Subdivisions Debt Securities [Member] | Other Government - Sponsored Enterprises [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Total unrealized losses		10.00%
Debt Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Number of securities in an unrealized loss positions | Security		98
Estimated Fair Value of Available for Sale		$ 729,688,000	776,942,000
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage - Backed Securities - Residential [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Number of securities in an unrealized loss positions		0
Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Number of securities in an unrealized loss positions | Security		0
Corporate/Mortgage-Backed Securities, Amortized cost		$ 1,670,000	1,670,000
Estimated Fair Value of Available for Sale		1,670,000	1,670,000
Corporate Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Estimated Fair Value of Available for Sale		$ 16,493,000	6,319,000
Trust Preferred Collateralized Debt Obligations [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Percentage of Current Performing Collateral		0.00%
Mezzanine [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Corporate/Mortgage-Backed Securities, Amortized cost		$ 27,499,000
Estimated Fair Value of Available for Sale		23,646,000
Pre Tsl Xiii [Member] | Calls And Maturities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale Securities, Gross Realized Losses		$ 4,329,000
Corporate/Mortgage-Backed Securities, Amortized cost			13,171,000
Pre TSL VII [Member] | Calls And Maturities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale Securities, Gross Realized Losses	$ 712,000		589,000
Corporate/Mortgage-Backed Securities, Amortized cost			$ 3,119,000

XML

Impairment of Investment Securities - Schedule of Unrealized Losses and Estimated Fair Values (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Schedule Of Unrealized Losses On Securities [Line Items]
Estimated Fair Value, Less Than 12 Months	$ 431,247	$ 773,932
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses	(3,386)	(13,175)
Estimated Fair Value, 12 Months or More	456,539	85,152
SecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLosses	(15,148)	(9,326)
Total Estimated Fair Value	887,786	859,084
Total Gross Unrealized Losses	(18,534)	(22,501)
Corporate Securities [Member]
Schedule Of Unrealized Losses On Securities [Line Items]
Estimated Fair Value, Less Than 12 Months	3,993
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses	(4)
Estimated Fair Value, 12 Months or More	0
SecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLosses	0
Total Estimated Fair Value	3,993
Total Gross Unrealized Losses	(4)
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Schedule Of Unrealized Losses On Securities [Line Items]
Estimated Fair Value, Less Than 12 Months	0	0
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses	0	0
Estimated Fair Value, 12 Months or More	19,120	28,952
SecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLosses	(4,379)	(7,124)
Total Estimated Fair Value	19,120	28,952
Total Gross Unrealized Losses	(4,379)	(7,124)
Obligations of U.S. Government [Member] | Mortgage - Backed Securities - Residential [Member]
Schedule Of Unrealized Losses On Securities [Line Items]
Estimated Fair Value, Less Than 12 Months	5,584	4,898
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses	(21)	(11)
Estimated Fair Value, 12 Months or More	0	0
SecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLosses	0	0
Total Estimated Fair Value	5,584	4,898
Total Gross Unrealized Losses	(21)	(11)
Obligations of U.S. Government [Member] | Mortgage - Backed Securities - Commercial [Member]
Schedule Of Unrealized Losses On Securities [Line Items]
Estimated Fair Value, Less Than 12 Months	48,322	33,883
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses	(962)	(561)
Estimated Fair Value, 12 Months or More	32,683	0
SecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLosses	(894)	0
Total Estimated Fair Value	81,005	33,883
Total Gross Unrealized Losses	(1,856)	(561)
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage - Backed Securities - Residential [Member]
Schedule Of Unrealized Losses On Securities [Line Items]
Estimated Fair Value, Less Than 12 Months	351,222	670,708
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses	(2,295)	(11,630)
Estimated Fair Value, 12 Months or More	400,984	56,200
SecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLosses	(9,746)	(2,202)
Total Estimated Fair Value	752,206	726,908
Total Gross Unrealized Losses	(12,041)	(13,832)
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage - Backed Securities - Commercial [Member]
Schedule Of Unrealized Losses On Securities [Line Items]
Estimated Fair Value, Less Than 12 Months	13,985	14,534
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses	(71)	(142)
Estimated Fair Value, 12 Months or More	0	0
SecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLosses	0	0
Total Estimated Fair Value	13,985	14,534
Total Gross Unrealized Losses	(71)	(142)
Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member]
Schedule Of Unrealized Losses On Securities [Line Items]
Estimated Fair Value, Less Than 12 Months	997	16,632
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses	(1)	(69)
Estimated Fair Value, 12 Months or More	99	0
SecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLosses	0	0
Total Estimated Fair Value	1,096	16,632
Total Gross Unrealized Losses	(1)	(69)
US States and Political Subdivisions Debt Securities [Member] | Other Government - Sponsored Enterprises [Member]
Schedule Of Unrealized Losses On Securities [Line Items]
Estimated Fair Value, Less Than 12 Months	7,144	33,277
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses	(32)	(762)
Estimated Fair Value, 12 Months or More	3,653	0
SecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLosses	(129)	0
Total Estimated Fair Value	10,797	33,277
Total Gross Unrealized Losses	$ (161)	$ (762)

XML

Impairment of Investment Securities - Pooled Trust Preferred Collateralized Debt Obligations (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) Bank	Dec. 31, 2016 USD ($)
Impairment Of Investment Securities [Line Items]
Amortized Cost	$ 740,846	$ 790,082
Estimated Fair Value of Available for Sale	731,358	$ 778,612
Mezzanine [Member]
Impairment Of Investment Securities [Line Items]
Amortized Cost	27,499
Estimated Fair Value of Available for Sale	23,646
Unrealized Gain (Loss)	(3,853)
Mezzanine [Member] | Pre TSL IV [Member]
Impairment Of Investment Securities [Line Items]
Amortized Cost	1,817
Estimated Fair Value of Available for Sale	1,405
Unrealized Gain (Loss)	$ (412)
Debt Instrument, Credit Rating	Ba1/BB
Number of Banks | Bank	6
Deferrals and Defaults as a % of Current Collateral	18.05%
Excess Subordination as a % of Current Performing Collateral	72.13%
Mezzanine [Member] | Pre TSL VIII [Member]
Impairment Of Investment Securities [Line Items]
Amortized Cost	$ 2,043
Estimated Fair Value of Available for Sale	2,228
Unrealized Gain (Loss)	$ 185
Debt Instrument, Credit Rating	C/C
Number of Banks | Bank	26
Deferrals and Defaults as a % of Current Collateral	38.52%
Excess Subordination as a % of Current Performing Collateral	0.00%
Mezzanine [Member] | Pre TSL IX [Member]
Impairment Of Investment Securities [Line Items]
Amortized Cost	$ 2,448
Estimated Fair Value of Available for Sale	2,052
Unrealized Gain (Loss)	$ (396)
Debt Instrument, Credit Rating	B1/C
Number of Banks | Bank	37
Deferrals and Defaults as a % of Current Collateral	27.83%
Excess Subordination as a % of Current Performing Collateral	19.46%
Mezzanine [Member] | Pre TSL X [Member]
Impairment Of Investment Securities [Line Items]
Amortized Cost	$ 1,863
Estimated Fair Value of Available for Sale	2,125
Unrealized Gain (Loss)	$ 262
Debt Instrument, Credit Rating	Caa1/C
Number of Banks | Bank	41
Deferrals and Defaults as a % of Current Collateral	27.93%
Excess Subordination as a % of Current Performing Collateral	1.62%
Mezzanine [Member] | Pre TSL XII [Member]
Impairment Of Investment Securities [Line Items]
Amortized Cost	$ 6,097
Estimated Fair Value of Available for Sale	5,209
Unrealized Gain (Loss)	$ (888)
Debt Instrument, Credit Rating	B3/C
Number of Banks | Bank	63
Deferrals and Defaults as a % of Current Collateral	23.35%
Excess Subordination as a % of Current Performing Collateral	0.00%
Mezzanine [Member] | Pre TSL XIV [Member]
Impairment Of Investment Securities [Line Items]
Amortized Cost	$ 13,136
Estimated Fair Value of Available for Sale	10,453
Unrealized Gain (Loss)	$ (2,683)
Debt Instrument, Credit Rating	Ba2/CCC
Number of Banks | Bank	49
Deferrals and Defaults as a % of Current Collateral	12.95%
Excess Subordination as a % of Current Performing Collateral	39.26%
Mezzanine [Member] | MMCap I [Member]
Impairment Of Investment Securities [Line Items]
Amortized Cost	$ 95
Estimated Fair Value of Available for Sale	174
Unrealized Gain (Loss)	$ 79
Debt Instrument, Credit Rating	Ca/C
Number of Banks | Bank	7
Deferrals and Defaults as a % of Current Collateral	69.35%
Excess Subordination as a % of Current Performing Collateral	69.99%

XML

Impairment of Investment Securities - Cumulative Roll Forward of Credit Losses Recognized in Earnings for Debt Securities Held and Not Intended to be Sold (Detail) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016		Dec. 31, 2015
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance, beginning	[1]	$ 17,056	$ 24,851		$ 26,246
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized		0	0		0
Additional credit losses on debt securities for which other-than- temporary impairment was previously recognized		0	0		0
Increases in cash flows expected to be collected, recognized over the remaining life of the security	[2]	(890)	(1,124)		(1,177)
Reduction for debt securities called during the period		(3,958)	(6,671)		(218)
Balance, ending		$ 12,208	$ 17,056	[1]	$ 24,851	[1]

[1] The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

[2] Represents the increase in cash flows recognized either as principal payments or interest income during the period.

XML

Loans and Allowance for Credit Losses - Outstanding Balances of Loan (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 5,407,376	$ 4,879,347	$ 4,683,750
Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,163,383	1,139,547
Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	248,868	219,621
Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,426,370	1,229,192
Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,019,096	1,742,210
Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	549,659	548,777
Originated Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	5,007,361	4,778,471
Originated Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,122,741	1,131,148
Originated Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	242,905	217,840
Originated Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,206,119	1,165,851
Originated Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,892,185	1,717,043
Originated Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	543,411	546,589
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	400,015	100,876
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	40,642	8,399
Acquired Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	5,963	1,781
Acquired Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	220,251	63,341
Acquired Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	126,911	25,167
Acquired Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 6,248	$ 2,188

XML

Loans and Allowance for Credit Losses - Credit Risk Profile by Creditworthiness (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Originated Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 5,007,361	$ 4,778,471
Originated Loans [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	4,896,832	4,646,456
Originated Loans [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	41,518	41,181
Originated Loans [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	64,605	90,834
Originated Loans [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	4,406	0
Originated Loans [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	110,529	132,015
Originated Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,122,741	1,131,148
Originated Loans [Member] | Commercial, financial, agricultural and other [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,061,147	1,038,844
Originated Loans [Member] | Commercial, financial, agricultural and other [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	26,757	27,387
Originated Loans [Member] | Commercial, financial, agricultural and other [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	30,431	64,917
Originated Loans [Member] | Commercial, financial, agricultural and other [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	4,406	0
Originated Loans [Member] | Commercial, financial, agricultural and other [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	61,594	92,304
Originated Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	242,905	217,840
Originated Loans [Member] | Real Estate Construction [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	242,905	217,565
Originated Loans [Member] | Real Estate Construction [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	275
Originated Loans [Member] | Real Estate Construction [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Originated Loans [Member] | Real Estate Construction [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Originated Loans [Member] | Real Estate Construction [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	275
Originated Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,206,119	1,165,851
Originated Loans [Member] | Residential real estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,194,352	1,152,511
Originated Loans [Member] | Residential real estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,435	5,923
Originated Loans [Member] | Residential real estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	10,332	7,417
Originated Loans [Member] | Residential real estate [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Originated Loans [Member] | Residential real estate [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	11,767	13,340
Originated Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,892,185	1,717,043
Originated Loans [Member] | Commercial real estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,855,253	1,691,220
Originated Loans [Member] | Commercial real estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	13,326	7,596
Originated Loans [Member] | Commercial real estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	23,606	18,227
Originated Loans [Member] | Commercial real estate [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Originated Loans [Member] | Commercial real estate [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	36,932	25,823
Originated Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	543,411	546,589
Originated Loans [Member] | Loans To Individuals [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	543,175	546,316
Originated Loans [Member] | Loans To Individuals [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Originated Loans [Member] | Loans To Individuals [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	236	273
Originated Loans [Member] | Loans To Individuals [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Originated Loans [Member] | Loans To Individuals [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	236	273
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	400,015	100,876
Acquired Loans [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	386,127	98,519
Acquired Loans [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	9,882	486
Acquired Loans [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	4,006	1,871
Acquired Loans [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	13,888	2,357
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	40,642	8,399
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	34,573	7,591
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	5,567	486
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	502	322
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	6,069	808
Acquired Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	5,963	1,781
Acquired Loans [Member] | Real Estate Construction [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	5,963	1,781
Acquired Loans [Member] | Real Estate Construction [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Real Estate Construction [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Real Estate Construction [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Real Estate Construction [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	220,251	63,341
Acquired Loans [Member] | Residential real estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	217,824	62,919
Acquired Loans [Member] | Residential real estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	798	0
Acquired Loans [Member] | Residential real estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,629	422
Acquired Loans [Member] | Residential real estate [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Residential real estate [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	2,427	422
Acquired Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	126,911	25,167
Acquired Loans [Member] | Commercial real estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	121,536	24,043
Acquired Loans [Member] | Commercial real estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	3,517	0
Acquired Loans [Member] | Commercial real estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,858	1,124
Acquired Loans [Member] | Commercial real estate [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Commercial real estate [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	5,375	1,124
Acquired Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	6,248	2,188
Acquired Loans [Member] | Loans To Individuals [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	6,231	2,185
Acquired Loans [Member] | Loans To Individuals [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Loans To Individuals [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	17	3
Acquired Loans [Member] | Loans To Individuals [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Loans To Individuals [Member] | Total Non-Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 17	$ 3

XML

Loans and Allowance for Credit Losses - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017 USD ($) Contract	Dec. 31, 2016 USD ($) Contract	Dec. 31, 2015 USD ($) Contract
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit losses	$ 5,087,000	$ 18,480,000	$ 14,948,000
Charge-offs			$ 18,868,000
Number of loans modified | Contract	41	65	61
Total amount of loan modified	$ 8,274,000	$ 10,275,000	$ 10,956,000
Off balance sheet reserve to nonperforming loans		12,000
Loans held for sale	14,850,000	7,052,000
Total gains or losses included in earnings	4,329,000	589,000
Loans with modification to rate and payment due to amortization	$ 300,000	6,600,000	$ 3,700,000
Minimum days required for conversion of trouble debt to be in default	90 days
Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unfunded commitments related to nonperforming loans	$ 2,400,000	1,779,000
Consumer Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non Accrual Status Of Loans After Number Of Days Past Due	150 days
Nonaccrual Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain (loss) on sale of impaired loans	$ 21,000	$ 0
Reserve for Off-balance Sheet Activities [Member] | Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Off balance sheet reserve to nonperforming loans	$ 200,000

XML

Loans and Allowance for Credit Losses - Age Analysis of Past Due Loans by Segment (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 5,407,376	$ 4,879,347	$ 4,683,750
Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,163,383	1,139,547
Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	248,868	219,621
Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,426,370	1,229,192
Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,019,096	1,742,210
Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	549,659	548,777
Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,163,383	1,139,547	1,150,906
Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	248,868	219,621	220,736
Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,426,370	1,229,192	1,224,465
Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,019,096	1,742,210	1,479,000
Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	549,659	548,777	$ 608,643
Originated Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	41,362	40,497
Current	4,965,999	4,737,974
Loans	5,007,361	4,778,471
Originated Loans [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	19,220	20,554
Current	1,103,521	1,110,594
Loans	1,122,741	1,131,148
Originated Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	199	183
Current	242,706	217,657
Loans	242,905	217,840
Originated Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	12,944	12,009
Current	1,193,175	1,153,842
Loans	1,206,119	1,165,851
Originated Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	5,472	4,092
Current	1,886,713	1,712,951
Loans	1,892,185	1,717,043
Originated Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	3,527	3,659
Current	539,884	542,930
Loans	543,411	546,589
Originated Loans [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,122,741	1,131,148
Originated Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	242,905	217,840
Originated Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,206,119	1,165,851
Originated Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,892,185	1,717,043
Originated Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	543,411	546,589
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	9,292	8,601
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	378	2,380
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	199	183
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	4,618	4,133
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	2,198	265
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,899	1,640
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,883	2,363
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	61	171
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,025	1,089
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	28	327
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	769	776
Originated Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,745	2,097
Originated Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	40	75
Originated Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Originated Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,076	995
Originated Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	6	57
Originated Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	623	970
Originated Loans [Member] | Nonaccrual Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	28,442	27,436
Originated Loans [Member] | Nonaccrual Commercial Loans [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	18,741	17,928
Originated Loans [Member] | Nonaccrual Commercial Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Originated Loans [Member] | Nonaccrual Commercial Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	6,225	5,792
Originated Loans [Member] | Nonaccrual Commercial Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	3,240	3,443
Originated Loans [Member] | Nonaccrual Commercial Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	236	273
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	2,570	1,302
Current	397,445	99,574
Loans	400,015	100,876
Acquired Loans [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	449	486
Current	40,193	7,913
Loans	40,642	8,399
Acquired Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	0	0
Current	5,963	1,781
Loans	5,963	1,781
Acquired Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	945	643
Current	219,306	62,698
Loans	220,251	63,341
Acquired Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	1,077	162
Current	125,834	25,005
Loans	126,911	25,167
Acquired Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	99	11
Current	6,149	2,177
Loans	6,248	2,188
Acquired Loans [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	40,642	8,399
Acquired Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	5,963	1,781
Acquired Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	220,251	63,341
Acquired Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	126,911	25,167
Acquired Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	6,248	2,188
Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	190	635
Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	6	486
Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	148	148
Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	36	1
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	36	46
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	7	0
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	9	39
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	20	7
Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	109	34
Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	83	34
Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	26	0
Acquired Loans [Member] | Nonaccrual Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	2,235	587
Acquired Loans [Member] | Nonaccrual Commercial Loans [Member] | Commercial Financial Agricultural And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	436	0
Acquired Loans [Member] | Nonaccrual Commercial Loans [Member] | Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Acquired Loans [Member] | Nonaccrual Commercial Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	705	422
Acquired Loans [Member] | Nonaccrual Commercial Loans [Member] | Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,077	162
Acquired Loans [Member] | Nonaccrual Commercial Loans [Member] | Loans To Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 17	$ 3

XML

Loans and Allowance for Credit Losses - Recorded Investment and Unpaid Principal Balance for Impaired Loans with Associated Allowance (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			$ 45,458
Interest Income Recognized			615
Commercial, financial, agricultural and other with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			17,692
Interest Income Recognized			216
Real estate construction with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			95
Interest Income Recognized			0
Residential real estate with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			10,635
Interest Income Recognized			172
Commercial real estate with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			7,890
Interest Income Recognized			90
Loans to individuals with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			338
Interest Income Recognized			4
Subtotal with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			36,650
Interest Income Recognized			482
Commercial, financial, agricultural and other With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			7,731
Interest Income Recognized			129
Real estate construction with an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			0
Interest Income Recognized			0
Residential real estate With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			403
Interest Income Recognized			0
Commercial real estate With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			674
Interest Income Recognized			4
Loans to individuals With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			0
Interest Income Recognized			0
Subtotal With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment			8,808
Interest Income Recognized			$ 133
Originated Loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 39,951	$ 41,226
Unpaid Principal Balance	53,021	56,296
Related Allowance	3,713	3,128
Average Recorded Investment	38,171	55,915
Interest Income Recognized	1,451	1,245
Originated Loans [Member] | Commercial, financial, agricultural and other with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	5,548	9,549
Unpaid Principal Balance	12,153	15,369
Average Recorded Investment	10,282	23,146
Interest Income Recognized	394	576
Originated Loans [Member] | Real estate construction with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	4
Interest Income Recognized	0	44
Originated Loans [Member] | Residential real estate with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	10,625	10,873
Unpaid Principal Balance	12,470	13,004
Average Recorded Investment	11,366	10,957
Interest Income Recognized	355	312
Originated Loans [Member] | Commercial real estate with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	5,155	5,765
Unpaid Principal Balance	5,489	6,905
Average Recorded Investment	6,469	6,718
Interest Income Recognized	583	170
Originated Loans [Member] | Loans to individuals with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	347	382
Unpaid Principal Balance	383	507
Average Recorded Investment	353	409
Interest Income Recognized	19	15
Originated Loans [Member] | Subtotal with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	21,675	26,569
Unpaid Principal Balance	30,495	35,785
Average Recorded Investment	28,470	41,234
Interest Income Recognized	1,351	1,117
Originated Loans [Member] | Commercial, financial, agricultural and other With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	16,866	13,423
Unpaid Principal Balance	21,094	19,226
Related Allowance	3,478	2,530
Average Recorded Investment	9,391	13,885
Interest Income Recognized	96	99
Originated Loans [Member] | Real estate construction with an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Originated Loans [Member] | Residential real estate With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	456	424
Unpaid Principal Balance	478	475
Related Allowance	107	164
Average Recorded Investment	167	241
Interest Income Recognized	0	4
Originated Loans [Member] | Commercial real estate With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	954	810
Unpaid Principal Balance	954	810
Related Allowance	128	434
Average Recorded Investment	143	555
Interest Income Recognized	4	25
Originated Loans [Member] | Loans to individuals With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Originated Loans [Member] | Subtotal With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	18,276	14,657
Unpaid Principal Balance	22,526	20,511
Related Allowance	3,713	3,128
Average Recorded Investment	9,701	14,681
Interest Income Recognized	100	128
Acquired Loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	2,289	587
Unpaid Principal Balance	3,545	661
Related Allowance	33	16
Average Recorded Investment	3,406	587
Interest Income Recognized	0	0
Acquired Loans [Member] | Commercial, financial, agricultural and other with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	436	0
Unpaid Principal Balance	449	0
Average Recorded Investment	476	0
Interest Income Recognized	0	0
Acquired Loans [Member] | Real estate construction with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	25	0
Interest Income Recognized	0	0
Acquired Loans [Member] | Residential real estate with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	666	406
Unpaid Principal Balance	965	480
Average Recorded Investment	535	406
Interest Income Recognized	0	0
Acquired Loans [Member] | Commercial real estate with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	940	162
Unpaid Principal Balance	1,842	162
Average Recorded Investment	2,135	162
Interest Income Recognized	0	0
Acquired Loans [Member] | Loans to individuals with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	17	3
Unpaid Principal Balance	17	3
Average Recorded Investment	6	3
Interest Income Recognized	0	0
Acquired Loans [Member] | Subtotal with no related allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	2,059	571
Unpaid Principal Balance	3,273	645
Average Recorded Investment	3,177	571
Interest Income Recognized	0	0
Acquired Loans [Member] | Commercial, financial, agricultural and other With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Acquired Loans [Member] | Real estate construction with an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Acquired Loans [Member] | Residential real estate With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	93	16
Unpaid Principal Balance	122	16
Related Allowance	4	16
Average Recorded Investment	74	16
Interest Income Recognized	0	0
Acquired Loans [Member] | Commercial real estate With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	137	0
Unpaid Principal Balance	150	0
Related Allowance	29	0
Average Recorded Investment	155	0
Interest Income Recognized	0	0
Acquired Loans [Member] | Loans to individuals With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Acquired Loans [Member] | Subtotal With an allowance recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	230	16
Unpaid Principal Balance	272	16
Related Allowance	33	16
Average Recorded Investment	229	16
Interest Income Recognized	$ 0	$ 0

XML

Loans and Allowance for Credit Losses - Troubled Debt Restructured Loans and Commitments (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loans and Leases Receivable Disclosure [Abstract]
Accrual status	$ 11,563	$ 13,790	$ 14,139
Nonaccrual status	11,222	11,569	12,360
Total	22,785	25,359	26,499
Letters of Credit Outstanding, Amount	60	0	0
Unused lines of credit	$ 54	$ 358	$ 3,252

XML

Loans and Allowance for Credit Losses - Troubled Debt Restructurings Identified During Period (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) Contract	Dec. 31, 2016 USD ($) Contract	Dec. 31, 2015 USD ($) Contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	41	65	61
Extend Maturity	$ 7,081	$ 1,521	$ 1,754
Modify Rate	2,095	6,614	3,658
Modify Payments	1,878	6,523	6,440
Total Pre-Modification Outstanding Recorded Investment	11,054	14,658	11,852
Post-Modification Outstanding Recorded Investment	8,274	10,275	10,956
Specific Reserve	$ 596	$ 500	$ 1,332
Commercial Financial Agricultural And Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	6	5	12
Extend Maturity	$ 6,768	$ 23	$ 1,751
Modify Rate	1,806	6,318	3,195
Modify Payments	987	3,854	4,527
Total Pre-Modification Outstanding Recorded Investment	9,561	10,195	9,473
Post-Modification Outstanding Recorded Investment	6,946	6,210	8,823
Specific Reserve	$ 566	$ 317	$ 1,330
Residential real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	20	39	32
Extend Maturity	$ 134	$ 107	$ 0
Modify Rate	261	214	296
Modify Payments	573	2,619	1,414
Total Pre-Modification Outstanding Recorded Investment	968	2,940	1,710
Post-Modification Outstanding Recorded Investment	851	2,698	1,575
Specific Reserve	$ 1	$ 124	$ 2
Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	5	8	1
Extend Maturity	$ 179	$ 1,368	$ 0
Modify Rate	0	0	0
Modify Payments	269	25	464
Total Pre-Modification Outstanding Recorded Investment	448	1,393	464
Post-Modification Outstanding Recorded Investment	412	1,271	389
Specific Reserve	$ 29	$ 59	$ 0
Loans To Individuals [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	10	13	16
Extend Maturity	$ 0	$ 23	$ 3
Modify Rate	28	82	167
Modify Payments	49	25	35
Total Pre-Modification Outstanding Recorded Investment	77	130	205
Post-Modification Outstanding Recorded Investment	65	96	169
Specific Reserve	$ 0	$ 0	$ 0

XML

Loans and Allowance for Credit Losses - Restructured Loans that are Considered to be in Default (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) loan	Dec. 31, 2016 USD ($) loan	Dec. 31, 2015 USD ($) loan
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan	1	4	3
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 2	$ 313	$ 97
Residential Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan	0	4	3
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 0	$ 313	$ 97
Loans To Individuals [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan	1	0	0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 2	$ 0	$ 0

XML

Loans and Allowance for Credit Losses - Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	$ 50,185	$ 50,812	$ 52,051
Charge-offs			(18,868)
Recoveries			2,681
Provision for credit losses	5,087	18,480	14,948
Ending Balance	48,298	50,185	50,812
Ending balance: individually evaluated for impaired	3,746	3,144	7,045
Ending balance: collectively evaluated for impaired	44,552	47,041	43,767
Ending balance	5,407,376	4,879,347	4,683,750
Ending balance: individually evaluated for impaired	35,151	33,668	44,009
Ending balance: collectively evaluated for impaired	5,372,225	4,845,679	4,639,741
Commercial, financial, agricultural and other [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	35,974	31,035	29,627
Charge-offs			(11,429)
Recoveries			1,097
Provision for credit losses			11,740
Ending Balance	23,429	35,974	31,035
Ending balance: individually evaluated for impaired	3,478	2,530	6,952
Ending balance: collectively evaluated for impaired	19,951	33,444	24,083
Ending balance	1,163,383	1,139,547	1,150,906
Ending balance: individually evaluated for impaired	22,450	22,325	30,767
Ending balance: collectively evaluated for impaired	1,140,933	1,117,222	1,120,139
Real Estate Construction [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	577	887	2,063
Charge-offs			(8)
Recoveries			84
Provision for credit losses			(1,252)
Ending Balance	1,349	577	887
Ending balance: individually evaluated for impaired	0	0	0
Ending balance: collectively evaluated for impaired	1,349	577	887
Ending balance	248,868	219,621	220,736
Ending balance: individually evaluated for impaired	0	0	0
Ending balance: collectively evaluated for impaired	248,868	219,621	220,736
Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	2,511	2,606	3,664
Charge-offs			(1,539)
Recoveries			587
Provision for credit losses			(106)
Ending Balance	2,759	2,511	2,606
Ending balance: individually evaluated for impaired	111	180	51
Ending balance: collectively evaluated for impaired	2,648	2,331	2,555
Ending balance	1,426,370	1,229,192	1,224,465
Ending balance: individually evaluated for impaired	6,698	5,875	6,099
Ending balance: collectively evaluated for impaired	1,419,672	1,223,317	1,218,366
Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	6,619	11,924	11,881
Charge-offs			(1,538)
Recoveries			229
Provision for credit losses			1,352
Ending Balance	17,357	6,619	11,924
Ending balance: individually evaluated for impaired	157	434	42
Ending balance: collectively evaluated for impaired	17,200	6,185	11,882
Ending balance	2,019,096	1,742,210	1,479,000
Ending balance: individually evaluated for impaired	6,003	5,468	7,143
Ending balance: collectively evaluated for impaired	2,013,093	1,736,742	1,471,857
Loans To Individuals [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	4,504	4,360	4,816
Charge-offs			(4,354)
Recoveries			684
Provision for credit losses			3,214
Ending Balance	3,404	4,504	4,360
Ending balance: individually evaluated for impaired	0	0	0
Ending balance: collectively evaluated for impaired	3,404	4,504	4,360
Ending balance	549,659	548,777	608,643
Ending balance: individually evaluated for impaired	0	0	0
Ending balance: collectively evaluated for impaired	549,659	548,777	608,643
Originated Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	50,166	50,812
Charge-offs	(11,997)	(26,305)
Recoveries	5,403	7,198
Provision for credit losses	4,680	18,461
Ending Balance	48,252	50,166	50,812
Ending balance	5,007,361	4,778,471
Originated Loans [Member] | Commercial, financial, agricultural and other [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	35,974	31,035
Charge-offs	(6,176)	(19,603)
Recoveries	3,900	4,164
Provision for credit losses	(10,280)	20,378
Ending Balance	23,418	35,974	31,035
Ending balance	1,122,741	1,131,148
Originated Loans [Member] | Real Estate Construction [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	577	887
Charge-offs	0	0
Recoveries	465	562
Provision for credit losses	307	(872)
Ending Balance	1,349	577	887
Ending balance	242,905	217,840
Originated Loans [Member] | Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	2,492	2,606
Charge-offs	(1,261)	(1,189)
Recoveries	304	481
Provision for credit losses	1,218	594
Ending Balance	2,753	2,492	2,606
Ending balance	1,206,119	1,165,851
Originated Loans [Member] | Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	6,619	11,924
Charge-offs	(340)	(570)
Recoveries	274	1,522
Provision for credit losses	10,775	(6,257)
Ending Balance	17,328	6,619	11,924
Ending balance	1,892,185	1,717,043
Originated Loans [Member] | Loans To Individuals [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	4,504	4,360
Charge-offs	(4,220)	(4,943)
Recoveries	460	469
Provision for credit losses	2,660	4,618
Ending Balance	3,404	4,504	$ 4,360
Ending balance	543,411	546,589
Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	19
Charge-offs	(512)
Recoveries	132
Provision for credit losses	407
Ending Balance	46	19
Ending balance	400,015	100,876
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	0
Charge-offs	(458)
Recoveries	1
Provision for credit losses	468
Ending Balance	11	0
Ending balance	40,642	8,399
Acquired Loans [Member] | Real Estate Construction [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	0
Charge-offs	0
Recoveries	5
Provision for credit losses	(5)
Ending Balance	0	0
Ending balance	5,963	1,781
Acquired Loans [Member] | Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	19
Charge-offs	(26)
Recoveries	67
Provision for credit losses	(54)
Ending Balance	6	19
Ending balance	220,251	63,341
Acquired Loans [Member] | Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	0
Charge-offs	0
Recoveries	4
Provision for credit losses	25
Ending Balance	29	0
Ending balance	126,911	25,167
Acquired Loans [Member] | Loans To Individuals [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	0
Charge-offs	(28)
Recoveries	55
Provision for credit losses	(27)
Ending Balance	0	0
Ending balance	$ 6,248	$ 2,188

XML

Commitments and Letters of Credit - Notional Amount of Commitments and Letter of Credit Instruments (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loss Contingencies [Line Items]
Commitments Net	$ 114	$ 358	$ 3,252
Commitments to extend credit
Loss Contingencies [Line Items]
Financial instrument of credit risk	1,840,180	1,733,820
Financial standby letters of credit
Loss Contingencies [Line Items]
Financial instrument of credit risk	17,946	18,108
Performance standby letters of credit
Loss Contingencies [Line Items]
Financial instrument of credit risk	20,472	26,630
Commercial letters of credit
Loss Contingencies [Line Items]
Financial instrument of credit risk	$ 1,149	$ 1,301

XML

Commitments and Letters of Credit - Additional Information (Detail) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Notional amount of financial standby letters of credit	$ 1,500,000
Notional amount of performance standby letters of credit	5,100,000
Notional amount of commercial letters of credit	313,000
Financial instrument of credit risk	198,000	$ 200,000
Unused commitments and letters of credit [Member]
Loss Contingencies [Line Items]
Commitment liability	$ 5,200,000	$ 4,100,000

XML

Premises and Equipment - Schedule of Premises and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 223,630	$ 207,315
Less accumulated depreciation and amortization	142,291	139,781
Total premises and equipment	81,339	67,534
Land [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	15,389	13,679
Buildings and improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 88,386	80,364
Buildings and improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	10 years
Buildings and improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	50 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 17,812	15,871
Leasehold improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Leasehold improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	40 years
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 64,609	61,324
Furniture and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Furniture and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years
Software [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 37,434	$ 36,077
Software [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Software [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years

XML

Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Sale Leaseback Transaction, Annual Rental Payments	$ 141
Gain on sale of branch	$ 297
Sale-leaseback transaction	15 year
Total lease expense	$ 2,700	$ 3,700	$ 2,900
Premises and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation included in noninterest expense	$ 9,000	$ 7,500	$ 7,200

XML

Premises and Equipment - Schedule of Future Minimum Rentals (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Premises [Member]
Operating Leased Assets [Line Items]
2016	$ 4,459
2017	4,106
2018	3,348
2019	2,929
2020	2,646
Thereafter	12,851
Total	30,339
Equipment [Member]
Operating Leased Assets [Line Items]
2016	136
2017	78
2018	15
2019	5
2020	0
Thereafter	0
Total	$ 234

XML

Goodwill and Other Amortizing Intangible Assets - Additional Information (Detail) - USD ($)			12 Months Ended
	Apr. 03, 2017	Dec. 02, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill And Other Intangibles [Line Items]
Goodwill			$ 255,353,000	$ 186,500,000
Goodwill, Acquired During Period			68,900,000
Impairment charges on goodwill			0	0	$ 0
Servicing Asset			75,000
Total amortization			6,822,000	19,442,000
Amortization of other intangible assets			$ 3,081,000	547,000	$ 605,000
FirstMerit Bank, NA, Branch Acquisition [Member]
Goodwill And Other Intangibles [Line Items]
Goodwill		$ 20,478,000
Goodwill, Acquired During Period		1,600,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		11,330,000
DCB Financial Corp [Member]
Goodwill And Other Intangibles [Line Items]
Goodwill, Acquired During Period	$ 70,600,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	5,998,000
Customer deposit intangibles
Goodwill And Other Intangibles [Line Items]
Core deposits remaining amortization period			9 years 4 months
Core deposits weighted average amortization period			8 years 11 months
Customer deposit intangibles | FirstMerit Bank, NA, Branch Acquisition [Member]
Goodwill And Other Intangibles [Line Items]
Finite-lived Intangible Assets Acquired		$ 15,700,000
Customer deposit intangibles | DCB Financial Corp [Member]
Goodwill And Other Intangibles [Line Items]
Finite-lived Intangible Assets Acquired	4,700,000
Customer deposit intangibles | Customer list intangible
Goodwill And Other Intangibles [Line Items]
Finite-lived Intangible Assets Acquired	$ 1,300,000
Customer list intangible
Goodwill And Other Intangibles [Line Items]
Core deposits remaining amortization period			11 years 8 months
Core deposits weighted average amortization period			9 years 11 months
Total amortization			$ 751,000	$ 444,000

XML

Goodwill and Other Amortizing Intangible Assets - Summarized Other Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 21,754	$ 31,455
Accumulated Amortization	(6,822)	(19,442)
Net Intangible Assets	14,932	12,013
Customer Deposit Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	19,471	30,471
Accumulated Amortization	(6,071)	(18,998)
Net Intangible Assets	13,400	11,473
Customer list intangible
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	2,283	984
Accumulated Amortization	(751)	(444)
Net Intangible Assets	$ 1,532	$ 540

XML

Goodwill and Other Amortizing Intangible Assets - Estimated Amortization Expense of Core Deposit Intangibles (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Goodwill And Other Intangibles [Line Items]
2016	$ 3,032
2017	2,685
2018	2,292
2019	1,961
2020	1,632
Thereafter	3,330
Net Intangible Assets	14,932	$ 12,013
Customer list intangible
Goodwill And Other Intangibles [Line Items]
2016	318
2017	271
2018	230
2019	193
2020	159
Thereafter	361
Net Intangible Assets	1,532	$ 540
Customer deposit intangibles
Goodwill And Other Intangibles [Line Items]
2016	2,714
2017	2,414
2018	2,062
2019	1,768
2020	1,473
Thereafter	2,969
Net Intangible Assets	$ 13,400

XML

Interest-Bearing Deposits - Components of Interest-Bearing Deposits (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deposits [Abstract]
Interest-bearing demand deposits	$ 187,281	$ 114,043
Savings deposits	3,361,840	2,972,747
Time deposits	614,813	591,832
Total interest-bearing deposits	$ 4,163,934	$ 3,678,622

XML

Interest-Bearing Deposits - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deposits [Abstract]
Interest-bearing demand deposit, money market	$ 919.1	$ 779.2
Certificates of deposit in denominations of $100 thousand or more	210.4	145.4
Interest expense related to certificates of deposit $100 thousand or greater	$ 1.5	$ 1.2	$ 1.8

XML

Interest-Bearing Deposits - Scheduled Maturities of Time Deposits (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deposits [Abstract]
2017	$ 376,181
2018	144,091
2019	43,463
2020	35,530
2021 and thereafter	15,548
Total	$ 614,813	$ 591,832

XML

Short-term Borrowings - Summary of Short-Term Borrowings (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Ending Balance	$ 707,466	$ 867,943	$ 1,510,825
Average Balance	$ 867,391	$ 1,387,737	$ 1,252,531
Average Rate	1.01%	0.58%	0.40%
Federal funds purchased
Short-term Debt [Line Items]
Ending Balance	$ 0	$ 0	$ 4,000
Average Balance	$ 6,225	$ 6,887	$ 14,832
Average Rate	1.24%	0.60%	0.36%
Borrowings from FHLB
Short-term Debt [Line Items]
Ending Balance	$ 567,500	$ 748,000	$ 1,400,000
Average Balance	$ 710,932	$ 1,265,932	$ 1,117,522
Average Rate	1.18%	0.61%	0.42%
Securities sold under agreements to repurchase
Short-term Debt [Line Items]
Ending Balance	$ 139,966	$ 119,943	$ 106,825
Average Balance	$ 150,234	$ 114,918	$ 120,177
Average Rate	0.24%	0.23%	0.23%
Maximum [Member]
Short-term Debt [Line Items]
Ending Balance	$ 967,259	$ 1,530,678	$ 1,510,825
Weighted Average [Member]
Short-term Debt [Line Items]
Average Rate	1.27%	0.63%	0.53%

XML

Short-term Borrowings - Interest Expense on Short-Term Borrowings (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest On Short Term Borrowings [Line Items]
Total interest on short-term borrowings	$ 8,799	$ 8,076	$ 5,018
Federal funds purchased
Interest On Short Term Borrowings [Line Items]
Total interest on short-term borrowings	77	41	54
Borrowings from FHLB
Interest On Short Term Borrowings [Line Items]
Total interest on short-term borrowings	8,360	7,765	4,684
Securities sold under agreements to repurchase
Interest On Short Term Borrowings [Line Items]
Total interest on short-term borrowings	$ 362	$ 270	$ 280

XML

Subordinated Debentures - Subordinated Debentures Outstanding (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Subordinated Borrowing [Line Items]
Subordinated Debentures outstanding, Amount	$ 72,167	$ 72,167
First Commonwealth Capital Trust II [Member]
Subordinated Borrowing [Line Items]
Subordinated Debentures outstanding, Due	Jan. 01, 2034
Subordinated Debentures outstanding, Amount	$ 30,929	30,929
First Commonwealth Capital Trust III [Member]
Subordinated Borrowing [Line Items]
Subordinated Debentures outstanding, Due	Jan. 01, 2034
Subordinated Debentures outstanding, Amount	$ 41,238	$ 41,238

XML

Subordinated Debentures - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) trust	Dec. 31, 2016
Subordinated Borrowing [Line Items]
Number of trusts | trust	2
First Commonwealth Capital Trust III [Member]
Subordinated Borrowing [Line Items]
Redemption price as percentage of principal amount	100.00%
Deferred finance costs	$ 630
First Commonwealth Capital Trust II [Member]
Subordinated Borrowing [Line Items]
Redemption price as percentage of principal amount	100.00%
Deferred finance costs	$ 471
LIBOR [Member] | Subordinated Debt [Member] | First Commonwealth Capital Trust III [Member]
Subordinated Borrowing [Line Items]
Variable interest rate	2.85%	2.85%
LIBOR [Member] | Subordinated Debt [Member] | First Commonwealth Capital Trust II [Member]
Subordinated Borrowing [Line Items]
Variable interest rate	2.85%	2.85%

XML

Other Long-term Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Amount
Long-term debt	$ 8,161	$ 8,749
Borrowings from FHLB [Member]
Amount
2015		586
2016	607	609
2017	631	633
2018	656	658
2019	681	684
2020	708
Thereafter		$ 5,579
Thereafter	$ 4,878
2015, Weighted Average Contractual Rate		3.83%
2016, Weighted Average Contractual Rate	3.83%	3.83%
2017, Weighted Average Contractual Rate	3.83%	3.84%
2018, Weighted Average Contractual Rate	3.84%	3.84%
2019, Weighted Average Contractual Rate	3.84%	3.84%
2020, Weighted Average Contractual Rate	3.85%
Thereafter, Weighted Average Contractual Rate		3.81%
Thereafter, Weighted Average Contractual Rate	3.80%

XML

Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Random sample percentage of securities for each quarter	100.00%
Total gains or losses included in earnings	$ (4,329,000)	$ (589,000)
Interest rate swaps transferred into Level 3 from Level 2	0	536,000
Corporate securities transferred from Level 3 to Level 2	0	536,000
Impaired loans considered to be credit risk of non-collection	100,000
Updated appraisal requirement floor	250,000
Other real estate owned	2,765,000	6,805,000
Financial instrument of credit risk	198,000	200,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings On Assets Held At Year End	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Between Levels 1 And 2	0	0
Provision for credit losses	5,087,000	18,480,000	$ 14,948,000
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total gains or losses included in earnings	(4,329,000)	(589,000)
Interest rate swaps transferred into Level 3 from Level 2	0	0
Corporate securities transferred from Level 3 to Level 2	0	0
Other Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total gains or losses included in earnings	0	0
Interest rate swaps transferred into Level 3 from Level 2	0
Corporate securities transferred from Level 3 to Level 2	$ 0	$ 0

XML

Fair Values of Assets and Liabilities - Quantitative Inputs and Assumptions Used in Level 3 Fair Value Measurements (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	$ 779,966,000	$ 829,181,000
Other Assets, Fair Value Disclosure	3,921,000	7,019,000
Fair Value, Inputs, Level 2 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	752,507,000	793,289,000
Other Assets, Fair Value Disclosure	1,778,000	6,089,000
Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	27,459,000	35,892,000
Other Assets, Fair Value Disclosure	$ 2,143,000	930,000
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Probability Of Default [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Significant Assumptions	Probability of default
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Prepayment Rates [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Significant Assumptions	Prepayment rates
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discount Rates [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Significant Assumptions	Discount rates
Other Assets [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Valuation Techniques	Discounted Cash Flow
Other Assets [Member] | Par Value [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Valuation Techniques	Par Value
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	$ 1,670,000
Equity Securities [Member] | Par Value [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Valuation Techniques	Par Value
Impaired Loans [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	$ 6,820,000
Fair Value Measurements, Valuation Techniques	Discounted Cash Flow
Impaired Loans [Member] | Reserve [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	$ 1,336,000
Fair Value Measurements, Valuation Techniques	Gas Reserve study
Impaired Loans [Member] | Discount Rates [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Significant Assumptions	Discount Rate
Impaired Loans [Member] | Discount Rates [Member] | Reserve [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Significant Assumptions	Discount rate
Impaired Loans [Member] | Gas Per Million Cubic Feet [Member] | Reserve [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Significant Assumptions	Gas per MMBTU
Impaired Loans [Member] | Oil Per Barrels Per Day [Member] | Reserve [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Measurements, Significant Assumptions	Oil per BBL/d
Fair Value, Measurements, Nonrecurring [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	$ 41,758,000	46,235,000
Other Real Estate Owned Assets Fair Value	3,264,000	7,566,000
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	26,513,000	26,245,000
Other Real Estate Owned Assets Fair Value	3,264,000	7,566,000
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	15,245,000	19,990,000
Other Real Estate Owned Assets Fair Value	$ 0	$ 0
Maximum [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	4.68%
Maximum [Member] | Probability Of Default [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	100.00%
Maximum [Member] | Prepayment Rates [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	72.02%
Maximum [Member] | Gas Per Million Cubic Feet [Member] | Reserve [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Weighted Average Inputs Price	$ 3.61
Maximum [Member] | Oil Per Barrels Per Day [Member] | Reserve [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Weighted Average Inputs Price	$ 57.65
Maximum [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discount Rates [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	11.50%
Weighted Average [Member] | Probability Of Default [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	8.98%
Weighted Average [Member] | Prepayment Rates [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	4.46%
Weighted Average [Member] | Impaired Loans [Member] | Reserve [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	10.00%
Minimum [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	1.90%
Minimum [Member] | Probability Of Default [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	0.00%
Minimum [Member] | Prepayment Rates [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	0.00%
Minimum [Member] | Gas Per Million Cubic Feet [Member] | Reserve [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Weighted Average Inputs Price	$ 2.87
Minimum [Member] | Oil Per Barrels Per Day [Member] | Reserve [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Weighted Average Inputs Price	$ 56.05
Minimum [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discount Rates [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	5.00%
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure	$ 23,646,000

XML

Fair Values of Assets and Liabilities - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	$ 731,358	$ 778,612
Other investments	29,837	36,498
Loans Held for Sale	14,850	7,052
Other Assets	3,921	7,019
Total Assets	779,966	829,181
Other Liabilities	3,079	5,972
Total Liabilities	3,079	5,972
US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	11,338	16,617
US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	24,149
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	625,555	676,853
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	1
Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	1,097	16,631
Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	27,410	27,229
Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	16,493	6,319
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	23,646	33,292
Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	729,688	776,942
Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	1,670	1,670
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Other investments	0	0
Loans Held for Sale	0	0
Other Assets	0	0
Total Assets	0	0
Other Liabilities	0	0
Total Liabilities	0	0
Level 1 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 1 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 1 [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 1 [Member] | Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 1 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 1 [Member] | Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	706,042	743,650
Other investments	29,837	36,498
Loans Held for Sale	14,850	7,052
Other Assets	1,778	6,089
Total Assets	752,507	793,289
Other Liabilities	3,079	5,972
Total Liabilities	3,079	5,972
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	11,338	16,617
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	24,149
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	625,555	676,853
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	1
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	1,097	16,631
Fair Value, Inputs, Level 2 [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	27,410	27,229
Fair Value, Inputs, Level 2 [Member] | Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	16,493	6,319
Fair Value, Inputs, Level 2 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	706,042	743,650
Total Assets	23,646
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	25,316	34,962
Other investments	0	0
Loans Held for Sale	0	0
Other Assets	2,143	930
Total Assets	27,459	35,892
Other Liabilities	0	0
Total Liabilities	0	0
Level 3 [Member] | Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Assets	1,670
Level 3 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 3 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0
Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 3 [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 3 [Member] | Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	0	0
Level 3 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale	$ 23,646	33,292
Level 3 [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale		33,292
Level 3 [Member] | Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value of Available for Sale		$ 1,670

XML

Fair Values of Assets and Liabilities - Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	$ (731,358)	$ (778,612)
Assets, Fair Value Disclosure	779,966	829,181
Balance, beginning of period	35,892	37,828
Total gains or losses included in earnings	4,329	589
Total gains or losses included in other comprehensive income	3,725	850
Purchases	1,213	430
Issuances	0	0
Sales	0	0
Settlements	(17,700)	(3,805)
Transfers from Level 3	0	(536)
Transfers into Level 3	0	536
Balance, end of period	27,459	35,892
Federal Home Loan Bank Stock	29,837	36,498
Loans Held-for-sale, Fair Value Disclosure	14,850	7,052
Other Assets, Fair Value Disclosure	3,921	7,019
Other Liabilities, Fair Value Disclosure	3,079	5,972
Financial and Nonfinancial Liabilities, Fair Value Disclosure	3,079	5,972
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	33,292	35,658
Total gains or losses included in earnings	4,329	589
Total gains or losses included in other comprehensive income	3,725	850
Purchases	0	0
Issuances	0	0
Sales	0	0
Settlements	(17,700)	(3,805)
Transfers from Level 3	0	0
Transfers into Level 3	0	0
Balance, end of period	23,646	33,292
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	1,670	2,170
Total gains or losses included in earnings	0	0
Total gains or losses included in other comprehensive income	0	0
Purchases	0	36
Issuances	0	0
Sales	0	0
Settlements	0	0
Transfers from Level 3	0	(536)
Transfers into Level 3	0	0
Balance, end of period	1,670	1,670
Other Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	930	0
Total gains or losses included in earnings	0	0
Total gains or losses included in other comprehensive income	0	0
Purchases	1,213	394
Issuances	0	0
Sales	0	0
Settlements	0	0
Transfers from Level 3	0	0
Transfers into Level 3	0
Balance, end of period	2,143	930
Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(16,493)	(6,319)
Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(729,688)	(776,942)
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(23,646)	(33,292)
US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(11,338)	(16,617)
US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(24,149)
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(625,555)	(676,853)
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	(1)
Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(1,097)	(16,631)
Obligations of States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(27,410)	(27,229)
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(1,670)	(1,670)
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Assets, Fair Value Disclosure	0	0
Federal Home Loan Bank Stock	0	0
Loans Held-for-sale, Fair Value Disclosure	0	0
Other Assets, Fair Value Disclosure	0	0
Other Liabilities, Fair Value Disclosure	0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0	0
Level 1 [Member] | Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Level 1 [Member] | Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Level 1 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Level 1 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Level 1 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Level 1 [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(706,042)	(743,650)
Assets, Fair Value Disclosure	752,507	793,289
Federal Home Loan Bank Stock	29,837	36,498
Loans Held-for-sale, Fair Value Disclosure	14,850	7,052
Other Assets, Fair Value Disclosure	1,778	6,089
Other Liabilities, Fair Value Disclosure	3,079	5,972
Financial and Nonfinancial Liabilities, Fair Value Disclosure	3,079	5,972
Fair Value, Inputs, Level 2 [Member] | Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(16,493)	(6,319)
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(706,042)	(743,650)
Assets, Fair Value Disclosure	23,646
Fair Value, Inputs, Level 2 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(11,338)	(16,617)
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(24,149)
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(625,555)	(676,853)
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	(1)
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(1,097)	(16,631)
Fair Value, Inputs, Level 2 [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(27,410)	(27,229)
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(25,316)	(34,962)
Assets, Fair Value Disclosure	27,459	35,892
Federal Home Loan Bank Stock	0	0
Loans Held-for-sale, Fair Value Disclosure	0	0
Other Assets, Fair Value Disclosure	2,143	930
Other Liabilities, Fair Value Disclosure	0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets, Fair Value Disclosure	1,670
Fair Value, Inputs, Level 3 [Member] | Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Fair Value, Inputs, Level 3 [Member] | Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value		(33,292)
Fair Value, Inputs, Level 3 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	(23,646)	(33,292)
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0
Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	0	0
Fair Value, Inputs, Level 3 [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value	$ 0	0
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, at fair value		$ (1,670)

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Fair Values of Assets and Liabilities - Schedule of Assets Measured on Nonrecurring Basis (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 779,966	$ 829,181
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	38,494	38,669
Other Real Estate Owned Assets Fair Value	3,264	7,566
Total Assets	41,758	46,235
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	0	0
Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Other Real Estate Owned Assets Fair Value	0	0
Total Assets	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	752,507	793,289
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	23,249	18,679
Other Real Estate Owned Assets Fair Value	3,264	7,566
Total Assets	26,513	26,245
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	27,459	35,892
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	15,245	19,990
Other Real Estate Owned Assets Fair Value	0	0
Total Assets	15,245	19,990
Total Gains (Losses) [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Of Assets On Nonrecurring Basis Net Losses On Impaired Loans	(1,548)	(9,032)
Fair Value Measurement Of Assets On Nonrecurring Basis Net Losses On Other Real Estate Owned	(1,099)	(703)
Fair Value Measurement Of Assets On Nonrecurring Basis Net Loss	$ (2,647)	$ (9,735)

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Fair Values of Assets and Liabilities - Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value Measurements Of Financial Instruments [Line Items]
Cash and due from banks	$ 98,624,000	$ 91,033,000
Interest-bearing deposits	8,668,000	24,644,000
Securities available for sale	731,358,000	778,612,000
Held-to-maturity Securities	422,096,000	372,513,000
Other investments	29,837,000	36,498,000
Loans held for sale	14,850,000	7,052,000
Loans	5,407,376,000	4,879,347,000	$ 4,683,750,000
Deposits	5,580,705,000	4,947,408,000
Short-term borrowings	707,466,000	867,943,000	$ 1,510,825,000
Long-term debt	8,161,000	8,749,000
Subordinated debt	72,167,000	72,167,000
Capital Lease Obligations, Current	7,590,000	0
Level 1 [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Securities available for sale	0	0
Other investments	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Securities available for sale	706,042,000	743,650,000
Other investments	29,837,000	36,498,000
Level 3 [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Securities available for sale	25,316,000	34,962,000
Other investments	0	0
Carrying Amount [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Cash and due from banks	98,624,000	91,033,000
Interest-bearing deposits	8,668,000	24,644,000
Securities available for sale	731,358,000	778,612,000
Held-to-maturity Securities	422,096,000	372,513,000
Other investments	29,837,000	36,498,000
Loans held for sale	14,850,000	7,052,000
Loans	5,407,376,000	4,879,347,000
Deposits	5,580,705,000	4,947,408,000
Short-term borrowings	707,466,000	867,943,000
Long-term debt	8,161,000	8,749,000
Subordinated debt	72,167,000	72,167,000
Capital Lease Obligations, Current	7,590,000
Estimated Fair Value [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Cash and due from banks	98,624,000	91,033,000
Interest-bearing deposits	8,668,000	24,644,000
Securities available for sale	731,358,000	778,612,000
Held-to-maturity Securities	418,249,000	368,618,000
Other investments	29,837,000	36,498,000
Loans held for sale	14,850,000	7,052,000
Loans	5,443,434,000	4,878,254,000
Deposits	5,580,812,000	4,949,714,000
Short-term borrowings	707,263,000	867,667,000
Long-term debt	8,548,000	9,169,000
Subordinated debt	65,785,000	65,656,000
Capital Lease Obligations, Current	7,590,000
Estimated Fair Value [Member] | Level 1 [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Cash and due from banks	98,624,000	91,033,000
Interest-bearing deposits	8,668,000	24,644,000
Securities available for sale	0	0
Held-to-maturity Securities	0	0
Other investments	0	0
Loans held for sale	0	0
Loans	0	0
Deposits	0	0
Short-term borrowings	0	0
Long-term debt	0	0
Subordinated debt	0	0
Capital Lease Obligations, Current	0
Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Cash and due from banks	0	0
Interest-bearing deposits	0	0
Securities available for sale	706,042,000	743,650,000
Held-to-maturity Securities	418,249,000	368,618,000
Other investments	29,837,000	36,498,000
Loans held for sale	14,850,000	7,052,000
Loans	23,249,000	18,679,000
Deposits	5,580,812,000	4,949,714,000
Short-term borrowings	707,263,000	867,667,000
Long-term debt	8,548,000	9,169,000
Subordinated debt	0	0
Capital Lease Obligations, Current	7,590,000
Estimated Fair Value [Member] | Level 3 [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Cash and due from banks	0	0
Interest-bearing deposits	0	0
Securities available for sale	25,316,000	34,962,000
Held-to-maturity Securities	0	0
Other investments	0	0
Loans held for sale	0	0
Loans	5,420,185,000	4,859,575,000
Deposits	0	0
Short-term borrowings	0	0
Long-term debt	0	0
Subordinated debt	65,785,000	$ 65,656,000
Capital Lease Obligations, Current	$ 0

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Income Taxes - Schedule of Components of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Federal	$ 29,071	$ 19,879	$ 8,610
State	274	154	68
Total current tax provision	29,345	20,033	8,678
Deferred State and Local Income Tax Expense (Benefit)	19,237	5,846	12,158
Deferred State and Local Income Tax Expense (Benefit)	(21)	(240)	0
Deferred Income Tax Expense (Benefit)	19,216	5,606	12,158
Total tax provision (benefit), Amount	$ 48,561	$ 25,639	$ 20,836

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Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Tax at statutory rate, Amount	$ 36,304	$ 29,830	$ 24,843
Income Tax Reconciliation, Bank Owned Life Insurance Income	(1,995)	(1,883)	(1,894)
Tax-exempt interest income, net, Amount	(2,709)	(2,434)	(2,232)
Tax credits, Amount	(11)	0	(61)
Other, Amount	99	182	136
Total tax provision (benefit), Amount	$ 48,561	$ 25,639	$ 20,836
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Tax at statutory rate, Pretax Income	35.00%	35.00%	35.00%
Income from bank owned life insurance, Pretax Income	(2.00%)	(2.00%)	(3.00%)
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	$ 164	$ (56)	$ 44
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent	0.00%	0.00%	0.00%
Tax-exempt interest income, net, Pretax Income	(3.00%)	(3.00%)	(3.00%)
Tax credits, Pretax Income	(0.00%)	(0.00%)	(0.00%)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	$ 16,709	$ 0	$ 0
Effective Income Tax Rate Reconciliation, Deduction, Percent	(17.00%)	0.00%	0.00%
Other, Pretax Income	0.00%	0.00%	0.00%
Total tax provision (benefit), Pretax Income	47.00%	30.00%	29.00%

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Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Operating Loss Carryforwards	$ 29,000,000
Unrecognized Tax Benefits	$ 0
Federal statutory rate	35.00%	35.00%	35.00%
Annual effective income tax rate, percentage	47.00%	30.00%	29.00%
Net deferred tax asset	$ 25,509,000	$ 33,315,000
Alternative minimum tax credit carryforward	201,000	0
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	$ 16,709,000	$ 0	$ 0

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Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets, Gross [Abstract]
Allowance for credit losses	$ 10,223	$ 17,616
Postretirement benefits other than pensions	345	611
Alternative minimum tax credit carryforward	201	0
Unrealized loss on securities available for sale	2,091	3,905
Deferred Tax Assets, Operating Loss Carryforwards	6,145	0
Writedown of other real estate owned	878	1,266
Deferred compensation	1,514	1,966
Accrued interest on nonaccrual loans	1,017	1,701
Accrued incentives	1,277	2,627
Unfunded loan commitments & other reserves	1,098	1,452
Deferred rent	801	1,285
Other	1,224	1,966
Total deferred tax assets	26,814	34,395
Deferred tax liabilities:
Income from unconsolidated subsidiary	(380)	(623)
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(587)	(28)
Other	(338)	(429)
Total deferred tax liabilities	(1,305)	(1,080)
Net deferred tax asset	$ 25,509	$ 33,315

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Retirement Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employer contribution	6.00%
Employee contribution	80.00%
Plan expense	$ 2,800,000	$ 2,500,000	$ 2,700,000
Retirement Plan expense	0	$ 0
Minimum [Member]
Total annual compensation for a calendar year for non-qualified deferred compensation plan	$ 110,000
Eligibility of participants	1.00%
Maximum [Member]
Eligibility of participants	25.00%

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Retirement Plans - Schedule of Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Retirement Benefits [Abstract]
Service cost	$ 0	$ 0	$ 0
Interest cost on projected benefit obligation	49	67	62
Amortization of transition obligation	0	0	0
Gain amortization	(21)	(7)	(4)
Net periodic benefit cost	$ 28	$ 60	$ 58

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Retirement Plans - Schedule of Changes in Benefit Obligations and Plan Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Service cost	$ 0	$ 0	$ 0
Interest cost	49	67	62
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Funded Status at End of Year	1,194	1,394
Unrecognized transition obligation	0	0
Unrecognized net gain	440	345
Amounts recognized in retained earnings	1,634	1,739
Change in Benefit Obligation [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	1,394	1,815
Service cost	0	0
Interest cost	49	67
Amendments	0	0
Actuarial gain	(116)	(337)
Net benefits paid	(133)	(151)
Benefit obligation at end of year	1,194	1,394	1,815
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Net benefits paid	(133)	(151)
Change In Plan Assets [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Net benefits paid	(133)	(151)
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	0	0
Actual return on plan assets	0	0
Employer contributions	133	151
Net benefits paid	(133)	(151)
Fair value of plan assets at end of year	$ 0	$ 0	$ 0

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Retirement Plans - Schedule of Amounts Recognized as Other Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Amounts Recognized in the Statement of Financial Condition as Other liabilities	$ 1,194	$ 1,394

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Retirement Plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net (gain) loss	$ (347)	$ (225)	$ (10)
Transition obligation	0	0	0
Total	(347)	$ (225)	$ (10)
Postretirement Benefit Costs [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net (gain) loss	(35)
Transition obligation	0
Total	$ (35)

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Retirement Plans - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligation (Detail) - Benefit Obligation [Member]	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net Periodic Benefit Cost Assumptions [Line Items]
Discount rate	3.37%	3.74%	3.88%
Health care cost trend: Initial	6.00%	6.00%	6.25%
Health care cost trend: Ultimate	4.75%	4.75%	4.75%
Year ultimate reached	2023	2022	2022

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Retirement Plans - Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Cost (Detail) - Net Periodic Cost [Member]	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net Periodic Benefit Cost Assumptions [Line Items]
Discount rate	3.74%	3.88%	3.61%
Health care cost trend: Initial	6.00%	6.25%	6.50%
Health care cost trend: Ultimate	4.75%	4.75%	4.75%
Year ultimate reached	2022	2022	2022
Corridor	10.00%	10.00%	10.00%
Recognition period for gains and losses	11 years	11 years	11 years

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Retirement Plans - Schedule of Impact of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Retirement Benefits [Abstract]
Effect on total of service and interest cost components, One-Percentage-Point Increase	$ 29
Effect on postretirement benefit obligation, One-Percentage-Point Increase	2
Effect on total of service and interest cost components, One-Percentage-Point Decrease	(27)
Effect on postretirement benefit obligation, One-Percentage-Point Decrease	$ (2)

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Retirement Plans - Schedule of Projected Benefit Payments (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2016	$ 152
2017	128
2018	122
2019	115
2020	107
2021 - 2025	$ 422

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Incentive Compensation Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions																															1 Months Ended		12 Months Ended
	Mar. 24, 2017	Feb. 23, 2017	Dec. 19, 2016	Sep. 30, 2016	Sep. 19, 2016	Jun. 07, 2016	Mar. 01, 2016	Mar. 01, 2016	Mar. 01, 2016	Feb. 18, 2016	Dec. 30, 2015	Jun. 26, 2015	Feb. 20, 2015	Feb. 20, 2015	Feb. 05, 2015	Jan. 29, 2015	Jan. 26, 2015	Jan. 15, 2015	Nov. 18, 2014	Apr. 08, 2014	Mar. 25, 2014	Mar. 05, 2014	Jan. 27, 2014	Jan. 01, 2014	Aug. 16, 2013	May 31, 2013	Mar. 01, 2013	Jan. 28, 2013	Jan. 02, 2012	Apr. 01, 2011	Feb. 24, 2012	Nov. 21, 2011	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant Price (in dollars per share)																																	$ 12.99	$ 9.88	$ 8.41
Maximum number of shares that are available to be awarded																																	5,000,000
Vesting period of restricted stock		0 years								0 years	0 years						0 years						0 years					1 year			1 year
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant																																	3,365,572
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant Price (in dollars per share)											$ 9.18																						$ 14.32
Allocated Share-based Compensation Expense																																	$ 3.8
Compensation expense																																		$ 3.2	$ 1.4
Unrecognized compensation cost related to unvested restricted stock																																	$ 3.0
75 Percent of Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant Price (in dollars per share)		$ 13.29
25 Percent of Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant Price (in dollars per share)		$ 15.09
March 24, 2017 Grant 4 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	5,000
Grant Price (in dollars per share)	$ 12.99
Vesting Date	Mar. 24, 2020
Number of Equal Vesting Periods	1
March 24, 2017 Grant 3 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	7,000
Grant Price (in dollars per share)	$ 12.99
Vesting Date	Aug. 31, 2017
Number of Equal Vesting Periods	1
March 24, 2017 Grant 2 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	7,000
Grant Price (in dollars per share)	$ 12.99
Vesting Date	Mar. 24, 2020
Number of Equal Vesting Periods	1
March 24, 2017 Grant 1 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	7,000
Grant Price (in dollars per share)	$ 12.99
Vesting Date	Aug. 31, 2017
Number of Equal Vesting Periods	1
Executive [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)			15,000	10,000	33,000	10,000	10,000	5,000	20,000	18,348		1,000	34,200	10,000				20,000	3,500	27,500	46,000	5,000		12,626	3,000	45,000	10,000		100,000	25,000		10,000
Grant Price (in dollars per share)			$ 13.96	$ 10.09	$ 10.02	$ 9.34	$ 8.84	$ 8.84	$ 8.84	$ 8.43		$ 9.84	$ 8.45	$ 8.45				$ 8.38	$ 9.26	$ 8.89	$ 9.18	$ 8.75		$ 8.82	$ 7.57	$ 7.21	$ 7.35		$ 5.26	$ 6.82		$ 4.41
Vesting Date			Dec. 19, 2019	Sep. 30, 2019	Sep. 19, 2019	Jun. 07, 2019	Mar. 01, 2019	Mar. 01, 2019	Aug. 31, 2017	Dec. 31, 2016		Jun. 26, 2018	Dec. 31, 2015	Aug. 31, 2017				Jan. 15, 2017	Nov. 17, 2017	Apr. 08, 2017	Mar. 24, 2017	Mar. 04, 2017		Dec. 31, 2014	Aug. 16, 2016	May 31, 2016	Mar. 01, 2016		Jan. 01, 2016	Apr. 01, 2016		Nov. 21, 2014
Number of Equal Vesting Periods			3	1	3	1	1	1	1	1		1	1	1				1	1	3	1	1		1	1	3	1		4	1		1
Executive [Member] | Restricted Stock [Member] | Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)															50,000																34,000
Grant Price (in dollars per share)															$ 8.55																$ 5.96
Vesting Date															Feb. 05, 2018																Dec. 31, 2014
Number of Equal Vesting Periods															1																1
Executive [Member] | Restricted Stock [Member] | Annual Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)																20,170															90,000
Grant Price (in dollars per share)																$ 7.93															$ 5.96
Vesting Date																Dec. 31, 2015															Feb. 24, 2015
Number of Equal Vesting Periods																1															1

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Incentive Compensation Plan - Unvested Service-Based Restricted Stock Awards (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, beginning of the year, Shares	247,668	231,834	265,000
Granted, Shares	26,000	121,348	135,370
Vested, Shares	(151,668)	(105,514)	(168,536)
Forfeited, Shares	(5,000)	0	0
Outstanding, end of the year, Shares	117,000	247,668	231,834
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding, beginning of the year, Weighted Average Grant Date Fair Value	$ 9.34	$ 8.01	$ 7.08
Grant Price (in dollars per share)	12.99	9.88	8.41
Vested, Weighted Average Grant Date Fair Value	9.49	7.04	6.87
Forfeited, Weighted Average Grant Date Fair Value	8.55	0.00	0.00
Outstanding, end of the year, Weighted Average Grant Date Fair Value	$ 9.99	$ 9.34	$ 8.01

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Incentive Compensation Plan Incentive Compensation Plan - Restricted Stock Awards Estimated to be Granted on a Performance Award (Details) - $ / shares																														1 Months Ended		12 Months Ended
	Mar. 24, 2017	Feb. 23, 2017	Dec. 19, 2016	Sep. 30, 2016	Sep. 19, 2016	Jun. 07, 2016	Mar. 01, 2016	Mar. 01, 2016	Mar. 01, 2016	Feb. 18, 2016	Dec. 30, 2015	Jun. 26, 2015	Feb. 20, 2015	Feb. 20, 2015	Feb. 05, 2015	Jan. 26, 2015	Jan. 15, 2015	Nov. 18, 2014	Apr. 08, 2014	Mar. 25, 2014	Mar. 05, 2014	Jan. 27, 2014	Jan. 01, 2014	Aug. 16, 2013	May 31, 2013	Mar. 01, 2013	Jan. 28, 2013	Jan. 02, 2012	Apr. 01, 2011	Feb. 24, 2012	Nov. 21, 2011	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Percentage Of Target Award Participants Earn		40.00%								40.00%						40.00%						40.00%					40.00%			40.00%
Performance Shares Awards As Percentage Of Target		100.00%								100.00%						100.00%						100.00%					100.00%			100.00%
Percentage Of Target Award Opportunities Maximum In Certain Cases		200.00%								200.00%						200.00%						200.00%					200.00%			200.00%
Vesting period of restricted stock		0 years								0 years	0 years					0 years						0 years					1 year			1 year
Performance Based Stock Awards Vesting Period		3 years								3 years	5 years					3 years						3 years					3 years			3 years
Grant Price (in dollars per share)																																$ 12.99	$ 9.88	$ 8.41
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant Price (in dollars per share)											$ 9.18																					$ 14.32
Restricted Stock [Member] | March 24, 2017 Grant 4 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued to executive	5,000
Grant Price (in dollars per share)	$ 12.99
Vesting Date	Mar. 24, 2020
Number of Equal Vesting Periods	1
Restricted Stock [Member] | Executive [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued to executive			15,000	10,000	33,000	10,000	10,000	5,000	20,000	18,348		1,000	34,200	10,000			20,000	3,500	27,500	46,000	5,000		12,626	3,000	45,000	10,000		100,000	25,000		10,000
Grant Price (in dollars per share)			$ 13.96	$ 10.09	$ 10.02	$ 9.34	$ 8.84	$ 8.84	$ 8.84	$ 8.43		$ 9.84	$ 8.45	$ 8.45			$ 8.38	$ 9.26	$ 8.89	$ 9.18	$ 8.75		$ 8.82	$ 7.57	$ 7.21	$ 7.35		$ 5.26	$ 6.82		$ 4.41
Vesting Date			Dec. 19, 2019	Sep. 30, 2019	Sep. 19, 2019	Jun. 07, 2019	Mar. 01, 2019	Mar. 01, 2019	Aug. 31, 2017	Dec. 31, 2016		Jun. 26, 2018	Dec. 31, 2015	Aug. 31, 2017			Jan. 15, 2017	Nov. 17, 2017	Apr. 08, 2017	Mar. 24, 2017	Mar. 04, 2017		Dec. 31, 2014	Aug. 16, 2016	May 31, 2016	Mar. 01, 2016		Jan. 01, 2016	Apr. 01, 2016		Nov. 21, 2014
Number of Equal Vesting Periods			3	1	3	1	1	1	1	1		1	1	1			1	1	3	1	1		1	1	3	1		4	1		1
Restricted Stock [Member] | Executive [Member] | Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued to executive															50,000															34,000
Grant Price (in dollars per share)															$ 8.55															$ 5.96
Vesting Date															Feb. 05, 2018															Dec. 31, 2014
Number of Equal Vesting Periods															1															1
Restricted Stock [Member] | March 24, 2017 Grant 3 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued to executive	7,000
Grant Price (in dollars per share)	$ 12.99
Vesting Date	Aug. 31, 2017
Number of Equal Vesting Periods	1
Restricted Stock [Member] | March 24, 2017 Grant 2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued to executive	7,000
Grant Price (in dollars per share)	$ 12.99
Vesting Date	Mar. 24, 2020
Number of Equal Vesting Periods	1
Restricted Stock [Member] | March 24, 2017 Grant 1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued to executive	7,000
Grant Price (in dollars per share)	$ 12.99
Vesting Date	Aug. 31, 2017
Number of Equal Vesting Periods	1
Restricted Stock [Member] | Executive [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued to executive		93,500,000								160,650,000	60,000,000					125,000,000						125,000,000					128,611,000			68,000,000

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Incentive Compensation Plan - Unvested Target Award (Detail) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, beginning of the year, Shares	247,668	231,834	265,000
Granted, Shares	26,000	121,348	135,370
Vested, Shares	(151,668)	(105,514)	(168,536)
Forfeited, Shares	(5,000)	0	0
Outstanding, end of the year, Shares	117,000	247,668	231,834
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, beginning of the year, Shares	426,596	320,705	284,000
Granted, Shares	276,442	176,936	185,000
Vested, Shares	(171,637)	(18,348)	(34,200)
Forfeited, Shares	(6,356)	(52,697)	(114,095)
Outstanding, end of the year, Shares	525,045	426,596	320,705

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Contingent Liabilities - Additional Information (Detail)	Dec. 31, 2017 USD ($)
Minimum [Member]
Loss Contingencies [Line Items]
Range of reasonably possible losses	$ 0
Maximum [Member]
Loss Contingencies [Line Items]
Range of reasonably possible losses	$ 7,000,000

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Related Party Transactions - Loans to Related Parties (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Loans and Leases Receivable, Related Parties [Roll Forward]
Beginning balance	$ 1,164
Advances	740
Repayments	(1,127)
Ending balance	5,648
Other Loans And Leases Receivable Related Parties	$ 4,871

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Regulatory Restrictions and Capital Adequacy - Schedule of Capital Amount and Ratio Considered to be Capitalized (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
First Commonwealth Financial Corporation
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 Common Equity to Risk Weighted Assets	$ 623,252	$ 563,262
Tier 1 Common Equity to Risk Weighted Assets	10.32%	10.06%
Tier 1 Common Equity Required to be Well Capitalized	$ 392,620	$ 364,026
Tier 1 Common Equity Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%
First Commonwealth Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 Common Equity to Risk Weighted Assets	$ 658,861	$ 562,784
Tier 1 Common Equity to Risk Weighted Assets	10.94%	10.09%
Tier 1 Common Equity Required to be Well Capitalized	$ 391,315	$ 362,680
Tier 1 Common Equity Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%
Actual | First Commonwealth Financial Corporation
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to Risk Weighted Assets	$ 745,473	$ 687,554
Tier I Capital to Risk Weighted Assets	691,993	633,262
Tier I Capital to Average Assets	$ 691,993	$ 633,262
Total Capital to Risk Weighted Assets, Ratio	12.34%	12.28%
Tier I Capital to Risk Weighted Assets, Ratio	11.46%	11.31%
Tier I Capital to Average Assets, Ratio	9.74%	9.83%
Actual | First Commonwealth Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to Risk Weighted Assets	$ 712,341	$ 617,076
Tier I Capital to Risk Weighted Assets	658,861	562,784
Tier I Capital to Average Assets	$ 658,861	$ 562,784
Total Capital to Risk Weighted Assets, Ratio	11.83%	11.06%
Tier I Capital to Risk Weighted Assets, Ratio	10.94%	10.09%
Tier I Capital to Average Assets, Ratio	9.30%	8.79%
Minimum Capital Required - Basel III Phase-In Schedule | First Commonwealth Financial Corporation
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount	$ 558,728	$ 483,034
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount	437,922	371,026
Tier I Capital to Average Assets, Regulatory Minimum Capital Amount	284,100	257,776
Tier 1 Common Equity Required for Capital Adequacy	$ 347,317	$ 287,020
Total Capital to Risk Weighted Assets, Regulatory Minimum Ratio	9.25%	8.625%
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Ratio	7.25%	6.625%
Tier I Capital to Average Assets, Regulatory Minimum Ratio	4.00%	4.00%
Tier 1 Common Equity Required for Capital Adequacy to Risk Weighted Assets	5.75%	5.125%
Minimum Capital Required - Basel III Phase-In Schedule | First Commonwealth Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount	$ 556,872	$ 481,248
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount	436,467	369,654
Tier I Capital to Average Assets, Regulatory Minimum Capital Amount	283,344	256,214
Tier 1 Common Equity Required for Capital Adequacy	$ 346,163	$ 285,959
Total Capital to Risk Weighted Assets, Regulatory Minimum Ratio	9.25%	8.625%
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Ratio	7.25%	6.625%
Tier I Capital to Average Assets, Regulatory Minimum Ratio	4.00%	4.00%
Tier 1 Common Equity Required for Capital Adequacy to Risk Weighted Assets	5.75%	5.125%
Minimum Capital Required - Basel III Fully Phased-In | First Commonwealth Financial Corporation
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount	$ 634,232	$ 588,042
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount	513,426	476,034
Tier I Capital to Average Assets, Regulatory Minimum Capital Amount	284,100	257,776
Tier 1 Common Equity Required for Capital Adequacy	$ 422,821	$ 392,028
Total Capital to Risk Weighted Assets, Regulatory Minimum Ratio	10.50%	10.50%
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Ratio	8.50%	8.50%
Tier I Capital to Average Assets, Regulatory Minimum Ratio	4.00%	4.00%
Tier 1 Common Equity Required for Capital Adequacy to Risk Weighted Assets	7.00%	7.00%
Minimum Capital Required - Basel III Fully Phased-In | First Commonwealth Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount	$ 632,124	$ 585,867
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount	511,720	474,273
Tier I Capital to Average Assets, Regulatory Minimum Capital Amount	283,344	256,214
Tier 1 Common Equity Required for Capital Adequacy	$ 421,416	$ 390,578
Total Capital to Risk Weighted Assets, Regulatory Minimum Ratio	10.50%	10.50%
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Ratio	8.50%	8.50%
Tier I Capital to Average Assets, Regulatory Minimum Ratio	4.00%	4.00%
Tier 1 Common Equity Required for Capital Adequacy to Risk Weighted Assets	7.00%	7.00%
Required to be Considered Well Capitalized | First Commonwealth Financial Corporation
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier One Risk Based Capital Required to be Well Capitalized	$ 483,224	$ 448,032
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Tier One Leverage Capital Required to be Well Capitalized	$ 355,125	$ 322,220
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%
Total Capital to Risk Weighted Assets, Well Capitalized Regulatory Guidelines	$ 604,030	$ 560,040
Total Capital to Risk Weighted Assets, Well Capitalized Regulatory Guidelines	10.00%	10.00%
Required to be Considered Well Capitalized | First Commonwealth Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier One Risk Based Capital Required to be Well Capitalized	$ 481,619	$ 446,375
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Tier One Leverage Capital Required to be Well Capitalized	$ 354,180	$ 320,268
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%
Total Capital to Risk Weighted Assets, Well Capitalized Regulatory Guidelines	$ 602,023	$ 557,969
Total Capital to Risk Weighted Assets, Well Capitalized Regulatory Guidelines	10.00%	10.00%

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Capital - Additional Information (Detail) $ / shares in Units, $ in Thousands	48 Months Ended
	Jun. 30, 2016 $ / shares shares	Apr. 03, 2017 USD ($)	Dec. 02, 2016 USD ($) branch	Jan. 27, 2015 shares	Jan. 28, 2014 shares	Jan. 29, 2013 shares	Jun. 19, 2012 USD ($) shares
Announcement of common stock repurchase program							$ 50,000
Number of shares authorized to be repurchased | shares				25,000,000.0	25,000,000.0	25,000,000.0	25,000,000.0
Stock repurchased (in shares) | shares	16,665,735
Average price per share | $ / shares	$ 7.55
FirstMerit Bank, NA, Branch Acquisition [Member]
Number of Stores | branch			13
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets			$ 122,766
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits			$ 619,729
DCB Financial Corp [Member]
Business Combination, Acquired Receivables, Gross Contractual Amount		$ 390,760
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets		554,890
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits		$ 484,366

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Condensed Financial Information of First Commonwealth Financial Corporation (Parent Company Only) - Statements of Financial Condition (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Loans	$ 5,359,078	$ 4,829,162
Premises and equipment, net	81,339	67,534
Other assets	77,465	84,648
Total assets	7,308,539	6,684,018
Liabilities and Shareholders' Equity
Subordinated debentures payable	72,167	72,167
Shareholders' equity	888,127	749,929	$ 719,546	$ 716,145
Total liabilities and shareholders’ equity	7,308,539	6,684,018
Parent Company [Member]
Assets
Cash	16,432	30,387
Loans	17	19
Investment in subsidiaries	927,765	770,214
Investment in unconsolidated subsidiary trusts	2,186	2,185
Investment in Jointly-Owned Company	9,191	9,042
Premises and equipment, net	3,715	3,793
Recievable from subsidiaries	0	33
Dividends receivable from subsidiaries	0	4,662
Other assets	4,996	2,453
Total assets	964,302	822,788
Liabilities and Shareholders' Equity
Accrued expenses and other liabilities	4,008	692
Subordinated debentures payable	72,167	72,167
Shareholders' equity	888,127	749,929
Total liabilities and shareholders’ equity	$ 964,302	$ 822,788

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Condensed Financial Information of First Commonwealth Financial Corporation (Parent Company Only) - Statements of Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Interest and dividends	$ 250,550	$ 217,614	$ 204,071
Interest expense	(21,770)	(18,579)	(15,595)
Other income	7,677	6,372	7,041
Applicable income tax (provision) benefits	(48,561)	(25,639)	(20,836)
Net Income	55,165	59,590	50,143
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Interest and dividends	1	1	1
Dividends from subsidiaries	52,586	55,510	49,917
Interest expense	(3,000)	(2,635)	(2,357)
Other income	17	83	232
Operating expense	(4,767)	(4,700)	(4,989)
Income (loss) before taxes and equity in undistributed earnings of subsidiaries	44,837	48,259	42,804
Applicable income tax (provision) benefits	2,557	2,515	2,528
Income (loss) before equity in undistributed earnings of subsidiaries	47,394	50,774	45,332
Equity in undistributed (loss) earnings of subsidiaries	7,771	8,816	4,811
Net Income	$ 55,165	$ 59,590	$ 50,143

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Condensed Financial Information of First Commonwealth Financial Corporation (parent company only) - Statements of Cash Flow (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Activities
Net Income	$ 55,165	$ 59,590	$ 50,143
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,997	7,116	7,640
Other net	10,997	3,111	(7,929)
Net cash provided by operating activities	88,305	89,273	72,751
Investing Activities
Net cash provided by (used in) investing activities	52,797	(493,774)	142,433
Financing Activities
Dividends paid	(30,513)	(24,907)	(25,089)
Proceeds from reissuance of treasury stock	228	216	192
Purchase of treasury stock	(1,458)	(864)	(25,383)
Net cash (used in) provided by financing activities	(43,893)	(536,822)	64,596
Net (decrease) increase in cash and cash equivalents	(8,385)	46,225	(5,086)
Cash and cash equivalents at January 1	115,677	69,452	74,538
Cash and cash equivalents at December 31	107,292	115,677	69,452
Parent Company [Member]
Operating Activities
Net Income	55,165	59,590	50,143
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	322	355	493
Net (gains) losses on sales of assets	(3)	0	240
(Increase) decrease in prepaid income taxes	(550)	7,380	(6,993)
Undistributed equity in subsidiaries	(7,771)	(8,816)	(4,811)
Other net	8,767	7,759	10,753
Net cash provided by operating activities	55,930	66,268	49,825
Investing Activities
Net change in loans	2	3	2
Payments to Acquire Property and Equipment	(207)	0	54
Proceeds from sale of other assets	3	(332)	0
Proceeds from Divestiture of Businesses	0	27,017	0
Payments to Acquire Interest in Subsidiaries and Affiliates	(250)	0	0
Payments to Acquire Additional Interest in Subsidiaries	(37,690)	(47,017)	0
Net cash provided by (used in) investing activities	(38,142)	20,329	(56)
Financing Activities
Dividends paid	(30,513)	(24,907)	(25,089)
Proceeds from reissuance of treasury stock	228	216	192
Purchase of treasury stock	(1,458)	(864)	(25,383)
Net cash (used in) provided by financing activities	(31,743)	(25,555)	(50,280)
Net (decrease) increase in cash and cash equivalents	(13,955)	20,384	(399)
Cash and cash equivalents at January 1	30,387	10,003	10,402
Cash and cash equivalents at December 31	$ 16,432	$ 30,387	$ 10,003

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Condensed Financial Information of First Commonwealth Financial Corporation (Parent Company Only) - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2015	Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.32	$ 0.28
Line of credit	$ 15,000,000
Borrowings		$ 0	$ 0

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Subsequent Event (Details) - Foundation Bank Acquisition [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Subsequent Event [Line Items]
Cash received	$ 58,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	215,000
Loans	182,000
Deposits	$ 148,000