10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2018

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	(I.R.S. Employer
incorporation or organization)	Identification No.)
601 Philadelphia Street, Indiana, PA	15701
(Address of principal executive offices)	(Zip Code)

724-349-7220

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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

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

Non-accelerated filer  ¨ (Do not check if a smaller reporting 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 number of shares outstanding of issuer’s common stock, $1.00 par value, as of May 8, 2018, was 100,361,905.

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

FORM 10-Q

INDEX

		PAGE
PART I.	Financial Information
ITEM 1.	Financial Statements and Supplementary Data
	Included in Part I of this report:
	First Commonwealth Financial Corporation and Subsidiaries
	Condensed Consolidated Statements of Financial Condition (Unaudited)	3
	Condensed Consolidated Statements of Income (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	5
	Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to the Unaudited Condensed Consolidated Financial Statements	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	61
ITEM 4.	Controls and Procedures	61
PART II.	Other Information
ITEM 1.	Legal Proceedings	62
ITEM 1A.	Risk Factors	62
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
ITEM 3.	Defaults Upon Senior Securities	62
ITEM 4.	Mine Safety Disclosures	62
ITEM 5.	Other Information	62
ITEM 6.	Exhibits	63
	Signatures	64

2

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

	March 31, 2018			December 31, 2017
	(dollars in thousands, except share data)
Assets
Cash and due from banks	$	65,886		$	98,624
Interest-bearing bank deposits	9,736			8,668
Securities available for sale, at fair value	812,877			731,358
Securities held to maturity, at amortized cost (Fair value of $399,528 and $418,249 at March 31, 2018 and December 31, 2017, respectively)	410,430			422,096
Other investments	24,400			29,837
Loans held for sale	9,759			14,850
Loans:
Portfolio loans	5,381,305			5,407,376
Allowance for credit losses	(53,732		)	(48,298		)
Net loans	5,327,573			5,359,078
Premises and equipment, net	80,868			81,339
Other real estate owned	2,997			2,765
Goodwill	255,180			255,353
Amortizing intangibles, net	14,223			15,007
Bank owned life insurance	211,287			212,099
Other assets	95,551			77,465
Total assets	$	7,320,767		$	7,308,539
Liabilities
Deposits (all domestic):
Noninterest-bearing	$	1,443,747		$	1,416,771
Interest-bearing	4,259,775			4,163,934
Total deposits	5,703,522			5,580,705
Short-term borrowings	588,016			707,466
Subordinated debentures	72,167			72,167
Other long-term debt	8,011			8,161
Capital lease obligation	7,498			7,590
Total long-term debt	87,676			87,918
Other liabilities	42,204			44,323
Total liabilities	6,421,418			6,420,412
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 shares issued at March 31, 2018 and December 31, 2017, and 97,603,151 and 97,456,478 shares outstanding at March 31, 2018 and December 31, 2017, respectively	113,915			113,915
Additional paid-in capital	471,768			470,123
Retained earnings	454,227			437,416
Accumulated other comprehensive loss, net	(13,009		)	(6,173		)
Treasury stock (16,311,751 and 16,458,424 shares at March 31, 2018 and December 31, 2017, respectively)	(127,552		)	(127,154		)
Total shareholders’ equity	899,349			888,127
Total liabilities and shareholders’ equity	$	7,320,767		$	7,308,539

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

ITEM 1. Financial Statements and Supplementary Data (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	For the Three Months Ended
	March 31,
	2018		2017
	(dollars in thousands, except share data)
Interest Income
Interest and fees on loans	$	58,483	$	48,300
Interest and dividends on investments:
Taxable interest	7,056		6,994
Interest exempt from federal income taxes	410		397
Dividends	519		476
Interest on bank deposits	31		12
Total interest income	66,499		56,179
Interest Expense
Interest on deposits	3,541		1,812
Interest on short-term borrowings	2,295		1,749
Interest on subordinated debentures	827		705
Interest on other long-term debt	77		83
Interest on lease obligations	74		—
Total interest expense	6,814		4,349
Net Interest Income	59,685		51,830
Provision for credit losses	6,903		3,229
Net Interest Income after Provision for Credit Losses	52,782		48,601
Noninterest Income
Net securities gains	2,840		652
Trust income	1,928		1,417
Service charges on deposit accounts	4,406		4,319
Insurance and retail brokerage commissions	1,868		2,082
Income from bank owned life insurance	1,494		1,292
Gain on sale of mortgage loans	1,484		977
Gain on sale of other loans and assets	574		307
Card-related interchange income	4,742		4,251
Derivatives mark to market	789		2
Swap fee income (expense)	290		(73		)
Other income	1,628		1,706
Total noninterest income	22,043		16,932
Noninterest Expense
Salaries and employee benefits	24,873		23,466
Net occupancy expense	4,369		3,761
Furniture and equipment expense	3,540		3,088
Data processing expense	2,433		2,085
Advertising and promotion expense	809		806
Pennsylvania shares tax expense	903		816
Intangible amortization	784		572
Collection and repossession expense	823		497
Other professional fees and services	1,007		959
FDIC insurance	776		793
Loss on sale or write-down of assets	197		99
Litigation and operational losses	179		232
Merger and acquisition related	337		611
Other operating expenses	5,843		4,980
Total noninterest expense	46,873		42,765
Income Before Income Taxes	27,952		22,768
Income tax provision	4,682		6,880
Net Income	$	23,270	$	15,888
Average Shares Outstanding	97,433,137		88,929,892
Average Shares Outstanding Assuming Dilution	97,601,162		88,987,671
Per Share Data:
Basic Earnings per Share	$	0.24	$	0.18
Diluted Earnings per Share	$	0.24	$	0.18
Cash Dividends Declared per Common Share	$	0.08	$	0.08

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

ITEM 1. Financial Statements and Supplementary Data(Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	For the Three Months Ended
	March 31,
	2018			2017
	(dollars in thousands)
Net Income	$	23,270		$	15,888
Other comprehensive (loss) income, before tax benefit (expense):
Unrealized holding (losses) gains on securities arising during the period	(3,982		)	2,543
Less: reclassification adjustment for gains on securities included in net income	(2,840		)	(652		)
Unrealized holding losses on derivatives arising during the period	(130		)	(516		)
Less: reclassification adjustment for losses on derivatives included in net income	—			78
Total other comprehensive (loss) income, before tax benefit (expense)	(6,952		)	1,453
Income tax benefit (expense) related to items of other comprehensive (loss) income	1,460			(509		)
Total other comprehensive (loss) income	(5,492		)	944
Comprehensive Income	$	17,778		$	16,832

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

ITEM 1. Financial Statements and Supplementary Data(Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

	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 share and per share data)
Balance at December 31, 2017	97,456,478		$	113,915	$	470,123	$	437,416		$	(6,173	)	$	(127,154	)	$	888,127
Cumulative effect of adoption of ASU 2018-02							1,344			(1,344		)				—
January 1, 2018	97,456,478		113,915		470,123		438,760			(7,517		)	(127,154		)	888,127
Net income							23,270									23,270
Other comprehensive loss										(5,492		)				(5,492		)
Cash dividends declared ($0.08 per share)							(7,803		)							(7,803		)
Treasury stock acquired	(72,307	)											(1,079		)	(1,079		)
Treasury stock reissued	149,480				1,108		—						1,149			2,257
Restricted stock	69,500		—		537		—						(468		)	69
Balance at March 31, 2018	97,603,151		$	113,915	$	471,768	$	454,227		$	(13,009	)	$	(127,552	)	$	899,349

	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 share and 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							15,888									15,888
Other comprehensive income										944						944
Cash dividends declared ($0.08 per share)							(7,119		)							(7,119		)
Treasury stock acquired	(78,632	)											(1,102		)	(1,102		)
Treasury stock reissued	158,638				1,044		—						1,214			2,258
Restricted stock	26,000		—		137		—						60			197
Balance at March 31, 2017	89,113,083		$	105,563	$	367,607	$	421,533		$	(6,083	)	$	(127,625	)	$	760,995

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

ITEM 1. Financial Statements and Supplementary Data(Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	For the Three Months Ended
	March 31,
	2018			2017
Operating Activities	(dollars in thousands)
Net income	$	23,270		$	15,888
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for credit losses	6,903			3,229
Deferred tax expense	1,097			2,506
Depreciation and amortization	2,380			2,113
Net gains on securities and other assets	(5,143		)	(1,718		)
Net amortization of premiums and discounts on securities	775			867
Income from increase in cash surrender value of bank owned life insurance	(1,494		)	(1,292		)
Increase in interest receivable	(620		)	(338		)
Mortgage loans originated for sale	(38,218		)	(27,580		)
Proceeds from sale of mortgage loans	46,134			29,829
(Decrease) increase in interest payable	(235		)	571
Increase in income taxes payable	3,557			4,354
Other-net	(17,004		)	(991		)
Net cash provided by operating activities	21,402			27,438
Investing Activities
Transactions with securities held to maturity:
Proceeds from maturities and redemptions	11,335			10,826
Purchases	—			(25,140		)
Transactions with securities available for sale:
Proceeds from sales	—			—
Proceeds from maturities and redemptions	44,067			33,125
Purchases	(130,012		)	(85,220		)
Purchases of FHLB stock	(13,491		)	(12,883		)
Proceeds from the redemption of FHLB stock	18,928			10,712
Proceeds from sale of loans	6,647			—
Proceeds from sale of other assets	1,141			1,631
Restricted cash	—			(21,284		)
Net decrease (increase) in loans	16,012			(37,514		)
Purchases of other assets	(154		)	(410		)
Purchases of premises and equipment	(1,820		)	(1,531		)
Net cash used in investing activities	(47,347		)	(127,688		)
Financing Activities
Net increase in federal funds purchased	6,000			—
Net (decrease) increase in other short-term borrowings	(125,450		)	93,658
Net increase in deposits	122,849			22,385
Repayments of other long-term debt	(150		)	(145		)
Repayments of capital lease obligation	(92		)	—
Dividends paid	(7,803		)	(7,119		)
Purchase of treasury stock	(1,079		)	(1,102		)
Net cash (used in) provided by financing activities	(5,725		)	107,677
Net (decrease) increase in cash and cash equivalents	(31,670		)	7,427
Cash and cash equivalents at January 1	107,292			115,677
Cash and cash equivalents at March 31	$	75,622		$	123,104

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 Basis of Presentation

The accounting and reporting policies of First Commonwealth Financial Corporation and its subsidiaries (“First Commonwealth” or the “Company”) conform with generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the financial statements and accompanying notes. Actual realized amounts could differ from those estimates. In the opinion of management, the unaudited interim condensed consolidated financial statements include all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of First Commonwealth’s financial position, results of operations, comprehensive income, cash flows and changes in shareholders’ equity as of and for the periods presented.

The results of operations for the three months endedMarch 31, 2018 are not necessarily indicative of the results that may be expected for the full year of 2018. These interim financial statements should be read in conjunction with First Commonwealth’s 2017 Annual Report on Form 10-K.

Adoption of New Accounting Standards

On January 1, 2018, First Commonwealth adopted ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") and all subsequent amendments to the ASU, which creates a single framework for recognizing revenue from contracts with customers that fall within its scope and revises when it is appropriate to recognize a gain(loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company's revenues come from interest income and other sources, including loans and securities, that are outside the scope of ASC 606. The Company's services that fall within the scope of ASC 606 are presented within non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include trust income, service charges on deposits, insurance and retail brokerage commissions, interchange fees and gain(loss) on other real estate owned ("OREO"). Refer to Note 13, "Revenue Recognition" for further discussion on the Company's accounting policies for revenue sources within the scope of ASC 606. The Company adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 while prior period amounts continue to be reported in accordance with legacy GAAP. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded.

On January 1, 2018, First Commonwealth elected to adopt ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)." As part of this adoption, First Commonwealth has elected to reclassify the income tax effects resulting from tax reform from accumulated other comprehensive income to retained earnings on a portfolio basis. ASU 2018-02 provides for the reclassification of the stranded tax effects resulting from the Tax Cuts and Jobs Act. As of January 1, 2018, First Commonwealth reclassified $1.3 million from accumulated other comprehensive income to retained earnings in relation to the stranded tax effect which included accumulated other comprehensive income recognized on available-for-sale investment securities, interest rate swaps and other post-retirement benefits. This reclassification is shown as an adjustment to the beginning of the year balances and can be seen in the Condensed Consolidated Statements of Changes in Shareholders' Equity.

In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, and when that assessment indicates that impairment exists, requiring the entity to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a

8

valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The adoption of ASU No. 2016-01 on January 1, 2018 did not have a material impact on the Company’s Consolidated Financial Statements. In accordance with this ASU, and as reflected in Note 10, "Fair Values of Assets and Liabilities", the Company measured the fair value of its loan portfolio as of March 31, 2018 using an exit price notion.

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.

Note 2 Supplemental Comprehensive Income Disclosures

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

	For the Three Months Ended March 31,
	2018								2017
	Pretax Amount			Tax (Expense) Benefit		Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount
	(dollars in thousands)
Unrealized (losses) gains on securities:
Unrealized holding (losses) gains on securities arising during the period	$	(3,982	)	$	837	$	(3,145	)	$	2,543		$	(890	)	$	1,653
Reclassification adjustment for gains on securities included in net income	(2,840		)	596		(2,244		)	(652		)	228			(424		)
Total unrealized (losses) gains on securities	(6,822		)	1,433		(5,389		)	1,891			(662		)	1,229
Unrealized losses on derivatives:
Unrealized holding losses on derivatives arising during the period	(130		)	27		(103		)	(516		)	181			(335		)
Reclassification adjustment for losses on derivatives included in net income	—			—		—			78			(28		)	50
Total unrealized losses on derivatives	(130		)	27		(103		)	(438		)	153			(285		)
Total other comprehensive (loss) income	$	(6,952	)	$	1,460	$	(5,492	)	$	1,453		$	(509	)	$	944

The following table details the change in components of OCI for the three months endedMarch 31:

	2018											2017
	Securities Available for Sale			Post-Retirement Obligation		Derivatives			Accumulated Other Comprehensive Income (Loss)			Securities Available for Sale			Post-Retirement Obligation		Derivatives			Accumulated Other Comprehensive Income (Loss)
	(dollars in thousands)
Balance at December 31	$	(6,166	)	$	299	$	(306	)	$	(6,173	)	$	(7,455	)	$	225	$	203		$	(7,027	)
Cumulative effect of adoption of ASU 2018-02	(1,344		)	—		—			(1,344		)	—			—		—			—
Balance at January 1	(7,510		)	299		(306		)	(7,517		)	(7,455		)	225		203			(7,027		)
Other comprehensive (loss) income before reclassification adjustment	(3,145		)	—		(103		)	(3,248		)	1,653			—		(335		)	1,318
Amounts reclassified from accumulated other comprehensive (loss) income	(2,244		)	—		—			(2,244		)	(424		)	—		50			(374		)
Net other comprehensive (loss) income during the period	(5,389		)	—		(103		)	(5,492		)	1,229			—		(285		)	944
Balance at March 31	$	(12,899	)	$	299	$	(409	)	$	(13,009	)	$	(6,226	)	$	225	$	(82	)	$	(6,083	)

9

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 3 Supplemental Cash Flow Disclosures

The following table presents information related to cash paid during the period for interest, as well as detail on non-cash investing and financing activities for the three months endedMarch 31:

	2018			2017
	(dollars in thousands)
Cash paid during the period for:
Interest	$	7,072		$	3,832
Income taxes	28			1,039
Non-cash investing and financing activities:
Loans transferred to other real estate owned and repossessed assets	1,186			958
Loans transferred from held to maturity to held for sale	8,019			3,613
Gross (decrease) increase in market value adjustment to securities available for sale	(6,822		)	1,892
Gross decrease in market value adjustment to derivatives	(131		)	(438		)
Investments committed to purchase, not settled	—			498
Noncash treasury stock reissuance	2,257			2,258
Proceeds from death benefit on bank-owned life insurance not received	2,306			—

Note 4 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 computations:

	For the Three Months Ended March 31,
	2018		2017
Weighted average common shares issued	113,914,902		105,563,455
Average treasury stock shares	(16,369,144	)	(16,527,204	)
Average deferred compensation shares	(37,411	)	—
Average unearned nonvested shares	(75,210	)	(106,359	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share	97,433,137		88,929,892
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share	130,614		57,779
Additional common stock equivalents (deferred compensation) used to calculate diluted earnings per share	37,411		—
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share	97,601,162		88,987,671

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 three months endedMarch 31 because to do so would have been antidilutive.

	2018					2017
		Price Range					Price Range
	Shares	From		To		Shares	From		To
Restricted Stock	37,298	$	9.84	$	14.49	13,750	$	13.96	$	13.96
Restricted Stock Units	43,067	$	13.25	$	15.83	24,375	$	15.09	$	15.09

10

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 5 Commitments and Contingent Liabilities

Commitments and Letters of Credit

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 of 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:

	March 31, 2018		December 31, 2017
	(dollars in thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,782,701	$	1,840,180
Financial standby letters of credit	17,636		17,946
Performance standby letters of credit	21,328		20,472
Commercial letters of credit	1,055		1,149

The notional amounts outstanding as of March 31, 2018 include amounts issued in 2018 of $37 thousand in financial standby letters of credit and $0.4 million in performance standby letters of credit. There were no commercial letters of credit issued in 2017. A liability of $0.2 million has been recorded as of March 31, 2018 and December 31, 2017, 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 related to these commitments resulted in the recording of a liability of $5.2 million as of March 31, 2018 and December 31, 2017. This liability is reflected in "Other liabilities" in the Condensed 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.

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 March 31, 2018, 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 $1 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

11

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Pennsylvania Fair Credit Extension Uniformity Act. First Commonwealth Financial Corporation, First Commonwealth Bank, the plaintiffs, the plaintiffs’ counsel and First Commonwealth’s liability insurer have entered into a Class Action Settlement Agreement and Release in which, among other things, First Commonwealth and its insurer have agreed to pay certain amounts into a settlement fund to be distributed among the class members and class counsel, First Commonwealth has agreed to satisfy the remaining deficiency balances of the class members and request that credit reporting agencies delete the tradeline relating to the repossession from each class member’s credit report, and the class members will release all claims against First Commonwealth and its insurer. The Court granted preliminary approval of the settlement on March 29, 2018, and has scheduled a hearing on July 23, 2018 to consider final approval of the settlement. The estimated cost of the settlement to First Commonwealth 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 6 Investment Securities

Securities Available for Sale

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

	March 31, 2018									December 31, 2017
	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	$	10,100	$	646	$	(81	)	$	10,665	$	10,556	$	789	$	(7	)	$	11,338
Mortgage-Backed Securities – Commercial	73,389		—		(1,252		)	72,137		24,611		—		(462		)	24,149
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	681,343		1,913		(18,468		)	664,788		632,422		2,622		(9,489		)	625,555
Other Government-Sponsored Enterprises	1,100		—		(2		)	1,098		1,098		—		(1		)	1,097
Obligations of States and Political Subdivisions	27,086		121		(46		)	27,161		27,083		327		—			27,410
Corporate Securities	20,898		542		(214		)	21,226		15,907		590		(4		)	16,493
Pooled Trust Preferred Collateralized Debt Obligations	13,602		1,252		(722		)	14,132		27,499		526		(4,379		)	23,646
Total Debt Securities	827,518		4,474		(20,785		)	811,207		739,176		4,854		(14,342		)	729,688
Equities	1,670		—		—			1,670		1,670		—		—			1,670
Total Securities Available for Sale	$	829,188	$	4,474	$	(20,785	)	$	812,877	$	740,846	$	4,854	$	(14,342	)	$	731,358

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.

12

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The amortized cost and estimated fair value of debt securities available for sale at March 31, 2018, by contractual maturity, are shown below.

	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	5,099	$	5,073
Due after 1 but within 5 years	15,727		15,541
Due after 5 but within 10 years	26,337		26,409
Due after 10 years	15,523		16,594
	62,686		63,617
Mortgage-Backed Securities (a)	764,832		747,590
Total Debt Securities	$	827,518	$	811,207

(a) Mortgage-Backed Securities include an amortized cost of $83.5 million and a fair value of $82.8 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $681.3 million and a fair value of $664.8 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 three months endedMarch 31:

	2018		2017
	(dollars in thousands)
Proceeds from sales	$	—	$	—
Gross gains (losses) realized:
Sales Transactions:
Gross gains	$	—	$	—
Gross losses	—		—
	—		—
Maturities and impairment
Gross gains	2,840		652
Gross losses	—		—
	2,840		652
Net gains and impairment	$	2,840	$	652

Gross gains from maturities and impairment of $2.8 million were recognized in 2018 as a result of the successful auction call on PreSTL XIV, one of our pooled trust preferred securities. Gross gains of $0.7 million were recognized in 2017 due to the early redemption of another of our trust preferred securities, PreSTL VII. Securities available for sale with an estimated fair value of $609.9 million and $569.0 million were pledged as of March 31, 2018 and December 31, 2017, respectively, to secure public deposits and for other purposes required or permitted by law.

13

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Securities Held to Maturity

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

	March 31, 2018									December 31, 2017
	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	$	3,895	$	—	$	(109	)	$	3,786	$	3,925	$	—	$	(14	)	$	3,911
Mortgage-Backed Securities- Commercial	57,762		—		(2,224		)	55,538		58,249		—		(1,394		)	56,855
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	294,205		—		(7,645		)	286,560		305,126		10		(2,552		)	302,584
Mortgage-Backed Securities – Commercial	13,859		—		(299		)	13,560		14,056		—		(71		)	13,985
Obligations of States and Political Subdivisions	40,509		38		(660		)	39,887		40,540		335		(161		)	40,714
Debt Securities Issued by Foreign Governments	200		—		(3		)	197		200		—		—			200
Total Securities Held to Maturity	$	410,430	$	38	$	(10,940	)	$	399,528	$	422,096	$	345	$	(4,192	)	$	418,249

The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2018, 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	$	86
Due after 1 but within 5 years	3,646		3,626
Due after 5 but within 10 years	35,350		34,764
Due after 10 years	1,626		1,608
	40,709		40,084
Mortgage-Backed Securities (a)	369,721		359,444
Total Debt Securities	$	410,430	$	399,528

(a) Mortgage-Backed Securities include an amortized cost of $61.7 million and a fair value of $59.3 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $308.1 million and a fair value of $300.1 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 $369.4 million and $338.3 million were pledged as of March 31, 2018 and December 31, 2017, respectively, to secure public deposits and for other purposes required or permitted by law.

14

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 7 Impairment of Investment Securities

Securities Available for Sale and Held to Maturity

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 OCI. During the three months endedMarch 31, 2018 and 2017, 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, or be required 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, 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 indicate that 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 10, “Fair Values of Assets and Liabilities,” for additional information.

The following table presents the gross unrealized losses and estimated fair values at March 31, 2018 for both available for sale and held to maturity securities by investment category and time frame for which securities have been in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	7,923	$	(190	)	$	—	$	—		$	7,923	$	(190	)
Mortgage-Backed Securities – Commercial	95,862		(2,120		)	31,813		(1,356		)	127,675		(3,476		)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	500,625		(10,277		)	378,709		(15,836		)	879,334		(26,113		)
Mortgage-Backed Securities – Commercial	13,560		(299		)	—		—			13,560		(299		)
Other Government-Sponsored Enterprises	999		(1		)	99		(1		)	1,098		(2		)
Obligations of States and Political Subdivisions	31,032		(413		)	3,489		(293		)	34,521		(706		)
Debt securities issued by foreign governments	197		(3		)	—		—			197		(3		)
Corporate Securities	18,764		(214		)	—		—			18,764		(214		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			6,362		(722		)	6,362		(722		)
Total Securities	$	668,962	$	(13,517	)	$	420,472	$	(18,208	)	$	1,089,434	$	(31,725	)

At March 31, 2018, fixed income securities issued by U.S. Government-sponsored enterprises and U.S. Government agencies comprised 83% and 12%, respectively, of total unrealized losses due to changes in market interest rates. Pooled trust preferred collateralized debt obligations accounted for 2% of the unrealized losses primarily due to the illiquid market for this investment type. At March 31, 2018, there are 155 debt securities in an unrealized loss position.

15

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table presents the gross unrealized losses and estimated fair values at December 31, 2017 by investment category and time frame for which securities have been in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	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		)
Obligation 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	)

As of March 31, 2018, our corporate securities had an amortized cost and an estimated fair value of $20.9 million and $21.2 million, respectively. 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. Corporate securities are comprised of debt for large regional banks. There were four corporate securities in an unrealized loss position as of March 31, 2018 and one corporate security in an unrealized loss position as of December 31, 2017. When unrealized losses exist on these investments, management reviews each of the issuer’s asset quality, earnings trends 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 March 31, 2018, the book value of our pooled trust preferred collateralized debt obligations totaled $13.6 million with an estimated fair value of $14.1 million, which includes securities comprised of 164 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 our 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 March 31, 2018, 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 four of our securities had excess subordination which ranged from 2% to 114% of the current performing collateral.

The following table provides information related to our pooled trust preferred collateralized debt obligations as of March 31, 2018:

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)
Pre TSL IV	Mezzanine	$	933	$	738	$	(195	)	Ba1/BB	5	—	%	113.79	%
Pre TSL VIII	Mezzanine	2,072		2,295		223			C/C	26	38.52		0.00
Pre TSL IX	Mezzanine	2,457		3,000		543			B1/C	37	27.83		19.46
Pre TSL X	Mezzanine	1,894		2,301		407			Caa1/C	41	26.29		1.73
Pre TSL XII	Mezzanine	6,151		5,624		(527		)	B3/C	64	23.39		0.00
MMCap I	Mezzanine	95		174		79			Ca/C	7	69.35		69.99
Total		$	13,602	$	14,132	$	530

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

16

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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.

During the three months ended March 31, 2018, an auction call was successfully completed on PreTSL XIV. This resulted in the security being called at par providing a gain of $2.8 million.

On a quarterly basis we evaluate our debt securities for other-than-temporary impairment. During the three months endedMarch 31, 2018 and 2017, 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 March 31, 2018. 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 164 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 will 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 March 31, 2018, 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.

17

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 that 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 allow 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 March 31, 2018, indicates that no credit-related other-than-temporary impairment has occurred on our pooled trust preferred securities during the three months endedMarch 31, 2018. Based upon the analysis performed by management, it is probable that two of our pooled trust preferred securities will experience principal and interest shortfalls and therefore appropriate other-than-temporary charges were recorded in prior periods. These securities are identified in the previous table with 0.00% “Excess Subordination as a % of Current Performing Collateral.” For the remaining securities listed in that table, our analysis as of March 31, 2018 indicates it is probable that we will collect all contractual principal and interest payments. For three of those securities, PreTSL IX, PreTSL X, 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 March 31, 2018, 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 19% to 101% 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 following table provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold:

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands)
Balance, beginning (a)	$	12,208		$	17,056
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)	(147		)	(228		)
Reduction for debt securities called during the period	(2,302		)	—
Balance, ending	$	9,759		$	16,828

(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 in interest income during the period.

In the first three months of 2018 and 2017, no other-than-temporary impairment charges were recorded on equity securities. On a quarterly basis, management evaluates equity securities for other-than-temporary impairment by reviewing 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. As of March 31, 2018 and 2017, there were no equity securities in an unrealized loss position.

Other Investments

As a member of the Federal Home Loan Bank ("FHLB"), First Commonwealth is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. The level of stock required to be held is dependent on the amount of First Commonwealth's mortgage-related assets and outstanding borrowings with the FHLB. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. As of March 31, 2018 and

18

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

December 31, 2017, our FHLB stock totaled $24.4 million and $29.8 million, respectively, and is included in “Other investments” on the Condensed Consolidated Statements of Financial Condition.

FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. First Commonwealth evaluates impairment quarterly and has concluded that the par value of its investment in FHLB stock will be recovered. Accordingly, no impairment charge was recorded on these securities during the three months ended March 31, 2018.

Note 8 Loans and Allowance for Credit Losses

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

	March 31, 2018						December 31, 2017
	Originated		Acquired		Total		Originated		Acquired		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,093,192	$	38,402	$	1,131,594	$	1,122,741	$	40,642	$	1,163,383
Real estate construction	245,841		1,120		246,961		242,905		5,963		248,868
Residential real estate	1,220,989		213,634		1,434,623		1,206,119		220,251		1,426,370
Commercial real estate	1,901,609		125,463		2,027,072		1,892,185		126,911		2,019,096
Loans to individuals	535,484		5,571		541,055		543,411		6,248		549,659
Total loans	$	4,997,115	$	384,190	$	5,381,305	$	5,007,361	$	400,015	$	5,407,376

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 Company’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. Movement between these rating categories provides a predictive measure of credit losses and therefore assists 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.

19

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables represent our credit risk profile by creditworthiness:

	March 31, 2018
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated loans
Pass	$	1,020,603	$	245,841	$	1,209,290	$	1,871,008	$	535,240	$	4,881,982
Non-Pass
OAEM	31,480		—		1,574		7,748		—		40,802
Substandard	34,140		—		10,125		22,853		244		67,362
Doubtful	6,969		—		—		—		—		6,969
Total Non-Pass	72,589		—		11,699		30,601		244		115,133
Total	$	1,093,192	$	245,841	$	1,220,989	$	1,901,609	$	535,484	$	4,997,115
Acquired loans
Pass	$	32,439	$	1,120	$	211,361	$	122,411	$	5,554	$	372,885
Non-Pass
OAEM	5,486		—		745		1,251		—		7,482
Substandard	477		—		1,528		1,801		17		3,823
Doubtful	—		—		—		—		—		—
Total Non-Pass	5,963		—		2,273		3,052		17		11,305
Total	$	38,402	$	1,120	$	213,634	$	125,463	$	5,571	$	384,190

	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

20

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Portfolio Risks

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

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 March 31, 2018. 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 March 31, 2018 and December 31, 2017. 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.

	March 31, 2018
	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	$	2,163	$	23	$	168	$	24,298	$	26,652	$	1,066,540	$	1,093,192
Real estate construction	—		—		—		—		—		245,841		245,841
Residential real estate	2,849		996		649		6,187		10,681		1,210,308		1,220,989
Commercial real estate	1,751		783		304		5,675		8,513		1,893,096		1,901,609
Loans to individuals	1,369		463		768		244		2,844		532,640		535,484
Total	$	8,132	$	2,265	$	1,889	$	36,404	$	48,690	$	4,948,425	$	4,997,115
Acquired loans
Commercial, financial, agricultural and other	$	11	$	—	$	26	$	411	$	448	$	37,954	$	38,402
Real estate construction	—		—		—		—		—		1,120		1,120
Residential real estate	119		110		21		718		968		212,666		213,634
Commercial real estate	—		—		—		1,000		1,000		124,463		125,463
Loans to individuals	66		11		19		17		113		5,458		5,571
Total	$	196	$	121	$	66	$	2,146	$	2,529	$	381,661	$	384,190

21

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	December 31, 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

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 on 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 becomes 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 for repayment of 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 also 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.

At March 31, 2018 and December 31, 2017, there were no nonaccrual loans held for sale. There were no gains or losses recognized on sales of impaired loans during the three months endedMarch 31, 2018 and 2017.

22

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of March 31, 2018 and December 31, 2017. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired. Average balances are calculated using month-end balances of the loans for the period reported and are included in the table below based on their period-end allowance position.

	March 31, 2018						December 31, 2017
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(dollars in thousands)
Originated loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	4,791	$	9,559			$	5,548	$	12,153
Real estate construction	—		—				—		—
Residential real estate	10,129		12,000				10,625		12,470
Commercial real estate	4,624		5,038				5,155		5,489
Loans to individuals	339		379				347		383
Subtotal	19,883		26,976				21,675		30,495
With an allowance recorded:
Commercial, financial, agricultural and other	28,615		28,795		$	9,045	16,866		21,094		$	3,478
Real estate construction	—		—		—		—		—		—
Residential real estate	808		846		277		456		478		107
Commercial real estate	5,753		5,763		2,139		954		954		128
Loans to individuals	—		—		—		—		—		—
Subtotal	35,176		35,404		11,461		18,276		22,526		3,713
Total	$	55,059	$	62,380	$	11,461	$	39,951	$	53,021	$	3,713

23

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	March 31, 2018						December 31, 2017
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(dollars in thousands)
Acquired loans
With no related allowance recorded:
Commercial, financial, agricultural and other	$	411	$	424			$	436	$	449
Real estate construction	—		—				—		—
Residential real estate	677		1,003				666		965
Commercial real estate	891		1,811				940		1,842
Loans to individuals	17		17				17		17
Subtotal	1,996		3,255				2,059		3,273
With an allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—		$	—
Real estate construction	—		—		—		—		—		—
Residential real estate	93		122		10		93		122		4
Commercial real estate	109		124		2		137		150		29
Loans to individuals	—		—		—		—		—		—
Subtotal	202		246		12		230		272		33
Total	$	2,198	$	3,501	$	12	$	2,289	$	3,545	$	33

	For the Three Months Ended March 31,
	2018								2017
	Originated Loans				Acquired Loans				Originated Loans				Acquired Loans
	Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other	$	8,130	$	10	$	411	$	—	$	12,034	$	38	$	—	$	—
Real estate construction	—		—		—		—		—		—		—		—
Residential real estate	10,401		63		678		1		11,422		74		241		—
Commercial real estate	5,510		31		907		—		5,949		54		162		—
Loans to individuals	354		2		17		—		338		2		—		—
Subtotal	24,395		106		2,013		1		29,743		168		403		—
With an allowance recorded:
Commercial, financial, agricultural and other	17,720		66		—		—		12,787		26		—		—
Real estate construction	—		—		—		—		—		—		—		—
Residential real estate	706		—		93		—		334		1		65		—
Commercial real estate	1,960		1		118		—		1,111		7		—		—
Loans to individuals	—		—		—		—		—		—		—		—
Subtotal	20,386		67		211		—		14,232		34		65		—
Total	$	44,781	$	173	$	2,224	$	1	$	43,975	$	202	$	468	$	—

24

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Unfunded commitments related to nonperforming loans were $4.2 million at March 31, 2018 and $2.4 million at December 31, 2017. After consideration of the requirements to draw and available collateral related to these commitments, a reserve of $0.4 million and $0.2 million was established for these off balance sheet exposures at March 31, 2018 and December 31, 2017, 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:

	March 31, 2018		December 31, 2017
	(dollars in thousands)
Troubled debt restructured loans
Accrual status	$	18,707	$	11,563
Nonaccrual status	10,233		11,222
Total	$	28,940	$	22,785
Commitments
Letters of credit	$	60	$	60
Unused lines of credit	1,778		54
Total	$	1,838	$	114

The following tables provide detail, including specific reserves and reasons for modification, related to loans identified as troubled debt restructurings:

	For the Three Months Ended March 31, 2018
		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	2	$	4,709	$	—	$	162	$	4,871	$	3,942	$	531
Residential real estate	11	20		75		346		441		404		17
Commercial real estate	1	3,017		—		—		3,017		2,994		227
Loans to individuals	4	—		28		30		58		53		—
Total	18	$	7,746	$	103	$	538	$	8,387	$	7,393	$	775

25

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	For the Three Months Ended March 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	1	$	—	$	42	$	—	$	42	$	38	$	—
Residential real estate	7	129		101		306		536		504		—
Commercial real estate	2	179		—		16		195		193		—
Loans to individuals	3	—		14		30		44		43		—
Total	13	$	308	$	157	$	352	$	817	$	778	$	—

The troubled debt restructurings included in the above tables are also included in the impaired loan tables provided earlier in this note. Loans defined as modified due to a change in rate may include loans that were modified for a change in rate as well as a re-amortization of the principal and an extension of the maturity. For the three months endedMarch 31, 2018 and 2017, $0.1 million and $0.2 million, respectively, of total rate modifications represent loans with modifications to the rate as well as payment as a result of re-amortization. For both 2018 and 2017 the changes in loan balances between the pre-modification balance and the post-modification balance are due to customer payments.

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 loans that were restructured within the past twelve months and that were considered to be in default during the three months endedMarch 31:

	2018			2017
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars in thousands)
Commercial, financial, agricultural and other	1	$	940	—	$	—
Total	1	$	940	—	$	—

26

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables provide detail related to the allowance for credit losses:

	For the Three Months Ended March 31, 2018
	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	$	23,418			$	1,349		$	2,753		$	17,328		$	3,404		$	48,252
Charge-offs	(290		)		—			(455		)	(168		)	(1,169		)	(2,082		)
Recoveries	256				1			75			69			195			596
Provision (credit)	4,148				(236		)	768			1,265			986			6,931
Ending balance	27,532				1,114			3,141			18,494			3,416			53,697
Acquired loans:
Beginning balance	11				—			6			29			—			46
Charge-offs	—				—			(16		)	—			(4		)	(20		)
Recoveries	7			—	6			17			—			7			37
Provision (credit)	2				(6		)	6			(27		)	(3		)	(28		)
Ending balance	20				—			13			2			—			35
Total ending balance	$	27,552			$	1,114		$	3,154		$	18,496		$	3,416		$	53,732
Ending balance: individually evaluated for impairment	$	9,045			$	—		$	287		$	2,141		$	—		$	11,473
Ending balance: collectively evaluated for impairment	18,507				1,114			2,867			16,355			3,416			42,259
Loans:
Ending balance	1,131,594				246,961			1,434,623			2,027,072			541,055			5,381,305
Ending balance: individually evaluated for impairment	33,278				—			6,853			10,360			—			50,491
Ending balance: collectively evaluated for impairment	1,098,316				246,961			1,427,770			2,016,712			541,055			5,330,814

27

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	For the Three Months Ended March 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	(3,825		)		—			(465		)	(31		)	(1,198		)	(5,519		)
Recoveries	368				54			122			117			128			789
Provision (credit)	2,184				(17		)	265			(123		)	900			3,209
Ending balance	34,701				614			2,414			6,582			4,334			48,645
Acquired loans:
Beginning balance	—				—			19			—			—			19
Charge-offs	—				—			(8		)	—			(7		)	(15		)
Recoveries	—			—	—			6			—			1			7
Provision (credit)	—				—			14			—			6			20
Ending balance	—				—			31			—			—			31
Total ending balance	$	34,701			$	614		$	2,445		$	6,582		$	4,334		$	48,676
Ending balance: individually evaluated for impairment	$	2,466			$	—		$	175		$	376		$	—		$	3,017
Ending balance: collectively evaluated for impairment	32,235				614			2,270			6,206			4,334			45,659
Loans:
Ending balance	1,148,460				240,122			1,217,398			1,761,101			540,880			4,907,961
Ending balance: individually evaluated for impairment	26,260				—			6,287			5,819			—			38,366
Ending balance: collectively evaluated for impairment	1,122,200				240,122			1,211,111			1,755,282			540,880			4,869,595

Note 9 Income Taxes

At March 31, 2018 and December 31, 2017, First Commonwealth had no material unrecognized tax benefits or accrued interest and penalties. If applicable, First Commonwealth will record interest and penalties as a component of noninterest expense. Federal and state returns for tax years 2014 and forward remain open for examination as of March 31, 2018.

During the first quarter of 2018, First Commonwealth adopted ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". Adoption of this ASU reclassified the stranded other accumulated income of $1.3 million resulting from the tax reform passed in December 2017 from accumulated other comprehensive income to retained earnings. There was no impact to total equity as a result of the adoption of this update. During the first quarter of 2017, First Commonwealth adopted ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718)." Adoption of this ASU resulted in a $0.1 million tax benefit.

Note 10 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 Condensed Consolidated Statements of Financial Condition or in the “Other assets” category of the Condensed 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

28

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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, corporate securities, FHLB stock, loans held for sale, interest rate derivatives (including interest rate caps, interest rate swaps 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 recorded in the Condensed Consolidated Statements of Financial Condition are comprised of FHLB stock whose estimated fair value is based on its par value. Additional information on FHLB stock is provided in Note 7, “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. Also included in loans

held for sale are commercial loans for which fair value is determined using an executed trade or market bid obtained from potential buyers.

Interest rate derivatives are reported at an estimated fair value utilizing Level 2 inputs and are included in other assets and other liabilities, and 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 11, “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 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 2018, we have not realized any losses due to a counterparty's inability to pay any uncollateralized positions.

29

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 other real estate owned and certain impaired loans.

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 is more appropriate to determine estimated fair value using a discounted cash flow analysis. Detail on our process for determining the appropriate cash flows for this analysis is provided in Note 7, “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 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 a 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).

30

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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	$	14,132		Discounted Cash Flow	Probability of default	0% - 100% (7.42%)
					Prepayment rates	0% - 71.89% (8.73%)
					Discount rates	5% - 11.5% (a)
Equities	1,670			Par Value	N/A	N/A
Impaired Loans	1,290		(b)	Reserve study	Discount rate	10.00%
					Gas per MMBTU	$2.81 - $3.35 (c)
					Oil per BBL/d	$51.59 - $59.55 (c)
	11,181		(b)	Discounted Cash Flow	Discount Rate	1.9% - 21.0%
Limited Partnership Investments	2,292			Par Value	N/A	N/A

(a) Incorporates spread over 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 - 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.

31

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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

	March 31, 2018
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities - Residential	$	—	$	10,665	$	—	$	10,665
Mortgage-Backed Securities - Commercial	—		72,137		—		72,137
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities - Residential	—		664,788		—		664,788
Other Government-Sponsored Enterprises	—		1,098		—		1,098
Obligations of States and Political Subdivisions	—		27,161		—		27,161
Corporate Securities	—		21,226		—		21,226
Pooled Trust Preferred Collateralized Debt Obligations	—		—		14,132		14,132
Total Debt Securities	—		797,075		14,132		811,207
Equities	—		—		1,670		1,670
Total Securities Available for Sale	—		797,075		15,802		812,877
Other Investments	—		24,400		—		24,400
Loans Held for Sale	—		9,759		—		9,759
Other Assets(a)	—		4,355		2,292		6,647
Total Assets	$	—	$	835,589	$	18,094	$	853,683
Other Liabilities(a)	$	—	$	4,879	$	—	$	4,879
Total Liabilities	$	—	$	4,879	$	—	$	4,879

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

	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
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

32

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the three months endedMarch 31, changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	2018
	Pooled Trust Preferred Collateralized Debt Obligations			Equities		Other Assets		Total
	(dollars in thousands)
Balance, beginning of period	$	23,646		$	1,670	$	2,143	$	27,459
Total gains or losses
Included in earnings	2,840			—		—		2,840
Included in other comprehensive income	4,529			—		—		4,529
Purchases, issuances, sales and settlements
Purchases	—			—		149		149
Issuances	—			—		—		—
Sales	—			—		—		—
Settlements	(16,883		)	—		—		(16,883		)
Transfers from Level 3	—			—		—		—
Transfers into Level 3	—			—		—		—
Balance, end of period	$	14,132		$	1,670	$	2,292	$	18,094

	2017
	Pooled Trust Preferred Collateralized Debt Obligations			Equities		Other Assets		Total
	(dollars in thousands)
Balance, beginning of period	$	33,292		$	1,670	$	930	$	35,892
Total gains or losses
Included in earnings	—			—		—		—
Included in other comprehensive income	497			—		—		497
Purchases, issuances, sales and settlements
Purchases	—			—		410		410
Issuances	—			—		—		—
Sales	—			—		—		—
Settlements	(48		)	—		—		(48		)
Transfers from Level 3	—			—				—
Transfers into Level 3	—			—		—		—
Balance, end of period	$	33,741		$	1,670	$	1,340	$	36,751

During the three months endedMarch 31, 2018 and 2017, there were no transfers between fair value Levels 1, 2 or 3. There were no gains or losses included in earnings for the periods presented that are attributable to the change in realized gains (losses) relating to assets held at March 31, 2018 and 2017.

33

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The tables below present the balances of assets measured at fair value on a nonrecurring basis at:

	March 31, 2018
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Impaired loans	$	—	$	26,546	$	19,238	$	45,784
Other real estate owned	—		3,278		—		3,278
Total Assets	$	—	$	29,824	$	19,238	$	49,062

	December 31, 2017
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Impaired loans	$	—	$	23,249	$	15,245	$	38,494
Other real estate owned	—		3,264		—		3,264
Total Assets	$	—	$	26,513	$	15,245	$	41,758

The following gain (losses) were realized on the assets measured on a nonrecurring basis:

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands)
Impaired loans	$	(7,850	)	$	(1,460	)
Other real estate owned	(30		)	(31		)
Total losses	$	(7,880	)	$	(1,491	)

Impaired loans over $100 thousand are individually reviewed to determine the amount of each loan considered to be at risk of non-collection. 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. OREO has a current carrying value of $3.0 million as of March 31, 2018 and consists primarily of residential and 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 cost to sell, as determined by valuation techniques appropriate in the circumstances.

Certain other assets and liabilities, including goodwill and core deposit 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 goodwill is provided in Note 12, “Goodwill.” There were no other assets or liabilities measured at fair value on a nonrecurring basis during the three months endedMarch 31, 2018.

FASB ASC 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.

34

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 securities available for sale and held to maturity 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 obligations values 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. 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: 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.

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

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 fair value for standby letters of credit was $0.2 million at March 31, 2018 and December 31, 2017. See Note 5, “Commitments and Contingent Liabilities,” 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 their fair values 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 type 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 is estimated by discounting the future cash flows using First Commonwealth’s estimate of the current market rate for similar types of borrowing arrangements or an announced redemption price.

35

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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

	March 31, 2018
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	65,886	$	65,886	$	65,886	$	—	$	—
Interest-bearing deposits	9,736		9,736		9,736		—		—
Securities available for sale	812,877		812,877		—		797,075		15,802
Securities held to maturity	410,430		399,528		—		399,528		—
Other investments	24,400		24,400		—		24,400		—
Loans held for sale	9,759		9,759		—		9,759		—
Loans	5,381,305		5,399,240		—		26,546		5,372,694
Financial liabilities
Deposits	5,703,522		5,701,021		—		5,701,021		—
Short-term borrowings	588,016		587,834		—		587,834		—
Subordinated debt	72,167		70,114		—		—		70,114
Long-term debt	8,011		8,237		—		8,237		—
Capital lease obligation	7,498		7,498		—		7,498		—

	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		—
Subordinated debt	72,167		65,785		—		—		65,785
Long-term debt	8,161		8,548		—		8,548		—
Capital Lease Obligation	7,590		7,590		—		7,590		—

36

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 11 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 37 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 twelve 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 that provide 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 two interest rate swap contracts that were designated as cash flow hedges. The interest rate swaps have a total notional amount of $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 $115.0 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 Condensed Consolidated Statements of Income. For the three months endedMarch 31, 2018, there was a $0.1 million negative impact on interest income as a result of these interest rate swaps, respectively. 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 Condensed Consolidated Statements of Income as the income on the hedged items. The cash flow hedges were highly effective at March 31, 2018 and December 31, 2017, 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 Condensed Consolidated Statements of Income. The impact to noninterest expense for the three months endedMarch 31, 2018 totaled $62 thousand.

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 March 31, 2018, the underlying funded mortgage loan commitments had a carrying value of $7.0 million and a fair value of $7.2 million, while the underlying unfunded

37

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

mortgage loan commitments had a notional amount of $18.3 million. 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 Condensed Consolidated Statements of Income. The impact on other noninterest expense for the three months endedMarch 31, 2018 totaled $3 thousand. At March 31, 2018 and December 31, 2017, the underlying loans had a carrying value of $7.8 million and $10.0 million, respectively, and a fair value of $7.8 million and $10.1 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:

	March 31, 2018			December 31, 2017
	(dollars in thousands)
Derivatives not Designated as Hedging Instruments
Credit value adjustment	$	(2	)	$	(791	)
Notional amount:
Interest rate derivatives	408,973			401,304
Interest rate caps	46,361			46,444
Risk participation agreements	189,491			197,660
Sold credit protection on risk participation agreements	(63,345		)	(46,170		)
Derivatives Designated as Hedging Instruments
Interest rate swaps:
Fair value adjustment	(590		)	459
Notional amount	115,000			150,000
Interest rate forwards:
Fair value adjustment	81			19
Notional amount	22,000			17,000
Foreign exchange forwards:
Fair value adjustment	(13		)	(70		)
Notional amount	7,858			10,077

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 Condensed Consolidated Statements of Income:

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands)
Non-hedging interest rate derivatives
Increase in other income	$	789		$	2
Hedging interest rate derivatives
(Decrease) increase in interest and fees on loans	(81		)	249
Increase in other expense	—			78
Hedging interest rate forwards
(Decrease) increase in other expense	(62		)	112
Hedging foreign exchange forwards
(Decrease) increase in other expense	(3		)	2

The fair value of our derivatives is included in a table in Note 10, “Fair Values of Assets and Liabilities,” in the line items

“Other assets” and “Other liabilities.”

38

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 12 Goodwill

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 that 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 March 31, 2018 and December 31, 2017 was $255.2 million and $255.4 million, respectively. Goodwill decreased $0.2 million during the three months endedMarch 31, 2018 as a result of deferred tax adjustments related to the DCB Financial ("DCB") acquisition. No impairment charges on goodwill or other intangible assets were incurred in 2018 or 2017.

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.

As of March 31, 2018, 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.

Note 13 Revenue Recognition

On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, First Commonwealth will generally be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation.

The Company adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue, therefore a cumulative effect adjustment to opening retained earnings was not necessary.

In connection with the adoption of Topic 606, First Commonwealth is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained, for example sales commission. The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost.

The Company also evaluated whether it has any significant contract balances. A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration resulting in a contract receivable or before payment is due resulting in a contract asset. A contract liability balance is an entity’s obligation to transfer a service to a customer for which the Company has already received payment from the customer. First Commonwealth’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as trust income which is based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2018 and December 31, 2017, the Company did not have any significant contract balances.

39

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with derivatives are not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust income, service charges on deposits, insurance and retail brokerage commissions, card related interchange income and gain(loss) on sale of OREO. The recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers.

Noninterest revenue streams in-scope of Topic 606 are discussed below:

Trust Income

Trust income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon a tiered scale of market value of the assets under management at month-end. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as financial planning or tax return preparation services are also available to trust customers. The Company’s performance obligation for these transactional-based services is generally satisfied and related revenue recognized, at a point in time. Payment is received shortly after services are rendered.

Service Charges on Deposit Accounts

Service charges on deposit accounts consist of fees earned from its deposit customers for transaction-based, account maintenance, overdraft services and account analysis fees. Transaction-based fees, which include services such as ATM use fees, stop payment fees, statement rendering and ACH fees are recognized at the time the transaction is executed which is the point in time the Company fulfills the customer’s request. Monthly account maintenance fees are earned over the course of the month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. The Company’s performance obligation for account analysis fees is generally satisfied, and the related revenue recognized, during the month the service is provided. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.

Insurance and Retail Brokerage Commissions

Insurance income primarily consists of commissions received from execution of personal, business and health insurance policies when acting as an agent on behalf of insurance carriers. The Company’s performance obligation is generally satisfied upon the issuance of the insurance policy. Because the Company’s contracts with the insurance carriers are generally cancellable by either party, with minimal notice, insurance commissions are recognized during the policy period as received. Also, the majority of insurance commissions are received on a monthly basis during the policy period, however some carriers pay the full annual commission to First Commonwealth at the time of policy issuance or renewal. In these cases, First Commonwealth would be required to refund any commissions it would not be entitled to as a result of cancelled or terminated policies. The Company has established a refund liability for the remaining term of the policies expected to be cancelled. The Company also receives incentive-based contingency fees from the insurance carriers. Contingency fee revenue, which totals approximately $0.3 million per year, is recognized as received due to the immaterial amount.

Retail brokerage income primarily consists of commissions received on annuity and investment product sales through a third-party service provider. The Company’s performance obligation is generally satisfied upon the issuance of the annuity policy or the execution of an investment transaction. The Company does not earn a significant amount of trailer fees on annuity sales. However, after considering the factors impacting these trailer fees, such as the uncertainty of investor behavior and changes in the market value of assets, First Commonwealth determined that it would recognize trailing fees as received because it could not reasonably estimate an amount of future trailing commissions for which collection is probable. Commissions from the third-party service provider are received on a monthly basis based upon customer activity for the month. The fees are recognized monthly with a receivable until commissions are received from the third-party service provider the following month. Because the Company acts an agent in arranging the relationship between the customer and the third-party service provider and does not control the services rendered to the customers, retail brokerage fees are presented net of related costs, including $0.4 million in commission expense.

Card Related Interchange Income

40

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Card related interchange income is primarily comprised of debit and credit card income, ATM fees and merchant services income. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Mastercard. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Card related interchange income is recognized daily as the customer transactions are settled.

Other Income

Other income includes service revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for these services are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.

Gains(loss) on sales of OREO

First Commonwealth records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When First Commonwealth finances the sale of OREO to the buyer, an assessment of whether the buyer is committed to perform their obligations under the contract is completed along with an evaluation of whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, First Commonwealth adjusts the transaction price and related gain(loss) on sale if a significant financing component is present.

41

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The impact on the condensed consolidated statements of income of adopting ASC 606 for period ending March 31 2018 is outlined below:

	For the Three Months Ended
	March 31, 2018
	As Reported		Under Legacy GAAP		Impact of ASC 606
	(dollars in thousands)
Noninterest Income
Net securities gains	$	2,840	$	2,840	$	—
Trust income	1,928		1,928		—
Service charges on deposit accounts	4,406		4,406		—
Insurance and retail brokerage commissions	1,868		2,248		(380		)
Income from bank owned life insurance	1,494		1,494		—
Gain on sale of mortgage loans	1,484		1,484		—
Gain on sale of other loans and assets	574		574		—
Card-related interchange income	4,742		4,742		—
Derivatives mark to market	789		789		—
Swap fee income (expense)	290		290		—
Other income	1,628		1,854		(226		)
Total noninterest income	22,043		22,649		(606		)
Noninterest Expense
Salaries and employee benefits	24,873		25,253		(380		)
Net occupancy expense	4,369		4,369		—
Furniture and equipment expense	3,540		3,540		—
Data processing expense	2,433		2,509		(76		)
Advertising and promotion expense	809		809		—
Pennsylvania shares tax expense	903		903		—
Intangible amortization	784		784		—
Collection and repossession expense	823		823		—
Other professional fees and services	1,007		1,007		—
FDIC insurance	776		776		—
Loss on sale or write-down of assets	197		197		—
Litigation and operational losses	179		179		—
Merger and acquisition related	337		337		—
Other operating expenses	5,843		5,993		(150		)
Total noninterest expense	$	46,873	$	47,479	(606		)
Net Impact					$	—

42

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606:

	For the Three Months Ended March 31,
	2018		2017
	(dollars in thousands)
Noninterest Income
In-scope of Topic 606:
Trust income	$	1,928	$	1,417
Service charges on deposit accounts	4,406		4,319
Insurance and retail brokerage commissions	1,868		2,082
Card-related interchange income	4,742		4,251
Gain on sale of other loans and assets	207		190
Other income	892		945
Noninterest Income (in-scope of Topic 606)	14,043		13,204
Noninterest Income (out-of-scope of Topic 606)	8,000		3,728
Total Noninterest Income	$	22,043	$	16,932

Note 14 New Accounting Pronouncements

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. Additionally, in January 2018, the FASB issued ASU No. 2018-01, "Leases (Topic 842)" providing an optional practical expedient to Topic 842. 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. Management is currently evaluating the impact of the amended guidance on First Commonwealth’s financial condition or results of operations.

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

43

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 22)" allowing a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. This amendment also requires certain disclosures about the stranded tax effects, including disclosure of the policy for releasing income tax effects from accumulated other comprehensive income and the impact if the entity elected to reclassify the income tax effects or, if the entity did not elect to reclassify, a statement that the entity did not elect to reclassify. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted this ASU as of January 1, 2018. Adoption of this ASU did not have a material impact on First Commonwealth's financial condition or results of operations.

Note 15 Subsequent Event

On May 1, 2018, the Company completed its acquisition of Garfield Acquisition Corp., and its banking subsidiary,

Foundation Bank. Foundation has approximately $207 million in assets and operates five full-service

banking offices which will operate under the First Commonwealth name.

44

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

This discussion and the related financial data are presented to assist in the understanding and evaluation of the consolidated financial condition and the results of operations of First Commonwealth Financial Corporation including its subsidiaries (“First Commonwealth”) for the three months endedMarch 31, 2018 and 2017, and should be read in conjunction with the Condensed Consolidated Financial Statements and notes thereto included in this Form 10-Q.

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 (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute “forward-looking statements” as well. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate” or words of similar meaning. These forward-looking statements are subject to significant risks, assumptions and uncertainties, and could be affected by many factors, including, but not limited to: (1) local, regional, national and international economic conditions and the impact they may have on First Commonwealth and its customers; (2) volatility and disruption in national and international financial markets; (3) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (4) inflation, interest rate, commodity price, securities market and monetary fluctuations; (5) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth or its customers must comply; (6) the soundness of other financial institutions; (7) political instability; (8) impairment of First Commonwealth’s goodwill or other intangible assets; (9) acts of God or of war or terrorism; (10) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (11) changes in consumer spending, borrowings and savings habits; (12) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (13) technological changes; (14) acquisitions and integration of acquired businesses; (15) First Commonwealth’s ability to attract and retain qualified employees; (16) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (17) the ability to increase market share and control expenses; (18) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (19) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (20) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (21) other risks and uncertainties described in this report and in the other reports that we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this report. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Explanation of Use of Non-GAAP Financial Measure

In addition to the results of operations presented in accordance with generally accepted accounting principles (“GAAP”), First Commonwealth management uses, and this quarterly report contains or references, certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. We believe this non-GAAP financial measure provides information useful to investors in understanding our underlying operational performance and our business and performance trends as it facilitates comparison with the performance of others in the financial services industry. Although we believe that this non-GAAP financial measure enhances investors’ understanding of our business and performance, this non-GAAP financial measure should not be considered an alternative to GAAP.

We believe the presentation of net interest income on a fully taxable equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. Interest income per the Condensed Consolidated Statements of Income is reconciled to net interest income adjusted to a fully taxable equivalent basis on pages 48 for the three months endedMarch 31, 2018 and 2017, respectively.

45

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

Selected Financial Data

The following selected financial data should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations, which follows, and with the Condensed Consolidated Financial Statements and related notes.

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands, except per share data)
Net Income	$	23,270		$	15,888
Per Share Data:
Basic Earnings per Share	$	0.24		$	0.18
Diluted Earnings per Share	0.24			0.18
Cash Dividends Declared per Common Share	0.08			0.08
Average Balance:
Total assets	$	7,300,382		$	6,708,817
Total equity	892,618			757,077
End of Period Balance:
Net loans (1)	$	5,337,332		$	4,868,873
Total assets	7,320,767			6,808,977
Total deposits	5,703,522			4,969,729
Total equity	899,349			760,995
Key Ratios:
Return on average assets	1.29		%	0.96		%
Return on average equity	10.57		%	8.51		%
Dividends payout ratio	33.33		%	44.44		%
Average equity to average assets ratio	12.23		%	11.28		%
Net interest margin	3.69		%	3.50		%
Net loans to deposits ratio	93.58		%	97.97		%

⁽¹⁾ Includes loans held for sale.

Results of Operations

Three Months EndedMarch 31, 2018 Compared to Three Months EndedMarch 31, 2017

Net Income

For the three months endedMarch 31, 2018, First Commonwealth had net income of $23.3 million, or $0.24 diluted earnings per share, compared to net income of $15.9 million, or $0.18 diluted earnings per share, in the three months endedMarch 31, 2017. Growth in net income is primarily the result of increases in net interest income and noninterest income more than offsetting increases in noninterest expense and provision for credit losses. Also contributing to the increase in net income is a decrease in the statutory tax rate from 35% in 2017 to 21% in 2018.

For the three months endedMarch 31, 2018, the Company’s return on average equity was 10.57% and its return on average assets was 1.29%, compared to 8.51% and 0.96%, respectively, for the three months endedMarch 31, 2017.

Net Interest Income

Net interest income, on a fully taxable equivalent basis, was $60.2 million in the first three months of 2018, compared to $52.8 million for the same period in 2017. This increase was due to both growth in average interest earning assets of $483.6 million and a 33 basis point increase in the yield on interest earning assets. Net interest income comprises a majority of our operating revenue (net interest income before provision expense plus noninterest income), at 73% and 75% for the three months endedMarch 31, 2018 and 2017, respectively.

The net interest margin, on a fully taxable equivalent basis, was 3.69% and 3.50% for the three months endedMarch 31, 2018 and March 31, 2017, respectively. The 19 basis point increase in the net interest margin is attributable to both changes in the level of interest rates and the amount and composition of interest-earning assets and interest-bearing liabilities.

46

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

The taxable equivalent yield on interest-earning assets was 4.11% for the three months endedMarch 31, 2018, an increase of 33 basis points compared to the 3.78% yield for the same period in 2017. This increase is largely due to an increase in the loan portfolio yield, which improved by 36 basis points when compared to the three months endedMarch 31, 2017. Contributing to this increase was the yield on our adjustable and variable rate commercial loan portfolios, which increased 63 basis points largely due to the Federal Reserve increasing short term interest rates four times since December 2016. In addition, the yield on the investment portfolio increased 3 basis points in comparison to the prior year. This increase can be attributed to investment security runoff being replaced with higher yielding investments. Investment portfolio purchases during the three months endedMarch 31, 2018 have been primarily in mortgage-related assets with approximate durations of 30-64 months and corporate securities with durations of approximately five years. The mortgage-related investments have monthly principal payments that will provide for reinvestment opportunities at higher rates if interest rates rise.

The cost of interest-bearing liabilities increased to 0.56% for the three months endedMarch 31, 2018, from 0.38% for the same period in 2017, primarily due to an increase in the cost of short-term borrowings. Deposits acquired in our recent acquisitions, as well as organic growth in consumer checking and savings deposits contributed to a decline in average short-term borrowings of $258.9 million for the three months endedMarch 31, 2018 compared to the same period in 2017. Higher market interest rates resulted in the cost of short-term borrowings increasing 62 basis points in comparison to the same period last year.

For the three months endedMarch 31, 2018, changes in interest rates positively impacted net interest income by $2.3 million when compared with the same period in 2017. The higher yield on interest-earning assets positively impacted net interest income by $4.9 million, while the increase in the cost of interest-bearing liabilities negatively impacted net interest income by $2.7 million.

Changes in the volume of interest-earning assets and interest-bearing liabilities positively impacted net interest income by $5.1 million in the three months endedMarch 31, 2018, as compared to the same period in 2017. Higher levels of interest-earning assets resulted in an increase of $4.9 million in interest income, and changes in the volume of interest-bearing liabilities decreased interest expense by $0.2 million, primarily as the result of decreases in short-term borrowings. Average earning assets for the three months endedMarch 31, 2018 increased $483.6 million, or 7.9%, compared to the same period in 2017. Average loans for the comparable period increased $496.9 million, or 10.1%.

Net interest income also benefited from a $202.1 million increase in average net free funds at March 31, 2018 as compared to March 31, 2017. 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 an increase of $169.3 million, or 13.8%, in noninterest-bearing demand deposit average balances. The increase in these deposits is largely impacted by deposits acquired from the acquisition of DCB in April 2017. Additionally, average time deposits for the three months endedMarch 31, 2018 increased by $60.5 million at higher costs compared to the comparable period in 2017, decreasing net interest income by $0.4 million. Increases in market interest rates negatively impacted net interest income by $2.7 million, while changes in the mix of interest-bearing liabilities had a $0.2 million positive impact.

The following table reconciles interest income in the Condensed Consolidated Statements of Income to net interest income adjusted to a fully taxable equivalent basis for the three months endedMarch 31:

	2018		2017
	(dollars in thousands)
Interest income per Condensed Consolidated Statements of Income	$	66,499	$	56,179
Adjustment to fully taxable equivalent basis	493		988
Interest income adjusted to fully taxable equivalent basis (non-GAAP)	66,992		57,167
Interest expense	6,814		4,349
Net interest income adjusted to fully taxable equivalent basis (non-GAAP)	$	60,178	$	52,818

47

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

The following is an analysis of the average balance sheets and net interest income on a fully taxable equivalent basis for the three months endedMarch 31:

	2018							2017
	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	$	7,026		$	31	1.79	%	$	6,511		$	12	0.75	%
Tax-free investment securities	67,809			519		3.10		65,982			611		3.76
Taxable investment securities	1,123,893			7,575		2.73		1,139,532			7,470		2.66
Loans, net of unearned income (b)(c)	5,413,677			58,867		4.41		4,916,759			49,074		4.05
Total interest-earning assets	6,612,405			66,992		4.11		6,128,784			57,167		3.78
Noninterest-earning assets:
Cash	86,916							82,404
Allowance for credit losses	(50,249		)					(52,550		)
Other assets	651,310							550,179
Total noninterest-earning assets	687,977							580,033
Total Assets	$	7,300,382						$	6,708,817
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand deposits (d)	$	1,132,069		$	699	0.25	%	$	891,190		$	126	0.06	%
Savings deposits (d)	2,441,084			1,542		0.26		2,209,018			815		0.15
Time deposits	633,214			1,300		0.83		572,750			871		0.62
Short-term borrowings	672,135			2,295		1.38		930,998			1,749		0.76
Long-term debt	87,780			978		4.52		80,840			788		3.95
Total interest-bearing liabilities	4,966,282			6,814		0.56		4,684,796			4,349		0.38
Noninterest-bearing liabilities and shareholders’ equity:
Noninterest-bearing demand deposits (d)	1,400,218							1,230,939
Other liabilities	41,264							36,005
Shareholders’ equity	892,618							757,077
Total Noninterest-Bearing Funding Sources	2,334,100							2,024,021
Total Liabilities and Shareholders’ Equity	$	7,300,382						$	6,708,817
Net Interest Income and Net Yield on Interest-Earning Assets				$	60,178	3.69	%				$	52,818	3.50	%

(a) Income on interest-earning assets has been computed on a fully taxable equivalent basis using the 21% federal income tax statutory rate for the three months endedMarch 31, 2018 and the 35% federal income tax statutory rate for the three months endedMarch 31, 2017.

(b) Loan balances include held for sale and nonaccrual loans. Income on nonaccrual loans is accounted for on the cash basis.

(c) Loan income includes loan fees earned.

(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.

48

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

The following table shows the effect of changes in volumes and rates on interest income and interest expense for the three months endedMarch 31, 2018 compared with March 31, 2017:

	Analysis of Year-to-Year Changes in Net Interest Income
	Total Change			Change Due To Volume			Change Due To Rate (a)
	(dollars in thousands)
Interest-earning assets:
Interest-bearing deposits with banks	$	19		$	1		$	18
Tax-free investment securities	(92		)	17			(109		)
Taxable investment securities	105			(103		)	208
Loans	9,793			4,962			4,831
Total interest income (b)	9,825			4,877			4,948
Interest-bearing liabilities:
Interest-bearing demand deposits	573			36			537
Savings deposits	727			86			641
Time deposits	429			92			337
Short-term borrowings	546			(485		)	1,031
Long-term debt	190			68			122
Total interest expense	2,465			(203		)	2,668
Net interest income	$	7,360		$	5,080		$	2,280

(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 21% 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 for probable losses inherent 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 three months endedMarch 31:

	2018					2017
	Dollars			Percentage		Dollars			Percentage
	(dollars in thousands)
Commercial, financial, agricultural and other	$	4,150		60	%	$	2,184		68	%
Real estate construction	(242		)	(3	)	(17		)	(1	)
Residential real estate	774			11		279			9
Commercial real estate	1,238			18		(123		)	(4	)
Loans to individuals	983			14		906			28
Total	$	6,903		100	%	$	3,229		100	%

The provision for credit losses for the three months endedMarch 31, 2018increased in comparison to the three months endedMarch 31, 2017 by $3.7 million. The level of provision expense in the first three months of 2018 is primarily a result of an increase in specific reserves for commercial, financial, agricultural and other loans of $5.6 million related to a local commercial and industrial loan relationship. In addition, specific reserves on commercial real estate loans increased $2.0 million primarily due to one loan secured by an office building. The specific reserves recognized for both of these categories were offset by the Company's periodic assessment of the allowance for loan loss methodology, the current lending environment, and associated risks for each portfolio. Net charge-offs in the loans to individuals were $1.0 million for three months endedMarch 31, 2018, with $0.5 million related to indirect auto loans and $0.3 million to personal lines of credit. The majority of the provision expense related to residential real estate can be attributed to growth in the portfolio in comparison to December 31, 2017.

49

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

The majority of the 2017 provision expense is attributable to commercial, financial, agricultural and other loans as the result of $3.4 million in charge-offs recognized on two commercial loan relationships. Of this total, $1.9 million was recognized on a commercial loan that was transferred to held for sale and subsequently sold in the second quarter of 2017.

The allowance for credit losses was $53.7 million, or 1.00%, of total loans outstanding and 1.08% of total originated loans outstanding at March 31, 2018, compared to $48.3 million, or 0.89%, and 0.96%, respectively, at December 31, 2017 and $48.7 million, or 0.99%, and 1.01%, respectively, at March 31, 2017. Nonperforming loans as a percentage of total loans increased to 1.06% at March 31, 2018 from 0.78% at December 31, 2017 and 1.01% as of March 31, 2017. The allowance to nonperforming loan ratio was 93.84%, 114.34% and 105.20% as of March 31, 2018, December 31, 2017 and March 31, 2017, respectively.

Below is an analysis of the consolidated allowance for credit losses for the three months endedMarch 31, 2018 and 2017 and the year-ended December 31, 2017:

	March 31, 2018		March 31, 2017		December 31, 2017
	(dollars in thousands)
Balance, beginning of period	$	48,298	$	50,185	$	50,185
Loans charged off:
Commercial, financial, agricultural and other	290		3,825		6,634
Real estate construction	—		—		—
Residential real estate	471		473		1,287
Commercial real estate	168		31		340
Loans to individuals	1,173		1,205		4,248
Total loans charged off	2,102		5,534		12,509
Recoveries of loans previously charged off:
Commercial, financial, agricultural and other	263		368		3,901
Real estate construction	7		54		470
Residential real estate	92		128		371
Commercial real estate	69		117		278
Loans to individuals	202		129		515
Total recoveries	633		796		5,535
Net credit losses	1,469		4,738		6,974
Provision charged to expense	6,903		3,229		5,087
Balance, end of period	$	53,732	$	48,676	$	48,298

50

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

Noninterest Income

The following table presents the components of noninterest income for the three months endedMarch 31:

	2018		2017			$ Change			% Change
	(dollars in thousands)
Noninterest Income:
Trust income	$	1,928	$	1,417		$	511		36	%
Service charges on deposit accounts	4,406		4,319			87			2
Insurance and retail brokerage commissions	1,868		2,082			(214		)	(10	)
Income from bank owned life insurance	1,494		1,292			202			16
Card-related interchange income	4,742		4,251			491			12
Swap fee income (expense)	290		(73		)	363			(497	)
Other income	1,628		1,706			(78		)	(5	)
Subtotal	16,356		14,994			1,362			9
Net securities gains	2,840		652			2,188			336
Gain on sale of mortgage loans	1,484		977			507			52
Gain on sale of other loans and assets	574		307			267			87
Derivatives mark to market	789		2			787			39,350
Total noninterest income	$	22,043	$	16,932		$	5,111		30	%

Noninterest income, excluding net securities gains, gain on sale of loans and other assets and the derivatives mark to market, increased$1.4 million for the first three months of 2018 compared to 2017. Service charges on deposit accounts increased $0.1 million, primarily due to deposit accounts acquired in the acquisition of DCB in April 2017. Card-related interchange income increased $0.5 million during the first three months of 2018 compared to 2017, of which $0.3 million is attributable to the DCB acquisition. Trust income increased $0.5 million, of which $0.3 million can be attributed to accounts obtained in the DCB acquisition. Swap fee income compared to 2017 increased $0.4 million due to an increase in the number of interest rate swaps entered into for our commercial loan customers during the first three months of 2018 compared to the same period in the prior year. Insurance and retail brokerage commissions decreased by $0.2 million as a result of $0.4 million in producer commission expense which is netted against revenue in 2018 but was included as salary expense in 2017. This change is a result of Topic 606, the new revenue recognition standard which was adopted January 1, 2018.

Total noninterest income for the three months endedMarch 31, 2018increased$5.1 million in comparison to the three months endedMarch 31, 2017. The most significant change, other than the changes noted above, includes a $2.2 million increase in net securities gains resulting from the redemption of one of our trust preferred securities and a $0.8 million increase related to the mark to market adjustment on interest rate swaps entered into for our commercial loan customers. This adjustment does not reflect a realized gain on the swaps, but rather relates to a change in fair value due to movements in corporate bond spreads and swap rates. Gain on sale of mortgage loans increased $0.5 million as a result of continued growth in our mortgage lending area.

51

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

Noninterest Expense

The following table presents the components of noninterest expense for the three months endedMarch 31:

	2018		2017		$ Change			% Change
	(dollars in thousands)
Noninterest Expense:
Salaries and employee benefits	$	24,873	$	23,466	$	1,407		6	%
Net occupancy expense	4,369		3,761		608			16
Furniture and equipment expense	3,540		3,088		452			15
Data processing expense	2,433		2,085		348			17
Advertising and promotion expense	809		806		3			—
Pennsylvania shares tax expense	903		816		87			11
Intangible amortization	784		572		212			37
Collection and repossession expense	823		497		326			66
Other professional fees and services	1,007		959		48			5
FDIC insurance	776		793		(17		)	(2	)
Other operating expenses	5,843		4,980		863			17
Subtotal	46,160		41,823		4,337			10
Loss on sale or write-down of assets	197		99		98			99
Merger and acquisition related	337		611		(274		)	(45	)%
Litigation and operational losses	179		232		(53		)	(23	)%
Total noninterest expense	$	46,873	$	42,765	$	4,108		10	%

Noninterest expense, excluding loss on sale or write-down of assets, litigation and operational losses and merger and acquisition related expenses, increased$4.3 million, or 10%, for the three months endedMarch 31, 2018 compared to the same period in 2017. Contributing to the higher expenses in 2018 is a $1.4 million increase in salaries and employee benefits as a result of 94 additional full-time equivalent employees at March 31, 2018 compared to March 31, 2017. The higher number of employees is primarily a result of the acquisition of DCB in April 2017. This acquisition also accounted for $0.5 million of the $0.6 million increase in net occupancy expense, $0.2 million of the $0.5 million increase in furniture and equipment expense and all of the $0.2 million increase in intangible amortization. The most significant items contributing to the $0.9 million increase in other operating expense include an increase of $0.2 million in unfunded commitment reserve expense in 2018 as compared to 2017 and an increase of $0.3 million in expense recognized in connection with the fair value of derivatives related to mortgage loans held for sale and the fair value of mortgage loans held for sale.

Total noninterest expense increased by $4.1 million, or 10%, for the three months endedMarch 31, 2018 compared to the same period in 2017. Offsetting the total increase is a decrease of $0.3 million in merger and acquisition expense.

Income Tax

The provision for income taxes decreased$2.2 million for the three months endedMarch 31, 2018, compared to the corresponding period in 2017.  Despite a $5.2 millionincrease in the level of income before taxes, the lower provision for income taxes was the result of the Tax Cuts and Jobs Act passed in December 2017, which decreased the statutory tax rate from 35% to 21%.

We applied the “annual effective tax rate approach” to determine the provision for income taxes, which applies an annual forecast of tax expense as a percentage of expected full year income, for the three months endedMarch 31, 2018 and 2017.

We generate an annual effective tax rate that is less than the statutory rate of 21% 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. Additionally, the three months ended March 31, 2018, included a $0.6 million adjustment to the deferred tax asset adjustment recorded in the fourth quarter of 2017 due to the reduction in the statutory tax rate. These provided for an annual effective tax rate of 18.9% and 30.2% for the three months endedMarch 31, 2018 and 2017, respectively.

As of March 31, 2018, our deferred tax assets totaled $25.9 million. Based on our evaluation, we determined that it is more likely than not that all of these assets will be realized. As a result, a valuation allowance against these assets was not

52

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

recorded. In evaluating the need for a valuation allowance, we estimate future taxable income based on management approved forecasts, evaluation of historical earning levels and consideration of potential tax strategies. If future events differ from our current forecasts, we may need to establish a valuation allowance, which could have a material impact on our financial condition and results of operations.

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. We generate funds to meet these needs primarily through the core deposit base of First Commonwealth Bank and the maturity or repayment of loans and other interest-earning assets, including investments. During the first three months of 2018, liquidity used by the net decrease in short-term borrowings totaled $119.5 million, while the sales, maturity and redemption of investment securities provided $55.4 million. This liquidity provided funds to originate loans, purchase investment securities and fund depositor withdrawals. Additionally, on March 1, 2018, an auction call was successfully completed on PreTSL IX, 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 second quarter of 2018. As of March 31, 2018, the security has a par value of $3.0 million and a book value of $2.5 million.

We also have available unused wholesale sources of liquidity, including overnight federal funds and repurchase agreements, advances from the FHLB of Pittsburgh, borrowings through the discount window at the Federal Reserve Bank of Cleveland (“FRB”) and access to certificates of deposit through brokers.

We participate in the Certificate of Deposit Account Registry Services (“CDARS”) program as part of an Asset/Liability Committee (“ALCO”) strategy to increase and diversify funding sources. As of March 31, 2018, our maximum borrowing capacity under this program was $1.1 billion and as of that date there was $14.6 million outstanding with an average weighted rate of 0.98% and an average original term of 472 days. These deposits are part of a reciprocal program which allows our depositors to receive expanded FDIC coverage by placing multiple certificates of deposit at other CDARS member banks.

An additional source of liquidity is the FRB Borrower-in-Custody of Collateral program, which enables us to pledge certain loans that are not being used as collateral at the FHLB as collateral for borrowings at the FRB. At March 31, 2018, the borrowing capacity under this program totaled $781.1 million and there were no amounts outstanding.

As of March 31, 2018, our maximum borrowing capacity at the FHLB of Pittsburgh was $1.5 billion and as of that date amounts used against this capacity included $0.5 billion in outstanding borrowings and no outstanding letters of credit.

We also have available unused federal funds lines with five correspondent banks. These lines have an aggregate commitment of $195.0 million with a $6.0 million outstanding balance as of March 31, 2018. In addition, we have available unused repo lines with three correspondent banks. These lines have an aggregate commitment of $509.4 million with no outstanding balance as of March 31, 2018.

First Commonwealth Financial Corporation has an unsecured $15.0 million line of credit with another financial institution. As of March 31, 2018, there are no amounts outstanding on this line.

First Commonwealth’s long-term liquidity source is its core deposit base. 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 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. The following table shows a breakdown of the components of First Commonwealth’s deposits:

	March 31, 2018		December 31, 2017
	(dollars in thousands)
Noninterest-bearing demand deposits	$	1,443,747	$	1,416,771
Interest-bearing demand deposits	187,286		187,281
Savings deposits	3,428,967		3,361,840
Time deposits	643,522		614,813
Total	$	5,703,522	$	5,580,705

During the first three months of 2018, total deposits increased$122.8 million due to a $67.1 millionincrease in interest-bearing demand and savings deposits, a $27.0 million increase in noninterest-bearing demand deposits and a $28.7 millionincrease in time deposits. The increase in time deposits is the result of an increase in core certificates of deposit of $28.9 million offset by a decline in CDARs deposits of $0.2 million.

53

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

Market Risk

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 0.73 at March 31, 2018 and December 31, 2017, respectively. A ratio of less than one indicates a higher 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 non-maturity deposits, which are included in the analysis as repricing within one year.

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.

The following is the gap analysis as of March 31, 2018 and December 31, 2017:

	March 31, 2018
	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	$	2,599,380		$	210,753		$	327,477		$	3,137,610		$	1,740,523		$	474,381
Investments	79,658			50,597			97,243			227,498			589,454			417,391
Other interest-earning assets	9,736			—			—			9,736			—			—
Total interest-sensitive assets (ISA)	2,688,774			261,350			424,720			3,374,844			2,329,977			891,772
Certificates of deposit	84,674			90,546			172,408			347,628			292,429			3,465
Other deposits	3,616,253			—			—			3,616,253			—			—
Borrowings	660,427			246			503			661,176			4,523			9,993
Total interest-sensitive liabilities (ISL)	4,361,354			90,792			172,911			4,625,057			296,952			13,458
Gap	$	(1,672,580	)	$	170,558		$	251,809		$	(1,250,213	)	$	2,033,025		$	878,314
ISA/ISL	0.62			2.88			2.46			0.73			7.85			66.26
Gap/Total assets	22.85		%	2.33		%	3.44		%	17.08		%	27.77		%	12.00		%

54

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

	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		%

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) for basis point movements of:
	-200			-100			+100			+200
	(dollars in thousands)
March 31, 2018 ($)	$	(15,984	)	$	(5,181	)	$	5,794		$	11,194
March 31, 2018 (%)	(6.35		)%	(2.06		)%	2.30		%	4.45		%
December 31, 2017 ($)	$	(15,810	)	$	(6,181	)	$	5,856		$	11,315
December 31, 2017 (%)	(6.51		)%	(2.55		)%	2.41		%	4.66		%

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) for basis point movements of:
	-200			-100			+100			+200
	(dollars in thousands)
March 31, 2018 ($)	$	(35,444	)	$	(13,464	)	$	10,940		$	20,896
March 31, 2018 (%)	(14.08		)%	(5.35		)%	4.35		%	8.30		%
December 31, 2017 ($)	$	(33,734	)	$	(16,356	)	$	14,427		$	27,815
December 31, 2017 (%)	(13.90		)%	(6.74		)%	5.94		%	11.46		%

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. In the three months endedMarch 31, 2018 and 2017, the cost of our interest-bearing liabilities averaged 0.56% and 0.38%, respectively, and the yield on our average interest-earning assets, on a fully taxable equivalent basis, averaged 4.11% and 3.78%, respectively.

In 2015 and 2014, the Company entered into cash flow interest rate swaps, in which we extended the duration of $115.0 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. Please refer to Note 11 "Derivatives," for additional information on interest rate swaps.

55

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

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 March 31, 2018 and is classified in "Other liabilities" on the Condensed Consolidated Statements of Financial Condition.

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 alternative financing sources. In the first three months of 2018, 18 loans totaling $8.4 million were identified as troubled debt restructurings.

The balance of troubled debt restructured loans increased$6.2 million from December 31, 2017 due to the addition of a $3.8 million commercial, financial, agricultural and other relationship and a $3.0 million commercial real estate relationship. Offsetting these additions is the payoff of a $0.9 million commercial real estate relationship and a $0.5 million commercial, financial, agricultural and other relationship. Please refer to Note 8, “Loans and Allowance for Credit Losses,” for additional information on troubled debt restructurings.

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 on 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 fair value of any underlying collateral or the present value of projected future cash flows. Losses or a specifically assigned allowance for loan losses are recognized where appropriate.

Nonperforming loans, including loans held for sale, increased$15.0 million to $57.3 million at March 31, 2018 compared to $42.2 million at December 31, 2017. During the first quarter of 2018, $15.6 million of loans were moved to nonaccrual. Included in this total are $2.5 million commercial real estate relationship with a property management company and an $11.8 million local commercial, financial, agricultural and other relationship, of which $7.0 million is classified as doubtful. Offsetting these additions is the aforementioned payoff of $0.5 million of troubled debt restructured loans classified as nonaccrual.

The allowance for credit losses as a percentage of nonperforming loans was 93.84% as of March 31, 2018 compared to 114.34% at December 31, 2017 and 105.20% at March 31, 2017. The amount of specific reserves included in the allowance for nonperforming loans was determined by using fair values obtained from current appraisals and updated discounted cash flow analyses. The allowance for credit losses includes specific reserves of $11.5 million and general reserves of $42.3 million as of March 31, 2018. Specific reserves increased$7.7 million from December 31, 2017, and $8.5 million from March 31, 2017 primarily due to the addition of the two nonaccrual relationships noted above. Management believes that the allowance for credit losses is at a level deemed sufficient to absorb losses inherent in the loan portfolio at March 31, 2018.

Criticized loans totaled $126.4 million at March 31, 2018 and represented 2.3% of the loan portfolio. The level of criticized loans increased as of March 31, 2018 when compared to December 31, 2017, by $2.0 million, or 1.6%. Classified loans totaled $78.2 million at March 31, 2018 compared to $73.0 million at December 31, 2017, an increase of $5.1 million, or 7.0%. This

56

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

increase is primarily the result of the downgrade of two relationships totaling $17.6 million offset by the payoff of four relationships totaling $11.3 million. Delinquency on accruing loans for the same period decreased$0.6 million, or 4.4%, the majority of which are commercial, financial, agricultural and other loans and residential real estate loans.

The allowance for credit losses was $53.7 million at March 31, 2018 or 1.00% of total loans outstanding, compared to 0.89% reported at December 31, 2017 and 0.99% at March 31, 2017. General reserves, or the portion of the allowance related to loans that were not specifically evaluated for impairment, as a percentage of non-impaired loans were 0.79% at March 31, 2018 compared to 0.83% at December 31, 2017 and 0.94% at March 31, 2017. General reserves as a percentage of non-impaired originated loans were 0.86% at March 31, 2018 compared to 0.90% at December 31, 2017 and 0.96% at March 31, 2017.

57

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

The following table provides information related to nonperforming assets, the allowance for credit losses and other credit-related measures:

	March 31,								December 31, 2017
	2018				2017
	(dollars in thousands)
Nonperforming Loans:
Loans on nonaccrual basis	$	28,317			$	21,797			$	19,455
Loans held for sale on a nonaccrual basis	—				3,613				—
Troubled debt restructured loans on nonaccrual basis	10,233				10,482				11,222
Troubled debt restructured loans on accrual basis	18,707				13,990				11,563
Total nonperforming loans	$	57,257			$	49,882			$	42,240
Loans past due 30 to 90 days and still accruing	$	10,714			$	9,965			$	11,401
Loans past due in excess of 90 days and still accruing	$	1,955			$	1,582			$	1,854
Other real estate owned	$	2,997			$	6,910			$	2,765
Loans held for sale at end of period	$	9,759			$	9,588			$	14,850
Portfolio loans outstanding at end of period	$	5,381,305			$	4,907,961			$	5,407,376
Average loans outstanding	$	5,413,677		(a)	$	4,916,759		(a)	$	5,278,511		(b)
Nonperforming loans as a percentage of total loans	1.06		%		1.01		%		0.78		%
Provision for credit losses	$	6,903		(a)	$	3,229		(a)	$	5,087		(b)
Allowance for credit losses	$	53,732			$	48,676			$	48,298
Net charge-offs	$	1,469		(a)	$	4,738		(a)	$	6,974		(b)
Net charge-offs as a percentage of average loans outstanding (annualized)	0.11		%		0.39		%		0.13		%
Provision for credit losses as a percentage of net charge-offs	469.91		%	(a)	68.15		%	(a)	72.94		%	(b)
Allowance for credit losses as a percentage of end-of-period loans outstanding (c)	1.00		%		0.99		%		0.89		%
Allowance for credit losses as a percentage of end-of-period originated loans outstanding	1.08		%		1.01		%		0.96		%
Allowance for credit losses as a percentage of nonperforming loans (d)	93.84		%		105.20		%		114.34		%

(a) For the three-month period ended.

(b) For the twelve-month period ended.

(c) Does not include loans held for sale.

(d) Does not include nonperforming loans held for sale.

The following tables show the outstanding balances of our loan portfolio and the breakdown of net charge-offs and nonperforming loans, excluding loans held for sale, by loan type as of and for the periods presented:

	March 31, 2018				December 31, 2017
	Amount		%		Amount		%
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,131,594	21	%	$	1,163,383	22	%
Real estate construction	246,961		4		248,868		5
Residential real estate	1,434,623		27		1,426,370		26
Commercial real estate	2,027,072		38		2,019,096		37
Loans to individuals	541,055		10		549,659		10
Total loans and leases net of unearned income	$	5,381,305	100	%	$	5,407,376	100	%

During the three months endedMarch 31, 2018, loans decreased$26.1 million, or 0.5%, compared to balances outstanding at December 31, 2017. Growth in the residential and commercial real estate loans were offset by decreases in commercial, financial, agricultural and other categories as new volumes were offset by several large payoffs and loans to individuals which declined primarily due to runoff in our indirect auto portfolio.

58

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

Net charge-offs for the three months endedMarch 31, 2018 totaled $1.5 million, compared to $4.7 million for the three months endedMarch 31, 2017. The most significant charge-offs during the three months endedMarch 31, 2018 included $1.0 million in net charge-offs related to loans to individuals, primarily indirect auto loans and personal credit lines. During the three months endedMarch 31, 2017, the most significant charge-offs included a $1.9 million partial charge-off on a loan to a custom display manufacturer and a $1.5 million partial charge-off related to a containment tank manufacturer.

	For the Three Months Ended March 31, 2018							As of March 31, 2018
	Net Charge- offs			% of Total Net Charge-offs		Net Charge- offs as a % of Average Loans (annualized)		Nonperforming Loans		% of Total Nonperforming Loans		Nonperforming Loans as a % of Total Loans
	(dollars in thousands)
Commercial, financial, agricultural and other	$	27		1.84	%	—	%	$	33,817	59.06	%	0.63	%
Real estate construction	(7		)	(0.48	)	—		—		—		—
Residential real estate	379			25.80		0.03		11,707		20.45		0.21
Commercial real estate	99			6.74		0.01		11,377		19.87		0.21
Loans to individuals	971			66.10		0.07		356		0.62		0.01
Total loans, net of unearned income	$	1,469		100.00	%	0.11	%	$	57,257	100.00	%	1.06	%

As the above table illustrates, commercial, financial, agricultural and other, residential real estate and commercial real estate loans represented a significant portion of the nonperforming loans as of March 31, 2018. See discussions related to the provision for credit losses and loans for more information.

Capital Resources

At March 31, 2018, shareholders’ equity was $899.3 million, an increase of $11.2 million from December 31, 2017. The increase was primarily the result $23.3 million in net income and $2.3 million in treasury stock sales. These increases were partially offset by $7.8 million of dividends paid to shareholders, a decrease of $5.5 million in the fair value of available for sale investments and $1.1 million of common stock repurchases. Cash dividends declared per common share were $0.08 and $0.08 for the three months endedMarch 31, 2018 and 2017, respectively.

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 that, 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 reviewed by our Board of Director's. Our most recent capital stress test was completed in September 2017.

Effective January 1, 2015, the Company became subject to the 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 existing treatment for accumulated other comprehensive income, which currently does not affect regulatory capital. The Company elected to retain this treatment, which reduces the volatility of regulatory capital levels.

59

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

As of March 31, 2018, 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)
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	768,396	12.86	%	$	589,821	9.875	%	$	627,152	10.50	%	$	597,287	10.00	%
First Commonwealth Bank	730,904		12.28		587,805		9.875		625,008		10.50		595,246		10.00
Tier I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	709,477	11.88	%	$	470,364	7.875	%	$	507,694	8.50	%	$	477,830	8.00	%
First Commonwealth Bank	671,985		11.29		468,756		7.875		505,959		8.50		476,197		8.00
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	709,477	10.07	%	$	281,777	4.000	%	$	281,777	4.00	%	$	352,221	5.00	%
First Commonwealth Bank	671,985		9.57		280,920		4.000		280,920		4.00		351,150		5.00
Common Equity Tier I to Risk Weighted Assets
First Commonwealth Financial Corporation	$	639,477	10.71	%	$	380,771	6.375	%	$	418,101	7.00	%	$	388,237	6.50	%
First Commonwealth Bank	671,985		11.29		379,469		6.375		416,672		7.00		386,910		6.50

On April 24, 2018, First Commonwealth Financial Corporation declared a quarterly dividend of $0.09 per share payable on May 18, 2018 to shareholders of record as of May 4, 2018. This dividend represents a 12.5% increase over the previous quarterly dividend of $0.08. The timing and amount of future dividends are at the discretion of First Commonwealth's Board of Directors based upon, among other factors, capital levels, asset quality, liquidity and current and projected earnings.

60

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

Information appearing in Item 2 of this report under the caption “Market Risk” is incorporated by reference in response to this item.

ITEM 4. 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 current 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.

61

PART II – OTHER INFORMATION

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

ITEM 1. LEGAL PROCEEDINGS

The information required by this item is set forth in Part I, Item 1, Note 5, "Commitments and Contingent Liabilities," which is incorporated herein by reference in response to this item.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

None

62

PART II – OTHER INFORMATION

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

ITEM 6.     EXHIBITS

Exhibit Number	Description	Incorporated by Reference to
10.1	2018 Annual Incentive Plan	Filed herewith
10.2	2018-2020 Long-Term Incentive Plan	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	The following materials from First Commonwealth Financial Corporation’s Quarterly Report on Form 10-Q, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income and Comprehensive Income, (iii) the Condensed Consolidated Statements of Changes in Stockholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) the Notes to Unaudited Condensed Consolidated Financial Statements.	Filed herewith

63

SIGNATURES

Pursuant to the requirements 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.

FIRST COMMONWEALTH FINANCIAL CORPORATION

(Registrant)

DATED: May 9, 2018	/s/ T. Michael Price
	T. Michael Price President and Chief Executive Officer
DATED: May 9, 2018	/s/ James R. Reske
	James R. Reske Executive Vice President, Chief Financial Officer and Treasurer

64

EX-10.1

Exhibit 10.1

First Commonwealth Financial Corporation

2018 ANNUAL INCENTIVE PLAN

1. Purpose; Effective Date.

This 2018 Annual Incentive Plan (the “Plan”) of First Commonwealth Financial Corporation (the “Company”) is designed to enable the Company and its subsidiaries to attract and retain key employees and to align the interests of such key employees with the interests of shareholders by promoting and rewarding the achievement of annual performance goals. This Plan was approved by the Compensation and Human Resources Committee (the “Committee”) on February 22, 2018, for the fiscal 2018 performance period. Each Award granted under this Plan shall be subject to the terms and conditions of the First Commonwealth Financial Corporation Incentive Compensation Plan (as amended and restated effective April 28, 2015) (the “Master Plan”). Each capitalized term which is not otherwise defined in this Plan shall have the meaning given to such term in the Master Plan.

2. Administration.

The Plan shall be administered by the Committee in accordance with Article 3 of the Master Plan.

3. Participants and Performance Goals.

(a)Exhibit A identifies the Employees who have been selected by the Committee to become Participants in the Plan and the Target Award and Performance Goals for each Participant. The Performance Goals will consist of the Corporate Performance Goals identified in paragraph (b) below, and, if applicable, one or more individual Performance Goals which shall be approved by the Committee and specified in the notice of Award delivered to the Participant (collectively, the “Individual Performance Component”). Corporate Performance Goals shall be calculated from the Company’s publicly reported financial statements as of and for the twelve months ending December 31, 2018 (the “Performance Period”), as adjusted for any Excluded Items as determined by the Committee in its sole discretion. The achievement of the Individual Performance Component shall be determined by the Committee in its sole discretion.

(b)The Corporate Performance Goals for the Plan shall consist of the following: (i) Core Earnings Per Share (“EPS”); (ii) Core Return on Average Assets (“ROA”); and (iii) Core Efficiency Ratio.

4. Calculation of Actual Awards.

(a)A Participant’s payout for each Performance Goal shall be determined according to the following formula:

Award Percentage X Weight X Base Salary

For purposes of this formula:

“Award Percentage” shall mean the percentage shown for the Participant in the “Award Percentage” column of Table 1 on Exhibit A at the Performance Level which is achieved for the applicable Performance Goal as reflected in the “Performance Level” column of Table 2 on Exhibit A. If the actual

performance for a Performance Goal falls between the Threshold and Target Performance Levels or between the Target and Superior Performance Levels, the Award Percentage shall be interpolated between the Award Percentage for the Threshold and Target Performance Levels or between the Target and Superior Performance Levels, as the case may be, as determined by the Committee in its sole discretion. The Award Percentage for the Individual Performance Component will be determined by the Committee in its sole discretion after consideration of the Chief Executive Officer’s assessment of the Participant’s performance of individual scorecard objectives and contribution to the organization as a whole.

“Weight” shall mean the percentage shown for the measure in the “Weight” column of Table 2 on Exhibit A for the applicable Performance Goal.

“Base Salary” shall mean base salary of the Participant on the last day of the Performance Period.

(b)The aggregate amount payable to the Participant shall be the sum total of the payouts for the Participant’s Performance Goals calculated in accordance with Section 4(a) and shall be referred to as the Participant’s “Actual Award.” The Committee, in its sole discretion, may increase or decrease the Award Percentages used to calculate any Participant’s Actual Award by up to 25 percentage points if the Committee finds such an adjustment appropriate to recognize the impact of the Participant’s performance or impact on the organization outside of the range of expected performance and impact. Any such adjustment cannot increase the Participant’s total payout above the “Superior” level of payout assigned to the participant.

5. Payment of Actual Awards.

Actual Awards shall be paid in cash as soon as practicable following the certification by the Committee of results for the Performance Period. However, in any event, all payments shall be made no later than March 15, 2019, such that the payments will be exempt from Section 409A of the Code, under the “short term deferral" exemption specified in Treas. Reg. § 1.409A-1(b)(4). All Actual Awards are subject to withholding tax and any other normal deduction consistent with the Company’s practices.

6. Termination of Employment.

Notwithstanding any provision to the contrary in the Master Plan, if the Participant ceases to be a full-time employee of the Company for any reason prior to December 31, 2018, the Participant will cease to be a participant in this Plan and will not be eligible to receive any Actual Award pursuant to this Plan.

7. Miscellaneous Provisions.

(a)Claw-Back Rights. In the event the Company is required to prepare an accounting restatement of its financial statements due to the Company’s material noncompliance with any financial reporting requirement under the securities laws, the Committee will require reimbursement or forfeiture of any excess Award, which shall be determined as the excess of the Award paid to the Participant based on the erroneous data over the Award that would have been earned had it been based on the restated results, as determined by the Committee. In addition, the Committee will have the sole and absolute authority to require reimbursement or forfeiture of any Award by a Participant if the Committee determines that the

Award was earned in whole or in part as a result of the Participant’s unethical or dishonest conduct or a material violation of Company policy.

(b)Regulatory Approvals. The Plan and any Award made hereunder shall be subject to all applicable federal and state laws, rules and regulations, and to such approvals by any government or regulatory agency as may be required.

(c)No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause.

(d)No Right to Participation. No employee or officer of the Company or any subsidiary shall have the right to be selected to receive an Award under this Plan, or, having been so selected, have the right to receive a future Award.

(e)Nontransferability of Awards. No Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution. All rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to the Participant.

(f)Section 409A. The Plan will be administered, interpreted and construed in compliance with Section 409A of the Code and the regulations and other guidance promulgated thereunder ("Section 409A"), including any exemption thereunder. To the maximum extent permitted by Section 409A, all payments under the Plan are intended to be exempt from Section 409A pursuant to the exemption for short-term deferrals as specified in Treas. Reg. § 1.409A-1(b)(4), the exemption for restricted shares under Section 409A and any other exemptions available under Section 409A. Neither the Company, any of its Subsidiaries nor any of their respective predecessors, successors or affiliates (collectively, the "Company Group") shall be liable for, and nothing provided or contained in the Plan shall obligate or cause any member of the Company Group to be liable for, any tax, interest or penalties imposed on the Participant related to or arising with respect to any violation Section 409.

EX-10.2

Exhibit 10.2

First Commonwealth Financial Corporation

2018-2020 LONG-TERM INCENTIVE PLAN

1. Purpose; Effective Date.

This 2018-2020 Long-Term Incentive Plan (the “Plan”) of First Commonwealth Financial Corporation (the “Company”) is designed to enable the Company and its subsidiaries to attract and retain key employees and to align the interests of such key employees with the interests of shareholders by promoting share ownership and rewarding the achievement of long-term performance goals. This Plan was approved by the Compensation and Human Resources Committee (the “Committee”) on February 22, 2018, for the January 1, 2018 through December 31, 2020 performance period (the “Performance Period”). Each Award granted under this Plan shall be subject to the terms and conditions of the First Commonwealth Financial Corporation Incentive Compensation Plan (as amended and restated effective April 28, 2015) (the “Master Plan”). Each capitalized term which is not otherwise defined in this Plan shall have the meaning given to such term in the Master Plan.

2. Administration.

The Plan shall be administered by the Committee in accordance with Article 3 of the Master Plan.

3. Plan Awards.

(a)Awards under the Plan shall consist of Time-based Restricted Stock Units and Performance Units. Time-based Restricted Stock Units will be settled in shares of Common Stock on February 22, 2021, subject to continued service by the executive through this date. Performance Units will be settled in shares of Common Stock upon the certification by the Committee of the achievement of the Performance Goals.

(b)Exhibit A identifies the Employees who have been selected by the Committee to become Participants in the Plan, each Participant’s Time-based Restricted Stock Unit Award and Target Performance Unit Award, and the Plan Performance Goals.

(c)The Performance Goals for the Performance Period are:

i.Core Return on Average Tangible Common Equity (“ROTCE”) Relative to Peers, which shall be determined by comparing the simple average of the Company’s Core ROTCE for the second and third years of the Performance Period to the simple average of the Core ROTCE of each member of the Company’s Peer Group for the second and third years of the Performance Period, in each case, as Core ROTCE is reported through SNL Financial or another reporting service selected by the Committee. If Core ROTCE is not available for any member of the Peer Group, the Committee may, in its discretion, exclude that Peer Group member from the determination of Core ROTCE Relative to Peers or determine Core ROTCE Relative to Peers using the most recent information available for the Peer Group Member.

ii.Total Return to Shareholders (“TRS”) Relative to Peers, which shall be determined by comparing the Company’s cumulative TRS for the Performance Period to the cumulative TRS

of each member of the Company’s Peer Group for the Performance Period, in each case, as TRS is reported through SNL Financial or another reporting service selected by the Committee.

(d)The “Peer Group” for purposes of this Plan shall mean all publicly traded United States banks and thrifts having total assets greater than or equal to 50% and less than or equal to 200% of the total assets of the Company (rounded to the nearest $1 billion) based upon data available as of December 31, 2020.

4. Determination of Performance Units.

A Participant’s Performance Unit Award shall be determined according to the following formula:

(Target Award X ROTCE Payout) + (Target Award X TRS Payout)

For purposes of this formula:

“Target Award” shall mean the number of shares shown for the Participant in the “Target Performance Unit Award” column of Table 1 on Exhibit A.

“ROTCE Payout” means the percentage shown in the “ROTCE Payout” column of Table 2 on Exhibit A at the performance level for the Core ROTCE Relative to Peers Performance Goal. If the actual performance for ROTCE falls between the Threshold and Target performance levels, or between the Target and Superior performance levels, the ROTCE Payout shall be interpolated between the percentage shown for the Threshold and Target performance levels, or between the percentage shown for the Target and Superior performance levels, as the case may be, as determined by the Committee in its sole discretion.

“TRS Payout” means the percentage shown in the “TRS Payout” column of Table 2 on Exhibit A at the performance level for the TRS Relative to Peers Performance Goal. If the actual performance for TRS Relative to Peers falls between the Threshold and Target performance levels, or between the Target and Superior performance levels, the TRS Payout shall be interpolated between the percentage shown for the Threshold and Target performance levels, or between the percentage shown for the Target and Superior performance levels, as the case may be, as determined by the Committee in its sole discretion.

5. Settlement of Performance Units.

At the end of the Performance Period, the Committee will certify in writing the extent to which the Performance Goals have been achieved. For purposes of this provision, and for so long as the Code permits, the approved minutes of the Committee meeting in which the certification is made may be treated as written certification. Earned Performance Units shall be paid and settled in shares of Common Stock as soon as practicable following the certification by the Committee of results for the Performance Period. However, in any event, all earned Performance Units shall be paid and settled in shares of Common Stock no later than March 15, 2021, or such earlier date as is provided in the immediately succeeding sentence, such that the payments will be exempt from Section 409A of the Code, under the “short term deferral" exemption specified in Treas. Reg. § 1.409A-1(b)(4). Notwithstanding the foregoing, the Committee, in its sole discretion, may cause all or any portion of a Participant’s Performance Units to be paid and settled in shares of Common Stock prior to March 15, 2021 in the event of (i) the death of the Participant or (ii) a

Change of Control, provided that any such earlier payment or settlement shall be made no later than March 15 of the year following the year of such death or Change of Control.

6. Termination of Employment.

Notwithstanding any provision to the contrary in the Master Plan, if the Participant ceases to be a full-time employee of the Company for any reason prior to the end of the Performance Period, the Participant will cease to be a participant in this Plan and will not be eligible to receive any Awards pursuant to this Plan.

7. Miscellaneous Provisions.

(a)Claw-Back Rights. In the event the Company is required to prepare an accounting restatement of its financial statements due to the Company’s material noncompliance with any financial reporting requirement under the securities laws, the Committee will require reimbursement or forfeiture of any excess Award, which shall be determined as the excess of the Award paid to the Participant based on the erroneous data over the Award that would have been earned had it been based on the restated results, as determined by the Committee. In addition, the Committee will have the sole and absolute authority to require reimbursement or forfeiture of any Award by a Participant if the Committee determines that the Award was earned in whole or in part as a result of the Participant’s unethical or dishonest conduct or a material violation of Company policy.

(b)Amendment or Termination. Notwithstanding any provision to the contrary in the Master Plan, the Committee has full power to amend, modify, suspend, or terminate the Plan or the Awards granted under the Plan to the extent the Committee deems necessary or advisable, in its sole discretion, to promote the safety and soundness of the Company or any of its Subsidiaries, to comply with changes to applicable laws, regulations and regulatory guidance or under other extraordinary circumstances arising after the effective date of the Plan.

(c)Regulatory Approvals. The Plan and any Award made hereunder shall be subject to all applicable federal and state laws, rules and regulations, and to such approvals by any government or regulatory agency as may be required.

(d)No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause.

(e)No Right to Participation. No employee or officer of the Company or any subsidiary shall have the right to be selected to receive an Award under this Plan, or, having been so selected, have the right to receive a future Award.

(f)Nontransferability of Awards. No Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution. All rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to the Participant.

(g)Section 409A. The Plan will be administered, interpreted and construed in compliance with Section 409A of the Code and the regulations and other guidance promulgated thereunder ("Section 409A"), including any exemption thereunder. To the maximum extent permitted by Section 409A, all payments under the Plan are intended to be exempt from Section 409A pursuant to the exemption for short-term deferrals as specified in Treas. Reg. § 1.409A-1(b)(4), the exemption for restricted shares under Section 409A and any other exemptions available under Section 409A. Neither the Company, any of its Subsidiaries nor any of their respective predecessors, successors or affiliates (collectively, the "Company Group") shall be liable for, and nothing provided or contained in the Plan shall obligate or cause any member of the Company Group to be liable for, any tax, interest or penalties imposed on the Participant related to or arising with respect to any violation Section 409A.

EX-31.1

EXHIBIT 31.1

CHIEF 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 quarterly report on Form 10-Q 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.

DATED: May 9, 2018	/s/ T. Michael Price
	T. Michael Price President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CHIEF 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 quarterly report on Form 10-Q 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.

DATED: May 9, 2018	/s/ James R. Reske
	James R. Reske
	Executive Vice President, Chief Financial Officer and Treasurer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

I, T. Michael Price, of First Commonwealth Financial Corporation (“First Commonwealth”), certify that the Quarterly Report of First Commonwealth on Form 10-Q for the period ended March 31, 2018, 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: May 9, 2018	/s/ T. Michael Price
	T. Michael Price
	President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

I, James R. Reske, of First Commonwealth Financial Corporation (“First Commonwealth”), certify that the Quarterly Report of First Commonwealth on Form 10-Q for the period ended March 31, 2018, 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: May 9, 2018	/s/ James R. Reske
	James R. Reske
	Executive Vice President, Chief Financial Officer and Treasurer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 08, 2018
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Trading Symbol	FCF
Entity Registrant Name	FIRST COMMONWEALTH FINANCIAL CORP /PA/
Entity Central Index Key	0000712537
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		100,361,905

XML

Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 65,886	$ 98,624
Interest-bearing bank deposits	9,736	8,668
Securities available for sale, at fair value	812,877	731,358
Securities held to maturity, at amortized cost (Fair value of $399,528 and $418,249 at March 31, 2018 and December 31, 2017, respectively)	410,430	422,096
Other investments	24,400	29,837
Loans held for sale	9,759	14,850
Loans:
Portfolio loans	5,381,305	5,407,376
Allowance for credit losses	(53,732)	(48,298)
Net loans	5,327,573	5,359,078
Premises and equipment, net	80,868	81,339
Other real estate owned	2,997	2,765
Goodwill	255,180	255,353
Amortizing intangibles, net	14,223	15,007
Bank owned life insurance	211,287	212,099
Other assets	95,551	77,465
Total assets	7,320,767	7,308,539
Deposits (all domestic):
Noninterest-bearing	1,443,747	1,416,771
Interest-bearing	4,259,775	4,163,934
Total deposits	5,703,522	5,580,705
Short-term borrowings	588,016	707,466
Subordinated debentures	72,167	72,167
Other long-term debt	8,011	8,161
Capital Lease Obligations	7,498	7,590
Total long-term debt	87,676	87,918
Other liabilities	42,204	44,323
Total liabilities	6,421,418	6,420,412
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 shares issued at March 31, 2018 and December 31, 2017, and 97,603,151 and 97,456,478 shares outstanding at March 31, 2018 and December 31, 2017, respectively	113,915	113,915
Additional paid-in capital	471,768	470,123
Retained earnings	454,227	437,416
Accumulated other comprehensive loss, net	(13,009)	(6,173)
Treasury stock (16,311,751 and 16,458,424 shares at March 31, 2018 and December 31, 2017, respectively)	(127,552)	(127,154)
Total shareholders’ equity	899,349	888,127
Total liabilities and shareholders’ equity	$ 7,320,767	$ 7,308,539

XML

Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
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	113,914,902
Common stock, shares outstanding (in shares)	97,603,151	97,456,478
Treasury stock, shares (in shares)	16,311,751	16,458,424
Securities held to maturity, fair value	$ 399,528	$ 418,249

XML

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest Income
Interest and fees on loans	$ 58,483	$ 48,300
Interest and dividends on investments:
Taxable interest	7,056	6,994
Interest exempt from federal income taxes	410	397
Dividends	519	476
Interest on bank deposits	31	12
Total interest income	66,499	56,179
Interest Expense
Interest on deposits	3,541	1,812
Interest on short-term borrowings	2,295	1,749
Interest on subordinated debentures	827	705
Interest on other long-term debt	77	83
Interest Expense, Lessee, Assets under Capital Lease	74	0
Total interest expense	6,814	4,349
Net Interest Income	59,685	51,830
Provision for credit losses	6,903	3,229
Net Interest Income after Provision for Credit Losses	52,782	48,601
Noninterest Income
Net securities gains	2,840	652
Trust income	1,928	1,417
Service charges on deposit accounts	4,406	4,319
Insurance and retail brokerage commissions	1,868	2,082
Income from bank owned life insurance	1,494	1,292
Gain on sale of mortgage loans	1,484	977
Gain on sale of other loans and assets	574	307
Card-related interchange income	4,742	4,251
Derivatives mark to market	789	2
Derivative Fee Income	290	(73)
Other income	1,628	1,706
Total noninterest income	22,043	16,932
Noninterest Expense
Salaries and employee benefits	24,873	23,466
Net occupancy expense	4,369	3,761
Furniture and equipment expense	3,540	3,088
Data processing expense	2,433	2,085
Marketing and Advertising Expense	809	806
Pennsylvania shares tax expense	903	816
Intangible amortization	784	572
Collection and repossession expense	823	497
Other professional fees and services	1,007	959
FDIC insurance	776	793
Loss on sale or write-down of assets	197	99
Litigation and operational losses	179	232
Conversion Related Expenses	337	611
Total noninterest expense	46,873	42,765
Income Before Income Taxes	27,952	22,768
Income tax provision	4,682	6,880
Net Income	$ 23,270	$ 15,888
Average Shares Outstanding (in shares)	97,433,137	88,929,892
Average Shares Outstanding Assuming Dilution (in shares)	97,601,162	88,987,671
Per Share Data:
Basic Earnings per Share (in dollars per share)	$ 0.24	$ 0.18
Diluted Earnings per Share (in dollars per share)	0.24	0.18
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.08	$ 0.08

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net Income	$ 23,270	$ 15,888
Other comprehensive (loss) income, before tax benefit (expense):
Unrealized holding (losses) gains on securities arising during the period	(3,982)	2,543
Less: reclassification adjustment for gains on securities included in net income	(2,840)	(652)
Unrealized holding losses on derivatives arising during the period	(130)	(516)
Less: reclassification adjustment for losses on derivatives included in net income	0	78
Total other comprehensive (loss) income, before tax benefit (expense)	(6,952)	1,453
Income tax benefit (expense) related to items of other comprehensive (loss) income	1,460	(509)
Total other comprehensive (loss) income	(5,492)	944
Comprehensive Income	$ 17,778	$ 16,832

XML

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - 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]
Cumulative effect of adoption of ASU 2018-02 | Effect of ASU Adoption [Member]	$ 0				$ 0
Beginning balance at Dec. 31, 2016	749,929	$ 105,563	$ 366,426	$ 412,764	(7,027)	$ (127,797)
Beginning balance, shares at Dec. 31, 2016		89,007,077
Net Income	15,888			15,888
Other comprehensive income (loss)	944				944
Dividends, declared (USD per share)	(7,119)			(7,119)
Treasury stock acquired	(1,102)					(1,102)
Treasury stock acquired, shares		(78,632)
Stock Issued During Period, Value, Treasury Stock Reissued	2,258		1,044	0		1,214
Stock Issued During Period, Shares, Treasury Stock Reissued		158,638
Restricted stock	197	$ 0	137	0		60
Restricted stock, shares		26,000
Stock Issued During Period, Value, Treasury Stock Reissued	2,258
Ending balance at Mar. 31, 2017	760,995	$ 105,563	367,607	421,533	(6,083)	(127,625)
Ending balance, shares at Mar. 31, 2017		89,113,083
Cumulative effect of adoption of ASU 2018-02 | Effect of ASU Adoption [Member]	0			1,344	(1,344)
Beginning balance (Scenario, Previously Reported [Member]) at Dec. 31, 2017	888,127	$ 113,915	470,123	437,416	(6,173)	(127,154)
Beginning balance at Dec. 31, 2017	$ 888,127	$ 113,915	470,123	438,760	(7,517)	(127,154)
Beginning balance, shares (Scenario, Previously Reported [Member]) at Dec. 31, 2017		97,456,478
Beginning balance, shares at Dec. 31, 2017	97,456,478	97,456,478
Net Income	$ 23,270			23,270
Other comprehensive income (loss)	(5,492)				(5,492)
Dividends, declared (USD per share)	(7,803)			(7,803)
Treasury stock acquired	(1,079)					(1,079)
Treasury stock acquired, shares		(72,307)
Stock Issued During Period, Value, Treasury Stock Reissued	2,257		1,108	0		1,149
Stock Issued During Period, Shares, Treasury Stock Reissued		149,480
Restricted stock	69	$ 0	537	0		(468)
Restricted stock, shares		69,500
Stock Issued During Period, Value, Treasury Stock Reissued	2,257
Ending balance at Mar. 31, 2018	$ 899,349	$ 113,915	$ 471,768	$ 454,227	$ (13,009)	$ (127,552)
Ending balance, shares at Mar. 31, 2018	97,603,151	97,603,151

XML

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Stockholders' Equity [Abstract]
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.08	$ 0.08

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Activities
Net Income	$ 23,270	$ 15,888
Provision for credit losses	6,903	3,229
Deferred tax expense	1,097	2,506
Depreciation and amortization	2,380	2,113
Net gains on securities and other assets	(5,143)	(1,718)
Net (accretion) amortization of premiums and discounts on securities	775	867
Income from increase in cash surrender value of bank owned life insurance	(1,494)	(1,292)
Increase in interest receivable	(620)	(338)
Mortgage loans originated for sale	(38,218)	(27,580)
Proceeds from sale of mortgage loans	46,134	29,829
(Decrease) increase in interest payable	(235)	571
Increase in income taxes payable	3,557	4,354
Other-net	(17,004)	(991)
Net cash provided by operating activities	21,402	27,438
Investing Activities
Proceeds from sale and maturity of held-to-maturity securities	11,335	10,826
Payments to acquire held-to-maturity securities	0	(25,140)
Proceeds from Sale of Available-for-sale Securities	0	0
Proceeds from maturities and redemptions of available-for-sale securities	44,067	33,125
Purchases of available-for-sale securities	(130,012)	(85,220)
Purchases of FHLB stock	(13,491)	(12,883)
Proceeds from the redemption of FHLB stock	18,928	10,712
Proceeds from Sale of Loans Receivable	6,647	0
Proceeds from sale of other assets	1,141	1,631
Increase in Restricted Cash	0	(21,284)
Net decrease (increase) in loans	16,012	(37,514)
Payments for Purchase of Other Assets	(154)	(410)
Purchases of premises and equipment	(1,820)	(1,531)
Net cash used in investing activities	(47,347)	(127,688)
Financing Activities
Net increase in federal funds purchased	6,000	0
Net (decrease) increase in other short-term borrowings	(125,450)	93,658
Net increase in deposits	122,849	22,385
Repayments of other long-term debt	(150)	(145)
Repayments of Long-term Capital Lease Obligations	92	0
Dividends paid	(7,803)	(7,119)
Purchase of treasury stock	(1,079)	(1,102)
Net cash (used in) provided by financing activities	(5,725)	107,677
Net (decrease) increase in cash and cash equivalents	(31,670)	7,427
Cash and cash equivalents at January 1	107,292	115,677
Cash and cash equivalents at March 31	$ 75,622	$ 123,104

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accounting and reporting policies of First Commonwealth Financial Corporation and its subsidiaries (“First Commonwealth” or the “Company”) conform with generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the financial statements and accompanying notes. Actual realized amounts could differ from those estimates. In the opinion of management, the unaudited interim condensed consolidated financial statements include all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of First Commonwealth’s financial position, results of operations, comprehensive income, cash flows and changes in shareholders’ equity as of and for the periods presented.

The results of operations for the three months endedMarch 31, 2018 are not necessarily indicative of the results that may be expected for the full year of 2018. These interim financial statements should be read in conjunction with First Commonwealth’s 2017 Annual Report on Form 10-K.

Adoption of New Accounting Standards

On January 1, 2018, First Commonwealth adopted ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") and all subsequent amendments to the ASU, which creates a single framework for recognizing revenue from contracts with customers that fall within its scope and revises when it is appropriate to recognize a gain(loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company's revenues come from interest income and other sources, including loans and securities, that are outside the scope of ASC 606. The Company's services that fall within the scope of ASC 606 are presented within non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include trust income, service charges on deposits, insurance and retail brokerage commissions, interchange fees and gain(loss) on other real estate owned ("OREO"). Refer to Note 13, "Revenue Recognition" for further discussion on the Company's accounting policies for revenue sources within the scope of ASC 606. The Company adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 while prior period amounts continue to be reported in accordance with legacy GAAP. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded.

On January 1, 2018, First Commonwealth elected to adopt ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)." As part of this adoption, First Commonwealth has elected to reclassify the income tax effects resulting from tax reform from accumulated other comprehensive income to retained earnings on a portfolio basis. ASU 2018-02 provides for the reclassification of the stranded tax effects resulting from the Tax Cuts and Jobs Act. As of January 1, 2018, First Commonwealth reclassified $1.3 million from accumulated other comprehensive income to retained earnings in relation to the stranded tax effect which included accumulated other comprehensive income recognized on available-for-sale investment securities, interest rate swaps and other post-retirement benefits. This reclassification is shown as an adjustment to the beginning of the year balances and can be seen in the Condensed Consolidated Statements of Changes in Shareholders' Equity.

In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, and when that assessment indicates that impairment exists, requiring the entity to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The adoption of ASU No. 2016-01 on January 1, 2018 did not have a material impact on the Company’s Consolidated Financial Statements. In accordance with this ASU, and as reflected in Note 10, "Fair Values of Assets and Liabilities", the Company measured the fair value of its loan portfolio as of March 31, 2018 using an exit price notion.

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.

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Supplemental Comprehensive Income Disclosures

3 Months Ended

Mar. 31, 2018

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 (“OCI”) in the Condensed Consolidated Statements of Comprehensive Income. Reclassification adjustments related to securities available for sale are included in the "Net securities gains" line and reclassification adjustments related to losses on derivatives are included in the "Other operating expenses" line in the Condensed Consolidated Statements of Income.

	For the Three Months Ended March 31,
	2018								2017
	Pretax Amount			Tax (Expense) Benefit		Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount
	(dollars in thousands)
Unrealized (losses) gains on securities:
Unrealized holding (losses) gains on securities arising during the period	$	(3,982	)	$	837	$	(3,145	)	$	2,543		$	(890	)	$	1,653
Reclassification adjustment for gains on securities included in net income	(2,840		)	596		(2,244		)	(652		)	228			(424		)
Total unrealized (losses) gains on securities	(6,822		)	1,433		(5,389		)	1,891			(662		)	1,229
Unrealized losses on derivatives:
Unrealized holding losses on derivatives arising during the period	(130		)	27		(103		)	(516		)	181			(335		)
Reclassification adjustment for losses on derivatives included in net income	—			—		—			78			(28		)	50
Total unrealized losses on derivatives	(130		)	27		(103		)	(438		)	153			(285		)
Total other comprehensive (loss) income	$	(6,952	)	$	1,460	$	(5,492	)	$	1,453		$	(509	)	$	944

The following table details the change in components of OCI for the three months endedMarch 31:

	2018											2017
	Securities Available for Sale			Post-Retirement Obligation		Derivatives			Accumulated Other Comprehensive Income (Loss)			Securities Available for Sale			Post-Retirement Obligation		Derivatives			Accumulated Other Comprehensive Income (Loss)
	(dollars in thousands)
Balance at December 31	$	(6,166	)	$	299	$	(306	)	$	(6,173	)	$	(7,455	)	$	225	$	203		$	(7,027	)
Cumulative effect of adoption of ASU 2018-02	(1,344		)	—		—			(1,344		)	—			—		—			—
Balance at January 1	(7,510		)	299		(306		)	(7,517		)	(7,455		)	225		203			(7,027		)
Other comprehensive (loss) income before reclassification adjustment	(3,145		)	—		(103		)	(3,248		)	1,653			—		(335		)	1,318
Amounts reclassified from accumulated other comprehensive (loss) income	(2,244		)	—		—			(2,244		)	(424		)	—		50			(374		)
Net other comprehensive (loss) income during the period	(5,389		)	—		(103		)	(5,492		)	1,229			—		(285		)	944
Balance at March 31	$	(12,899	)	$	299	$	(409	)	$	(13,009	)	$	(6,226	)	$	225	$	(82	)	$	(6,083	)

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Supplemental Cash Flow Disclosures

3 Months Ended

Mar. 31, 2018

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Disclosures

Supplemental Cash Flow Disclosures

The following table presents information related to cash paid during the period for interest, as well as detail on non-cash investing and financing activities for the three months endedMarch 31:

	2018			2017
	(dollars in thousands)
Cash paid during the period for:
Interest	$	7,072		$	3,832
Income taxes	28			1,039
Non-cash investing and financing activities:
Loans transferred to other real estate owned and repossessed assets	1,186			958
Loans transferred from held to maturity to held for sale	8,019			3,613
Gross (decrease) increase in market value adjustment to securities available for sale	(6,822		)	1,892
Gross decrease in market value adjustment to derivatives	(131		)	(438		)
Investments committed to purchase, not settled	—			498
Noncash treasury stock reissuance	2,257			2,258
Proceeds from death benefit on bank-owned life insurance not received	2,306			—

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Earnings per Share

3 Months Ended

Mar. 31, 2018

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 computations:

	For the Three Months Ended March 31,
	2018		2017
Weighted average common shares issued	113,914,902		105,563,455
Average treasury stock shares	(16,369,144	)	(16,527,204	)
Average deferred compensation shares	(37,411	)	—
Average unearned nonvested shares	(75,210	)	(106,359	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share	97,433,137		88,929,892
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share	130,614		57,779
Additional common stock equivalents (deferred compensation) used to calculate diluted earnings per share	37,411		—
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share	97,601,162		88,987,671

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 three months endedMarch 31 because to do so would have been antidilutive.

	2018					2017
		Price Range					Price Range
	Shares	From		To		Shares	From		To
Restricted Stock	37,298	$	9.84	$	14.49	13,750	$	13.96	$	13.96
Restricted Stock Units	43,067	$	13.25	$	15.83	24,375	$	15.09	$	15.09

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

Commitments and Letters of Credit

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 of 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:

	March 31, 2018		December 31, 2017
	(dollars in thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,782,701	$	1,840,180
Financial standby letters of credit	17,636		17,946
Performance standby letters of credit	21,328		20,472
Commercial letters of credit	1,055		1,149

The notional amounts outstanding as of March 31, 2018 include amounts issued in 2018 of $37 thousand in financial standby letters of credit and $0.4 million in performance standby letters of credit. There were no commercial letters of credit issued in 2017. A liability of $0.2 million has been recorded as of March 31, 2018 and December 31, 2017, 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 related to these commitments resulted in the recording of a liability of $5.2 million as of March 31, 2018 and December 31, 2017. This liability is reflected in "Other liabilities" in the Condensed 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.

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 March 31, 2018, 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 $1 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 Financial Corporation, First Commonwealth Bank, the plaintiffs, the plaintiffs’ counsel and First Commonwealth’s liability insurer have entered into a Class Action Settlement Agreement and Release in which, among other things, First Commonwealth and its insurer have agreed to pay certain amounts into a settlement fund to be distributed among the class members and class counsel, First Commonwealth has agreed to satisfy the remaining deficiency balances of the class members and request that credit reporting agencies delete the tradeline relating to the repossession from each class member’s credit report, and the class members will release all claims against First Commonwealth and its insurer. The Court granted preliminary approval of the settlement on March 29, 2018, and has scheduled a hearing on July 23, 2018 to consider final approval of the settlement. The estimated cost of the settlement to First Commonwealth 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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Investment Securities

3 Months Ended

Mar. 31, 2018

Investment Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Investment Securities

Securities Available for Sale

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

	March 31, 2018									December 31, 2017
	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	$	10,100	$	646	$	(81	)	$	10,665	$	10,556	$	789	$	(7	)	$	11,338
Mortgage-Backed Securities – Commercial	73,389		—		(1,252		)	72,137		24,611		—		(462		)	24,149
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	681,343		1,913		(18,468		)	664,788		632,422		2,622		(9,489		)	625,555
Other Government-Sponsored Enterprises	1,100		—		(2		)	1,098		1,098		—		(1		)	1,097
Obligations of States and Political Subdivisions	27,086		121		(46		)	27,161		27,083		327		—			27,410
Corporate Securities	20,898		542		(214		)	21,226		15,907		590		(4		)	16,493
Pooled Trust Preferred Collateralized Debt Obligations	13,602		1,252		(722		)	14,132		27,499		526		(4,379		)	23,646
Total Debt Securities	827,518		4,474		(20,785		)	811,207		739,176		4,854		(14,342		)	729,688
Equities	1,670		—		—			1,670		1,670		—		—			1,670
Total Securities Available for Sale	$	829,188	$	4,474	$	(20,785	)	$	812,877	$	740,846	$	4,854	$	(14,342	)	$	731,358

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 March 31, 2018, by contractual maturity, are shown below.

	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	5,099	$	5,073
Due after 1 but within 5 years	15,727		15,541
Due after 5 but within 10 years	26,337		26,409
Due after 10 years	15,523		16,594
	62,686		63,617
Mortgage-Backed Securities (a)	764,832		747,590
Total Debt Securities	$	827,518	$	811,207

(a) Mortgage-Backed Securities include an amortized cost of $83.5 million and a fair value of $82.8 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $681.3 million and a fair value of $664.8 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 three months endedMarch 31:

	2018		2017
	(dollars in thousands)
Proceeds from sales	$	—	$	—
Gross gains (losses) realized:
Sales Transactions:
Gross gains	$	—	$	—
Gross losses	—		—
	—		—
Maturities and impairment
Gross gains	2,840		652
Gross losses	—		—
	2,840		652
Net gains and impairment	$	2,840	$	652

Gross gains from maturities and impairment of $2.8 million were recognized in 2018 as a result of the successful auction call on PreSTL XIV, one of our pooled trust preferred securities. Gross gains of $0.7 million were recognized in 2017 due to the early redemption of another of our trust preferred securities, PreSTL VII. Securities available for sale with an estimated fair value of $609.9 million and $569.0 million were pledged as of March 31, 2018 and December 31, 2017, 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:

	March 31, 2018									December 31, 2017
	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	$	3,895	$	—	$	(109	)	$	3,786	$	3,925	$	—	$	(14	)	$	3,911
Mortgage-Backed Securities- Commercial	57,762		—		(2,224		)	55,538		58,249		—		(1,394		)	56,855
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	294,205		—		(7,645		)	286,560		305,126		10		(2,552		)	302,584
Mortgage-Backed Securities – Commercial	13,859		—		(299		)	13,560		14,056		—		(71		)	13,985
Obligations of States and Political Subdivisions	40,509		38		(660		)	39,887		40,540		335		(161		)	40,714
Debt Securities Issued by Foreign Governments	200		—		(3		)	197		200		—		—			200
Total Securities Held to Maturity	$	410,430	$	38	$	(10,940	)	$	399,528	$	422,096	$	345	$	(4,192	)	$	418,249

The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2018, 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	$	86
Due after 1 but within 5 years	3,646		3,626
Due after 5 but within 10 years	35,350		34,764
Due after 10 years	1,626		1,608
	40,709		40,084
Mortgage-Backed Securities (a)	369,721		359,444
Total Debt Securities	$	410,430	$	399,528

(a) Mortgage-Backed Securities include an amortized cost of $61.7 million and a fair value of $59.3 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $308.1 million and a fair value of $300.1 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 $369.4 million and $338.3 million were pledged as of March 31, 2018 and December 31, 2017, respectively, to secure public deposits and for other purposes required or permitted by law.

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Impairment of Investment Securities

3 Months Ended

Mar. 31, 2018

Impairment of Investment Securities Disclosure [Abstract]

Impairment of Investment Securities

Impairment of Investment Securities

Securities Available for Sale and Held to Maturity

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 OCI. During the three months endedMarch 31, 2018 and 2017, 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, or be required 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, 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 indicate that 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 10, “Fair Values of Assets and Liabilities,” for additional information.

The following table presents the gross unrealized losses and estimated fair values at March 31, 2018 for both available for sale and held to maturity securities by investment category and time frame for which securities have been in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	7,923	$	(190	)	$	—	$	—		$	7,923	$	(190	)
Mortgage-Backed Securities – Commercial	95,862		(2,120		)	31,813		(1,356		)	127,675		(3,476		)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	500,625		(10,277		)	378,709		(15,836		)	879,334		(26,113		)
Mortgage-Backed Securities – Commercial	13,560		(299		)	—		—			13,560		(299		)
Other Government-Sponsored Enterprises	999		(1		)	99		(1		)	1,098		(2		)
Obligations of States and Political Subdivisions	31,032		(413		)	3,489		(293		)	34,521		(706		)
Debt securities issued by foreign governments	197		(3		)	—		—			197		(3		)
Corporate Securities	18,764		(214		)	—		—			18,764		(214		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			6,362		(722		)	6,362		(722		)
Total Securities	$	668,962	$	(13,517	)	$	420,472	$	(18,208	)	$	1,089,434	$	(31,725	)

At March 31, 2018, fixed income securities issued by U.S. Government-sponsored enterprises and U.S. Government agencies comprised 83% and 12%, respectively, of total unrealized losses due to changes in market interest rates. Pooled trust preferred collateralized debt obligations accounted for 2% of the unrealized losses primarily due to the illiquid market for this investment type. At March 31, 2018, there are 155 debt securities in an unrealized loss position.

The following table presents the gross unrealized losses and estimated fair values at December 31, 2017 by investment category and time frame for which securities have been in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	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		)
Obligation 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	)

As of March 31, 2018, our corporate securities had an amortized cost and an estimated fair value of $20.9 million and $21.2 million, respectively. 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. Corporate securities are comprised of debt for large regional banks. There were four corporate securities in an unrealized loss position as of March 31, 2018 and one corporate security in an unrealized loss position as of December 31, 2017. When unrealized losses exist on these investments, management reviews each of the issuer’s asset quality, earnings trends 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 March 31, 2018, the book value of our pooled trust preferred collateralized debt obligations totaled $13.6 million with an estimated fair value of $14.1 million, which includes securities comprised of 164 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 our 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 March 31, 2018, 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 four of our securities had excess subordination which ranged from 2% to 114% of the current performing collateral.

The following table provides information related to our pooled trust preferred collateralized debt obligations as of March 31, 2018:

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)
Pre TSL IV	Mezzanine	$	933	$	738	$	(195	)	Ba1/BB	5	—	%	113.79	%
Pre TSL VIII	Mezzanine	2,072		2,295		223			C/C	26	38.52		0.00
Pre TSL IX	Mezzanine	2,457		3,000		543			B1/C	37	27.83		19.46
Pre TSL X	Mezzanine	1,894		2,301		407			Caa1/C	41	26.29		1.73
Pre TSL XII	Mezzanine	6,151		5,624		(527		)	B3/C	64	23.39		0.00
MMCap I	Mezzanine	95		174		79			Ca/C	7	69.35		69.99
Total		$	13,602	$	14,132	$	530

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

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.

During the three months ended March 31, 2018, an auction call was successfully completed on PreTSL XIV. This resulted in the security being called at par providing a gain of $2.8 million.

On a quarterly basis we evaluate our debt securities for other-than-temporary impairment. During the three months endedMarch 31, 2018 and 2017, 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 March 31, 2018. 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 164 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 will 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 March 31, 2018, 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 that 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 allow 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 March 31, 2018, indicates that no credit-related other-than-temporary impairment has occurred on our pooled trust preferred securities during the three months endedMarch 31, 2018. Based upon the analysis performed by management, it is probable that two of our pooled trust preferred securities will experience principal and interest shortfalls and therefore appropriate other-than-temporary charges were recorded in prior periods. These securities are identified in the previous table with 0.00% “Excess Subordination as a % of Current Performing Collateral.” For the remaining securities listed in that table, our analysis as of March 31, 2018 indicates it is probable that we will collect all contractual principal and interest payments. For three of those securities, PreTSL IX, PreTSL X, 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 March 31, 2018, 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 19% to 101% 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 following table provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold:

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands)
Balance, beginning (a)	$	12,208		$	17,056
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)	(147		)	(228		)
Reduction for debt securities called during the period	(2,302		)	—
Balance, ending	$	9,759		$	16,828

(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 in interest income during the period.

In the first three months of 2018 and 2017, no other-than-temporary impairment charges were recorded on equity securities. On a quarterly basis, management evaluates equity securities for other-than-temporary impairment by reviewing 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. As of March 31, 2018 and 2017, there were no equity securities in an unrealized loss position.

Other Investments

As a member of the Federal Home Loan Bank ("FHLB"), First Commonwealth is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. The level of stock required to be held is dependent on the amount of First Commonwealth's mortgage-related assets and outstanding borrowings with the FHLB. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. As of March 31, 2018 and December 31, 2017, our FHLB stock totaled $24.4 million and $29.8 million, respectively, and is included in “Other investments” on the Condensed Consolidated Statements of Financial Condition.

FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. First Commonwealth evaluates impairment quarterly and has concluded that the par value of its investment in FHLB stock will be recovered. Accordingly, no impairment charge was recorded on these securities during the three months ended March 31, 2018.

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Loans and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2018

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:

	March 31, 2018						December 31, 2017
	Originated		Acquired		Total		Originated		Acquired		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,093,192	$	38,402	$	1,131,594	$	1,122,741	$	40,642	$	1,163,383
Real estate construction	245,841		1,120		246,961		242,905		5,963		248,868
Residential real estate	1,220,989		213,634		1,434,623		1,206,119		220,251		1,426,370
Commercial real estate	1,901,609		125,463		2,027,072		1,892,185		126,911		2,019,096
Loans to individuals	535,484		5,571		541,055		543,411		6,248		549,659
Total loans	$	4,997,115	$	384,190	$	5,381,305	$	5,007,361	$	400,015	$	5,407,376

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 Company’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. Movement between these rating categories provides a predictive measure of credit losses and therefore assists 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:

	March 31, 2018
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated loans
Pass	$	1,020,603	$	245,841	$	1,209,290	$	1,871,008	$	535,240	$	4,881,982
Non-Pass
OAEM	31,480		—		1,574		7,748		—		40,802
Substandard	34,140		—		10,125		22,853		244		67,362
Doubtful	6,969		—		—		—		—		6,969
Total Non-Pass	72,589		—		11,699		30,601		244		115,133
Total	$	1,093,192	$	245,841	$	1,220,989	$	1,901,609	$	535,484	$	4,997,115
Acquired loans
Pass	$	32,439	$	1,120	$	211,361	$	122,411	$	5,554	$	372,885
Non-Pass
OAEM	5,486		—		745		1,251		—		7,482
Substandard	477		—		1,528		1,801		17		3,823
Doubtful	—		—		—		—		—		—
Total Non-Pass	5,963		—		2,273		3,052		17		11,305
Total	$	38,402	$	1,120	$	213,634	$	125,463	$	5,571	$	384,190

	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

Portfolio Risks

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

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 March 31, 2018. 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 March 31, 2018 and December 31, 2017. 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.

	March 31, 2018
	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	$	2,163	$	23	$	168	$	24,298	$	26,652	$	1,066,540	$	1,093,192
Real estate construction	—		—		—		—		—		245,841		245,841
Residential real estate	2,849		996		649		6,187		10,681		1,210,308		1,220,989
Commercial real estate	1,751		783		304		5,675		8,513		1,893,096		1,901,609
Loans to individuals	1,369		463		768		244		2,844		532,640		535,484
Total	$	8,132	$	2,265	$	1,889	$	36,404	$	48,690	$	4,948,425	$	4,997,115
Acquired loans
Commercial, financial, agricultural and other	$	11	$	—	$	26	$	411	$	448	$	37,954	$	38,402
Real estate construction	—		—		—		—		—		1,120		1,120
Residential real estate	119		110		21		718		968		212,666		213,634
Commercial real estate	—		—		—		1,000		1,000		124,463		125,463
Loans to individuals	66		11		19		17		113		5,458		5,571
Total	$	196	$	121	$	66	$	2,146	$	2,529	$	381,661	$	384,190

	December 31, 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

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 on 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 becomes 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 for repayment of 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 also 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.

At March 31, 2018 and December 31, 2017, there were no nonaccrual loans held for sale. There were no gains or losses recognized on sales of impaired loans during the three months endedMarch 31, 2018 and 2017.

The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of March 31, 2018 and December 31, 2017. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired. Average balances are calculated using month-end balances of the loans for the period reported and are included in the table below based on their period-end allowance position.

	March 31, 2018						December 31, 2017
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(dollars in thousands)
Originated loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	4,791	$	9,559			$	5,548	$	12,153
Real estate construction	—		—				—		—
Residential real estate	10,129		12,000				10,625		12,470
Commercial real estate	4,624		5,038				5,155		5,489
Loans to individuals	339		379				347		383
Subtotal	19,883		26,976				21,675		30,495
With an allowance recorded:
Commercial, financial, agricultural and other	28,615		28,795		$	9,045	16,866		21,094		$	3,478
Real estate construction	—		—		—		—		—		—
Residential real estate	808		846		277		456		478		107
Commercial real estate	5,753		5,763		2,139		954		954		128
Loans to individuals	—		—		—		—		—		—
Subtotal	35,176		35,404		11,461		18,276		22,526		3,713
Total	$	55,059	$	62,380	$	11,461	$	39,951	$	53,021	$	3,713

	March 31, 2018						December 31, 2017
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(dollars in thousands)
Acquired loans
With no related allowance recorded:
Commercial, financial, agricultural and other	$	411	$	424			$	436	$	449
Real estate construction	—		—				—		—
Residential real estate	677		1,003				666		965
Commercial real estate	891		1,811				940		1,842
Loans to individuals	17		17				17		17
Subtotal	1,996		3,255				2,059		3,273
With an allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—		$	—
Real estate construction	—		—		—		—		—		—
Residential real estate	93		122		10		93		122		4
Commercial real estate	109		124		2		137		150		29
Loans to individuals	—		—		—		—		—		—
Subtotal	202		246		12		230		272		33
Total	$	2,198	$	3,501	$	12	$	2,289	$	3,545	$	33

	For the Three Months Ended March 31,
	2018								2017
	Originated Loans				Acquired Loans				Originated Loans				Acquired Loans
	Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other	$	8,130	$	10	$	411	$	—	$	12,034	$	38	$	—	$	—
Real estate construction	—		—		—		—		—		—		—		—
Residential real estate	10,401		63		678		1		11,422		74		241		—
Commercial real estate	5,510		31		907		—		5,949		54		162		—
Loans to individuals	354		2		17		—		338		2		—		—
Subtotal	24,395		106		2,013		1		29,743		168		403		—
With an allowance recorded:
Commercial, financial, agricultural and other	17,720		66		—		—		12,787		26		—		—
Real estate construction	—		—		—		—		—		—		—		—
Residential real estate	706		—		93		—		334		1		65		—
Commercial real estate	1,960		1		118		—		1,111		7		—		—
Loans to individuals	—		—		—		—		—		—		—		—
Subtotal	20,386		67		211		—		14,232		34		65		—
Total	$	44,781	$	173	$	2,224	$	1	$	43,975	$	202	$	468	$	—

Unfunded commitments related to nonperforming loans were $4.2 million at March 31, 2018 and $2.4 million at December 31, 2017. After consideration of the requirements to draw and available collateral related to these commitments, a reserve of $0.4 million and $0.2 million was established for these off balance sheet exposures at March 31, 2018 and December 31, 2017, 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:

	March 31, 2018		December 31, 2017
	(dollars in thousands)
Troubled debt restructured loans
Accrual status	$	18,707	$	11,563
Nonaccrual status	10,233		11,222
Total	$	28,940	$	22,785
Commitments
Letters of credit	$	60	$	60
Unused lines of credit	1,778		54
Total	$	1,838	$	114

The following tables provide detail, including specific reserves and reasons for modification, related to loans identified as troubled debt restructurings:

	For the Three Months Ended March 31, 2018
		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	2	$	4,709	$	—	$	162	$	4,871	$	3,942	$	531
Residential real estate	11	20		75		346		441		404		17
Commercial real estate	1	3,017		—		—		3,017		2,994		227
Loans to individuals	4	—		28		30		58		53		—
Total	18	$	7,746	$	103	$	538	$	8,387	$	7,393	$	775

	For the Three Months Ended March 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	1	$	—	$	42	$	—	$	42	$	38	$	—
Residential real estate	7	129		101		306		536		504		—
Commercial real estate	2	179		—		16		195		193		—
Loans to individuals	3	—		14		30		44		43		—
Total	13	$	308	$	157	$	352	$	817	$	778	$	—

The troubled debt restructurings included in the above tables are also included in the impaired loan tables provided earlier in this note. Loans defined as modified due to a change in rate may include loans that were modified for a change in rate as well as a re-amortization of the principal and an extension of the maturity. For the three months endedMarch 31, 2018 and 2017, $0.1 million and $0.2 million, respectively, of total rate modifications represent loans with modifications to the rate as well as payment as a result of re-amortization. For both 2018 and 2017 the changes in loan balances between the pre-modification balance and the post-modification balance are due to customer payments.

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 loans that were restructured within the past twelve months and that were considered to be in default during the three months endedMarch 31:

	2018			2017
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars in thousands)
Commercial, financial, agricultural and other	1	$	940	—	$	—
Total	1	$	940	—	$	—

The following tables provide detail related to the allowance for credit losses:

	For the Three Months Ended March 31, 2018
	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	$	23,418			$	1,349		$	2,753		$	17,328		$	3,404		$	48,252
Charge-offs	(290		)		—			(455		)	(168		)	(1,169		)	(2,082		)
Recoveries	256				1			75			69			195			596
Provision (credit)	4,148				(236		)	768			1,265			986			6,931
Ending balance	27,532				1,114			3,141			18,494			3,416			53,697
Acquired loans:
Beginning balance	11				—			6			29			—			46
Charge-offs	—				—			(16		)	—			(4		)	(20		)
Recoveries	7			—	6			17			—			7			37
Provision (credit)	2				(6		)	6			(27		)	(3		)	(28		)
Ending balance	20				—			13			2			—			35
Total ending balance	$	27,552			$	1,114		$	3,154		$	18,496		$	3,416		$	53,732
Ending balance: individually evaluated for impairment	$	9,045			$	—		$	287		$	2,141		$	—		$	11,473
Ending balance: collectively evaluated for impairment	18,507				1,114			2,867			16,355			3,416			42,259
Loans:
Ending balance	1,131,594				246,961			1,434,623			2,027,072			541,055			5,381,305
Ending balance: individually evaluated for impairment	33,278				—			6,853			10,360			—			50,491
Ending balance: collectively evaluated for impairment	1,098,316				246,961			1,427,770			2,016,712			541,055			5,330,814

	For the Three Months Ended March 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	(3,825		)		—			(465		)	(31		)	(1,198		)	(5,519		)
Recoveries	368				54			122			117			128			789
Provision (credit)	2,184				(17		)	265			(123		)	900			3,209
Ending balance	34,701				614			2,414			6,582			4,334			48,645
Acquired loans:
Beginning balance	—				—			19			—			—			19
Charge-offs	—				—			(8		)	—			(7		)	(15		)
Recoveries	—			—	—			6			—			1			7
Provision (credit)	—				—			14			—			6			20
Ending balance	—				—			31			—			—			31
Total ending balance	$	34,701			$	614		$	2,445		$	6,582		$	4,334		$	48,676
Ending balance: individually evaluated for impairment	$	2,466			$	—		$	175		$	376		$	—		$	3,017
Ending balance: collectively evaluated for impairment	32,235				614			2,270			6,206			4,334			45,659
Loans:
Ending balance	1,148,460				240,122			1,217,398			1,761,101			540,880			4,907,961
Ending balance: individually evaluated for impairment	26,260				—			6,287			5,819			—			38,366
Ending balance: collectively evaluated for impairment	1,122,200				240,122			1,211,111			1,755,282			540,880			4,869,595

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Income Taxes

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

At March 31, 2018 and December 31, 2017, First Commonwealth had no material unrecognized tax benefits or accrued interest and penalties. If applicable, First Commonwealth will record interest and penalties as a component of noninterest expense. Federal and state returns for tax years 2014 and forward remain open for examination as of March 31, 2018.

During the first quarter of 2018, First Commonwealth adopted ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". Adoption of this ASU reclassified the stranded other accumulated income of $1.3 million resulting from the tax reform passed in December 2017 from accumulated other comprehensive income to retained earnings. There was no impact to total equity as a result of the adoption of this update. During the first quarter of 2017, First Commonwealth adopted ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718)." Adoption of this ASU resulted in a $0.1 million tax benefit.

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Fair Values of Assets and Liabilities

3 Months Ended

Mar. 31, 2018

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 Condensed Consolidated Statements of Financial Condition or in the “Other assets” category of the Condensed 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, corporate securities, FHLB stock, loans held for sale, interest rate derivatives (including interest rate caps, interest rate swaps 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 recorded in the Condensed Consolidated Statements of Financial Condition are comprised of FHLB stock whose estimated fair value is based on its par value. Additional information on FHLB stock is provided in Note 7, “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. Also included in loans

held for sale are commercial loans for which fair value is determined using an executed trade or market bid obtained from potential buyers.

Interest rate derivatives are reported at an estimated fair value utilizing Level 2 inputs and are included in other assets and other liabilities, and 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 11, “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 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 2018, we have not realized any losses due to a counterparty's inability to pay any uncollateralized positions.

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 other real estate owned and certain impaired loans.

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 is more appropriate to determine estimated fair value using a discounted cash flow analysis. Detail on our process for determining the appropriate cash flows for this analysis is provided in Note 7, “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 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 a 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	$	14,132		Discounted Cash Flow	Probability of default	0% - 100% (7.42%)
					Prepayment rates	0% - 71.89% (8.73%)
					Discount rates	5% - 11.5% (a)
Equities	1,670			Par Value	N/A	N/A
Impaired Loans	1,290		(b)	Reserve study	Discount rate	10.00%
					Gas per MMBTU	$2.81 - $3.35 (c)
					Oil per BBL/d	$51.59 - $59.55 (c)
	11,181		(b)	Discounted Cash Flow	Discount Rate	1.9% - 21.0%
Limited Partnership Investments	2,292			Par Value	N/A	N/A

(a) Incorporates spread over 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 - 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:

	March 31, 2018
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities - Residential	$	—	$	10,665	$	—	$	10,665
Mortgage-Backed Securities - Commercial	—		72,137		—		72,137
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities - Residential	—		664,788		—		664,788
Other Government-Sponsored Enterprises	—		1,098		—		1,098
Obligations of States and Political Subdivisions	—		27,161		—		27,161
Corporate Securities	—		21,226		—		21,226
Pooled Trust Preferred Collateralized Debt Obligations	—		—		14,132		14,132
Total Debt Securities	—		797,075		14,132		811,207
Equities	—		—		1,670		1,670
Total Securities Available for Sale	—		797,075		15,802		812,877
Other Investments	—		24,400		—		24,400
Loans Held for Sale	—		9,759		—		9,759
Other Assets(a)	—		4,355		2,292		6,647
Total Assets	$	—	$	835,589	$	18,094	$	853,683
Other Liabilities(a)	$	—	$	4,879	$	—	$	4,879
Total Liabilities	$	—	$	4,879	$	—	$	4,879

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

	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
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

For the three months endedMarch 31, changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	2018
	Pooled Trust Preferred Collateralized Debt Obligations			Equities		Other Assets		Total
	(dollars in thousands)
Balance, beginning of period	$	23,646		$	1,670	$	2,143	$	27,459
Total gains or losses
Included in earnings	2,840			—		—		2,840
Included in other comprehensive income	4,529			—		—		4,529
Purchases, issuances, sales and settlements
Purchases	—			—		149		149
Issuances	—			—		—		—
Sales	—			—		—		—
Settlements	(16,883		)	—		—		(16,883		)
Transfers from Level 3	—			—		—		—
Transfers into Level 3	—			—		—		—
Balance, end of period	$	14,132		$	1,670	$	2,292	$	18,094

	2017
	Pooled Trust Preferred Collateralized Debt Obligations			Equities		Other Assets		Total
	(dollars in thousands)
Balance, beginning of period	$	33,292		$	1,670	$	930	$	35,892
Total gains or losses
Included in earnings	—			—		—		—
Included in other comprehensive income	497			—		—		497
Purchases, issuances, sales and settlements
Purchases	—			—		410		410
Issuances	—			—		—		—
Sales	—			—		—		—
Settlements	(48		)	—		—		(48		)
Transfers from Level 3	—			—				—
Transfers into Level 3	—			—		—		—
Balance, end of period	$	33,741		$	1,670	$	1,340	$	36,751

During the three months endedMarch 31, 2018 and 2017, there were no transfers between fair value Levels 1, 2 or 3. There were no gains or losses included in earnings for the periods presented that are attributable to the change in realized gains (losses) relating to assets held at March 31, 2018 and 2017.

The tables below present the balances of assets measured at fair value on a nonrecurring basis at:

	March 31, 2018
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Impaired loans	$	—	$	26,546	$	19,238	$	45,784
Other real estate owned	—		3,278		—		3,278
Total Assets	$	—	$	29,824	$	19,238	$	49,062

	December 31, 2017
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Impaired loans	$	—	$	23,249	$	15,245	$	38,494
Other real estate owned	—		3,264		—		3,264
Total Assets	$	—	$	26,513	$	15,245	$	41,758

The following gain (losses) were realized on the assets measured on a nonrecurring basis:

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands)
Impaired loans	$	(7,850	)	$	(1,460	)
Other real estate owned	(30		)	(31		)
Total losses	$	(7,880	)	$	(1,491	)

Impaired loans over $100 thousand are individually reviewed to determine the amount of each loan considered to be at risk of non-collection. 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. OREO has a current carrying value of $3.0 million as of March 31, 2018 and consists primarily of residential and 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 cost to sell, as determined by valuation techniques appropriate in the circumstances.

Certain other assets and liabilities, including goodwill and core deposit 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 goodwill is provided in Note 12, “Goodwill.” There were no other assets or liabilities measured at fair value on a nonrecurring basis during the three months endedMarch 31, 2018.

FASB ASC 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 securities available for sale and held to maturity 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 obligations values 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. 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: 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.

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

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 fair value for standby letters of credit was $0.2 million at March 31, 2018 and December 31, 2017. See Note 5, “Commitments and Contingent Liabilities,” 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 their fair values 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 type 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 is estimated by discounting the future cash flows using First Commonwealth’s estimate of the current market rate for similar types of borrowing arrangements or an announced redemption price.

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

	March 31, 2018
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	65,886	$	65,886	$	65,886	$	—	$	—
Interest-bearing deposits	9,736		9,736		9,736		—		—
Securities available for sale	812,877		812,877		—		797,075		15,802
Securities held to maturity	410,430		399,528		—		399,528		—
Other investments	24,400		24,400		—		24,400		—
Loans held for sale	9,759		9,759		—		9,759		—
Loans	5,381,305		5,399,240		—		26,546		5,372,694
Financial liabilities
Deposits	5,703,522		5,701,021		—		5,701,021		—
Short-term borrowings	588,016		587,834		—		587,834		—
Subordinated debt	72,167		70,114		—		—		70,114
Long-term debt	8,011		8,237		—		8,237		—
Capital lease obligation	7,498		7,498		—		7,498		—

	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		—
Subordinated debt	72,167		65,785		—		—		65,785
Long-term debt	8,161		8,548		—		8,548		—
Capital Lease Obligation	7,590		7,590		—		7,590		—

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Derivatives

3 Months Ended

Mar. 31, 2018

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 37 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 twelve 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 that provide 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 two interest rate swap contracts that were designated as cash flow hedges. The interest rate swaps have a total notional amount of $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 $115.0 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 Condensed Consolidated Statements of Income. For the three months endedMarch 31, 2018, there was a $0.1 million negative impact on interest income as a result of these interest rate swaps, respectively. 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 Condensed Consolidated Statements of Income as the income on the hedged items. The cash flow hedges were highly effective at March 31, 2018 and December 31, 2017, 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 Condensed Consolidated Statements of Income. The impact to noninterest expense for the three months endedMarch 31, 2018 totaled $62 thousand.

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 March 31, 2018, the underlying funded mortgage loan commitments had a carrying value of $7.0 million and a fair value of $7.2 million, while the underlying unfunded mortgage loan commitments had a notional amount of $18.3 million. 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 Condensed Consolidated Statements of Income. The impact on other noninterest expense for the three months endedMarch 31, 2018 totaled $3 thousand. At March 31, 2018 and December 31, 2017, the underlying loans had a carrying value of $7.8 million and $10.0 million, respectively, and a fair value of $7.8 million and $10.1 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:

	March 31, 2018			December 31, 2017
	(dollars in thousands)
Derivatives not Designated as Hedging Instruments
Credit value adjustment	$	(2	)	$	(791	)
Notional amount:
Interest rate derivatives	408,973			401,304
Interest rate caps	46,361			46,444
Risk participation agreements	189,491			197,660
Sold credit protection on risk participation agreements	(63,345		)	(46,170		)
Derivatives Designated as Hedging Instruments
Interest rate swaps:
Fair value adjustment	(590		)	459
Notional amount	115,000			150,000
Interest rate forwards:
Fair value adjustment	81			19
Notional amount	22,000			17,000
Foreign exchange forwards:
Fair value adjustment	(13		)	(70		)
Notional amount	7,858			10,077

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 Condensed Consolidated Statements of Income:

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands)
Non-hedging interest rate derivatives
Increase in other income	$	789		$	2
Hedging interest rate derivatives
(Decrease) increase in interest and fees on loans	(81		)	249
Increase in other expense	—			78
Hedging interest rate forwards
(Decrease) increase in other expense	(62		)	112
Hedging foreign exchange forwards
(Decrease) increase in other expense	(3		)	2

The fair value of our derivatives is included in a table in Note 10, “Fair Values of Assets and Liabilities,” in the line items

“Other assets” and “Other liabilities.”

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Goodwill

3 Months Ended

Mar. 31, 2018

Goodwill Disclosure [Abstract]

Goodwill

Goodwill

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 that 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 March 31, 2018 and December 31, 2017 was $255.2 million and $255.4 million, respectively. Goodwill decreased $0.2 million during the three months endedMarch 31, 2018 as a result of deferred tax adjustments related to the DCB Financial ("DCB") acquisition. No impairment charges on goodwill or other intangible assets were incurred in 2018 or 2017.

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.

As of March 31, 2018, 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.

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New Accounting Pronouncements (Notes)

3 Months Ended

Mar. 31, 2018

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

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. Additionally, in January 2018, the FASB issued ASU No. 2018-01, "Leases (Topic 842)" providing an optional practical expedient to Topic 842. 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. Management is currently evaluating the impact of the amended guidance on First Commonwealth’s financial condition or results of operations.

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 No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 22)" allowing a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. This amendment also requires certain disclosures about the stranded tax effects, including disclosure of the policy for releasing income tax effects from accumulated other comprehensive income and the impact if the entity elected to reclassify the income tax effects or, if the entity did not elect to reclassify, a statement that the entity did not elect to reclassify. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted this ASU as of January 1, 2018. Adoption of this ASU did not have a material impact on First Commonwealth's financial condition or results of operations.

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Subsequent Event (Notes)

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Event

On May 1, 2018, the Company completed its acquisition of Garfield Acquisition Corp., and its banking subsidiary,

Foundation Bank. Foundation has approximately $207 million in assets and operates five full-service

banking offices which will operate under the First Commonwealth name.

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Supplemental Comprehensive Income Disclosures (Tables)

3 Months Ended

Mar. 31, 2018

Supplemental Comprehensive Income Disclosures [Abstract]

Supplemental Comprehensive Income Disclosures

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

	For the Three Months Ended March 31,
	2018								2017
	Pretax Amount			Tax (Expense) Benefit		Net of Tax Amount			Pretax Amount			Tax (Expense) Benefit			Net of Tax Amount
	(dollars in thousands)
Unrealized (losses) gains on securities:
Unrealized holding (losses) gains on securities arising during the period	$	(3,982	)	$	837	$	(3,145	)	$	2,543		$	(890	)	$	1,653
Reclassification adjustment for gains on securities included in net income	(2,840		)	596		(2,244		)	(652		)	228			(424		)
Total unrealized (losses) gains on securities	(6,822		)	1,433		(5,389		)	1,891			(662		)	1,229
Unrealized losses on derivatives:
Unrealized holding losses on derivatives arising during the period	(130		)	27		(103		)	(516		)	181			(335		)
Reclassification adjustment for losses on derivatives included in net income	—			—		—			78			(28		)	50
Total unrealized losses on derivatives	(130		)	27		(103		)	(438		)	153			(285		)
Total other comprehensive (loss) income	$	(6,952	)	$	1,460	$	(5,492	)	$	1,453		$	(509	)	$	944

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table details the change in components of OCI for the three months endedMarch 31:

	2018											2017
	Securities Available for Sale			Post-Retirement Obligation		Derivatives			Accumulated Other Comprehensive Income (Loss)			Securities Available for Sale			Post-Retirement Obligation		Derivatives			Accumulated Other Comprehensive Income (Loss)
	(dollars in thousands)
Balance at December 31	$	(6,166	)	$	299	$	(306	)	$	(6,173	)	$	(7,455	)	$	225	$	203		$	(7,027	)
Cumulative effect of adoption of ASU 2018-02	(1,344		)	—		—			(1,344		)	—			—		—			—
Balance at January 1	(7,510		)	299		(306		)	(7,517		)	(7,455		)	225		203			(7,027		)
Other comprehensive (loss) income before reclassification adjustment	(3,145		)	—		(103		)	(3,248		)	1,653			—		(335		)	1,318
Amounts reclassified from accumulated other comprehensive (loss) income	(2,244		)	—		—			(2,244		)	(424		)	—		50			(374		)
Net other comprehensive (loss) income during the period	(5,389		)	—		(103		)	(5,492		)	1,229			—		(285		)	944
Balance at March 31	$	(12,899	)	$	299	$	(409	)	$	(13,009	)	$	(6,226	)	$	225	$	(82	)	$	(6,083	)

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Supplemental Cash Flow Disclosures (Tables)

3 Months Ended

Mar. 31, 2018

Supplemental Cash Flow Information [Abstract]

Schedule of Supplemental Cash Flow Disclosures

The following table presents information related to cash paid during the period for interest, as well as detail on non-cash investing and financing activities for the three months endedMarch 31:

	2018			2017
	(dollars in thousands)
Cash paid during the period for:
Interest	$	7,072		$	3,832
Income taxes	28			1,039
Non-cash investing and financing activities:
Loans transferred to other real estate owned and repossessed assets	1,186			958
Loans transferred from held to maturity to held for sale	8,019			3,613
Gross (decrease) increase in market value adjustment to securities available for sale	(6,822		)	1,892
Gross decrease in market value adjustment to derivatives	(131		)	(438		)
Investments committed to purchase, not settled	—			498
Noncash treasury stock reissuance	2,257			2,258
Proceeds from death benefit on bank-owned life insurance not received	2,306			—

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2018

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 computations:

	For the Three Months Ended March 31,
	2018		2017
Weighted average common shares issued	113,914,902		105,563,455
Average treasury stock shares	(16,369,144	)	(16,527,204	)
Average deferred compensation shares	(37,411	)	—
Average unearned nonvested shares	(75,210	)	(106,359	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share	97,433,137		88,929,892
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share	130,614		57,779
Additional common stock equivalents (deferred compensation) used to calculate diluted earnings per share	37,411		—
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share	97,601,162		88,987,671

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 three months endedMarch 31 because to do so would have been antidilutive.

	2018					2017
		Price Range					Price Range
	Shares	From		To		Shares	From		To
Restricted Stock	37,298	$	9.84	$	14.49	13,750	$	13.96	$	13.96
Restricted Stock Units	43,067	$	13.25	$	15.83	24,375	$	15.09	$	15.09

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Commitments and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Notional Amount of Outstanding Commitments

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

	March 31, 2018		December 31, 2017
	(dollars in thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,782,701	$	1,840,180
Financial standby letters of credit	17,636		17,946
Performance standby letters of credit	21,328		20,472
Commercial letters of credit	1,055		1,149

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Held-to-maturity Securities [Line Items]

Analysis of Amortized Cost and Estimated Fair Value of Securities Available for Sale

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

	March 31, 2018									December 31, 2017
	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	$	10,100	$	646	$	(81	)	$	10,665	$	10,556	$	789	$	(7	)	$	11,338
Mortgage-Backed Securities – Commercial	73,389		—		(1,252		)	72,137		24,611		—		(462		)	24,149
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	681,343		1,913		(18,468		)	664,788		632,422		2,622		(9,489		)	625,555
Other Government-Sponsored Enterprises	1,100		—		(2		)	1,098		1,098		—		(1		)	1,097
Obligations of States and Political Subdivisions	27,086		121		(46		)	27,161		27,083		327		—			27,410
Corporate Securities	20,898		542		(214		)	21,226		15,907		590		(4		)	16,493
Pooled Trust Preferred Collateralized Debt Obligations	13,602		1,252		(722		)	14,132		27,499		526		(4,379		)	23,646
Total Debt Securities	827,518		4,474		(20,785		)	811,207		739,176		4,854		(14,342		)	729,688
Equities	1,670		—		—			1,670		1,670		—		—			1,670
Total Securities Available for Sale	$	829,188	$	4,474	$	(20,785	)	$	812,877	$	740,846	$	4,854	$	(14,342	)	$	731,358

Amortized Cost and Estimated Fair Value of Debt Securities Available for Sale

The amortized cost and estimated fair value of debt securities available for sale at March 31, 2018, by contractual maturity, are shown below.

	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	5,099	$	5,073
Due after 1 but within 5 years	15,727		15,541
Due after 5 but within 10 years	26,337		26,409
Due after 10 years	15,523		16,594
	62,686		63,617
Mortgage-Backed Securities (a)	764,832		747,590
Total Debt Securities	$	827,518	$	811,207

(a) Mortgage-Backed Securities include an amortized cost of $83.5 million and a fair value of $82.8 million for Obligations of U.S.

Proceeds from Sale, Gross Gains (Losses) Realized on Sales, Maturities and Other-Than-Temporary Impairment Charges Related to Securities Available for Sale

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 three months endedMarch 31:

	2018		2017
	(dollars in thousands)
Proceeds from sales	$	—	$	—
Gross gains (losses) realized:
Sales Transactions:
Gross gains	$	—	$	—
Gross losses	—		—
	—		—
Maturities and impairment
Gross gains	2,840		652
Gross losses	—		—
	2,840		652
Net gains and impairment	$	2,840	$	652

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Investment Securities Maturity of Held-to-Maturity Securities (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Held-to-maturity Securities [Line Items]

Held-to-maturity Securities [Table Text Block]

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

	March 31, 2018									December 31, 2017
	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	$	3,895	$	—	$	(109	)	$	3,786	$	3,925	$	—	$	(14	)	$	3,911
Mortgage-Backed Securities- Commercial	57,762		—		(2,224		)	55,538		58,249		—		(1,394		)	56,855
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	294,205		—		(7,645		)	286,560		305,126		10		(2,552		)	302,584
Mortgage-Backed Securities – Commercial	13,859		—		(299		)	13,560		14,056		—		(71		)	13,985
Obligations of States and Political Subdivisions	40,509		38		(660		)	39,887		40,540		335		(161		)	40,714
Debt Securities Issued by Foreign Governments	200		—		(3		)	197		200		—		—			200
Total Securities Held to Maturity	$	410,430	$	38	$	(10,940	)	$	399,528	$	422,096	$	345	$	(4,192	)	$	418,249

Schedule of Held-to-Maturity Securities by Maturity [Table Text Block]

The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2018, 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	$	86
Due after 1 but within 5 years	3,646		3,626
Due after 5 but within 10 years	35,350		34,764
Due after 10 years	1,626		1,608
	40,709		40,084
Mortgage-Backed Securities (a)	369,721		359,444
Total Debt Securities	$	410,430	$	399,528

(a) Mortgage-Backed Securities include an amortized cost of $61.7 million and a fair value of $59.3 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $308.1 million and a fair value of $300.1 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)

3 Months Ended

Mar. 31, 2018

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 by investment category and time frame for which securities have been in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	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		)
Obligation 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	)

The following table presents the gross unrealized losses and estimated fair values at March 31, 2018 for both available for sale and held to maturity securities by investment category and time frame for which securities have been in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	7,923	$	(190	)	$	—	$	—		$	7,923	$	(190	)
Mortgage-Backed Securities – Commercial	95,862		(2,120		)	31,813		(1,356		)	127,675		(3,476		)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	500,625		(10,277		)	378,709		(15,836		)	879,334		(26,113		)
Mortgage-Backed Securities – Commercial	13,560		(299		)	—		—			13,560		(299		)
Other Government-Sponsored Enterprises	999		(1		)	99		(1		)	1,098		(2		)
Obligations of States and Political Subdivisions	31,032		(413		)	3,489		(293		)	34,521		(706		)
Debt securities issued by foreign governments	197		(3		)	—		—			197		(3		)
Corporate Securities	18,764		(214		)	—		—			18,764		(214		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			6,362		(722		)	6,362		(722		)
Total Securities	$	668,962	$	(13,517	)	$	420,472	$	(18,208	)	$	1,089,434	$	(31,725	)

Pooled Trust Preferred Collateralized Debt Obligations

The following table provides information related to our pooled trust preferred collateralized debt obligations as of March 31, 2018:

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)
Pre TSL IV	Mezzanine	$	933	$	738	$	(195	)	Ba1/BB	5	—	%	113.79	%
Pre TSL VIII	Mezzanine	2,072		2,295		223			C/C	26	38.52		0.00
Pre TSL IX	Mezzanine	2,457		3,000		543			B1/C	37	27.83		19.46
Pre TSL X	Mezzanine	1,894		2,301		407			Caa1/C	41	26.29		1.73
Pre TSL XII	Mezzanine	6,151		5,624		(527		)	B3/C	64	23.39		0.00
MMCap I	Mezzanine	95		174		79			Ca/C	7	69.35		69.99
Total		$	13,602	$	14,132	$	530

Cumulative Roll Forward of Credit Losses Recognized in Earnings for Debt Securities held and not Intended to be Sold

The following table provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold:

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands)
Balance, beginning (a)	$	12,208		$	17,056
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)	(147		)	(228		)
Reduction for debt securities called during the period	(2,302		)	—
Balance, ending	$	9,759		$	16,828

(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 in interest income during the period.

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Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2018

Loans and Leases Receivable Disclosure [Abstract]

Outstanding Balances of Loan

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

	March 31, 2018						December 31, 2017
	Originated		Acquired		Total		Originated		Acquired		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,093,192	$	38,402	$	1,131,594	$	1,122,741	$	40,642	$	1,163,383
Real estate construction	245,841		1,120		246,961		242,905		5,963		248,868
Residential real estate	1,220,989		213,634		1,434,623		1,206,119		220,251		1,426,370
Commercial real estate	1,901,609		125,463		2,027,072		1,892,185		126,911		2,019,096
Loans to individuals	535,484		5,571		541,055		543,411		6,248		549,659
Total loans	$	4,997,115	$	384,190	$	5,381,305	$	5,007,361	$	400,015	$	5,407,376

Credit Risk Profile by Creditworthiness

The following tables represent our credit risk profile by creditworthiness:

	March 31, 2018
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated loans
Pass	$	1,020,603	$	245,841	$	1,209,290	$	1,871,008	$	535,240	$	4,881,982
Non-Pass
OAEM	31,480		—		1,574		7,748		—		40,802
Substandard	34,140		—		10,125		22,853		244		67,362
Doubtful	6,969		—		—		—		—		6,969
Total Non-Pass	72,589		—		11,699		30,601		244		115,133
Total	$	1,093,192	$	245,841	$	1,220,989	$	1,901,609	$	535,484	$	4,997,115
Acquired loans
Pass	$	32,439	$	1,120	$	211,361	$	122,411	$	5,554	$	372,885
Non-Pass
OAEM	5,486		—		745		1,251		—		7,482
Substandard	477		—		1,528		1,801		17		3,823
Doubtful	—		—		—		—		—		—
Total Non-Pass	5,963		—		2,273		3,052		17		11,305
Total	$	38,402	$	1,120	$	213,634	$	125,463	$	5,571	$	384,190

	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

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 March 31, 2018 and December 31, 2017. 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.

	March 31, 2018
	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	$	2,163	$	23	$	168	$	24,298	$	26,652	$	1,066,540	$	1,093,192
Real estate construction	—		—		—		—		—		245,841		245,841
Residential real estate	2,849		996		649		6,187		10,681		1,210,308		1,220,989
Commercial real estate	1,751		783		304		5,675		8,513		1,893,096		1,901,609
Loans to individuals	1,369		463		768		244		2,844		532,640		535,484
Total	$	8,132	$	2,265	$	1,889	$	36,404	$	48,690	$	4,948,425	$	4,997,115
Acquired loans
Commercial, financial, agricultural and other	$	11	$	—	$	26	$	411	$	448	$	37,954	$	38,402
Real estate construction	—		—		—		—		—		1,120		1,120
Residential real estate	119		110		21		718		968		212,666		213,634
Commercial real estate	—		—		—		1,000		1,000		124,463		125,463
Loans to individuals	66		11		19		17		113		5,458		5,571
Total	$	196	$	121	$	66	$	2,146	$	2,529	$	381,661	$	384,190

	December 31, 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

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 March 31, 2018 and December 31, 2017. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired. Average balances are calculated using month-end balances of the loans for the period reported and are included in the table below based on their period-end allowance position.

	March 31, 2018						December 31, 2017
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(dollars in thousands)
Originated loans:
With no related allowance recorded:
Commercial, financial, agricultural and other	$	4,791	$	9,559			$	5,548	$	12,153
Real estate construction	—		—				—		—
Residential real estate	10,129		12,000				10,625		12,470
Commercial real estate	4,624		5,038				5,155		5,489
Loans to individuals	339		379				347		383
Subtotal	19,883		26,976				21,675		30,495
With an allowance recorded:
Commercial, financial, agricultural and other	28,615		28,795		$	9,045	16,866		21,094		$	3,478
Real estate construction	—		—		—		—		—		—
Residential real estate	808		846		277		456		478		107
Commercial real estate	5,753		5,763		2,139		954		954		128
Loans to individuals	—		—		—		—		—		—
Subtotal	35,176		35,404		11,461		18,276		22,526		3,713
Total	$	55,059	$	62,380	$	11,461	$	39,951	$	53,021	$	3,713

	March 31, 2018						December 31, 2017
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(dollars in thousands)
Acquired loans
With no related allowance recorded:
Commercial, financial, agricultural and other	$	411	$	424			$	436	$	449
Real estate construction	—		—				—		—
Residential real estate	677		1,003				666		965
Commercial real estate	891		1,811				940		1,842
Loans to individuals	17		17				17		17
Subtotal	1,996		3,255				2,059		3,273
With an allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—		$	—
Real estate construction	—		—		—		—		—		—
Residential real estate	93		122		10		93		122		4
Commercial real estate	109		124		2		137		150		29
Loans to individuals	—		—		—		—		—		—
Subtotal	202		246		12		230		272		33
Total	$	2,198	$	3,501	$	12	$	2,289	$	3,545	$	33

	For the Three Months Ended March 31,
	2018								2017
	Originated Loans				Acquired Loans				Originated Loans				Acquired Loans
	Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other	$	8,130	$	10	$	411	$	—	$	12,034	$	38	$	—	$	—
Real estate construction	—		—		—		—		—		—		—		—
Residential real estate	10,401		63		678		1		11,422		74		241		—
Commercial real estate	5,510		31		907		—		5,949		54		162		—
Loans to individuals	354		2		17		—		338		2		—		—
Subtotal	24,395		106		2,013		1		29,743		168		403		—
With an allowance recorded:
Commercial, financial, agricultural and other	17,720		66		—		—		12,787		26		—		—
Real estate construction	—		—		—		—		—		—		—		—
Residential real estate	706		—		93		—		334		1		65		—
Commercial real estate	1,960		1		118		—		1,111		7		—		—
Loans to individuals	—		—		—		—		—		—		—		—
Subtotal	20,386		67		211		—		14,232		34		65		—
Total	$	44,781	$	173	$	2,224	$	1	$	43,975	$	202	$	468	$	—

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:

	March 31, 2018		December 31, 2017
	(dollars in thousands)
Troubled debt restructured loans
Accrual status	$	18,707	$	11,563
Nonaccrual status	10,233		11,222
Total	$	28,940	$	22,785
Commitments
Letters of credit	$	60	$	60
Unused lines of credit	1,778		54
Total	$	1,838	$	114

The following tables provide detail, including specific reserves and reasons for modification, related to loans identified as troubled debt restructurings:

	For the Three Months Ended March 31, 2018
		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	2	$	4,709	$	—	$	162	$	4,871	$	3,942	$	531
Residential real estate	11	20		75		346		441		404		17
Commercial real estate	1	3,017		—		—		3,017		2,994		227
Loans to individuals	4	—		28		30		58		53		—
Total	18	$	7,746	$	103	$	538	$	8,387	$	7,393	$	775

	For the Three Months Ended March 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	1	$	—	$	42	$	—	$	42	$	38	$	—
Residential real estate	7	129		101		306		536		504		—
Commercial real estate	2	179		—		16		195		193		—
Loans to individuals	3	—		14		30		44		43		—
Total	13	$	308	$	157	$	352	$	817	$	778	$	—

Troubled Debt Restructuring Subsequent Default [Table Text Block]

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 loans that were restructured within the past twelve months and that were considered to be in default during the three months endedMarch 31:

	2018			2017
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars in thousands)
Commercial, financial, agricultural and other	1	$	940	—	$	—
Total	1	$	940	—	$	—

Allowance for Credit Losses

he following tables provide detail related to the allowance for credit losses:

	For the Three Months Ended March 31, 2018
	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	$	23,418			$	1,349		$	2,753		$	17,328		$	3,404		$	48,252
Charge-offs	(290		)		—			(455		)	(168		)	(1,169		)	(2,082		)
Recoveries	256				1			75			69			195			596
Provision (credit)	4,148				(236		)	768			1,265			986			6,931
Ending balance	27,532				1,114			3,141			18,494			3,416			53,697
Acquired loans:
Beginning balance	11				—			6			29			—			46
Charge-offs	—				—			(16		)	—			(4		)	(20		)
Recoveries	7			—	6			17			—			7			37
Provision (credit)	2				(6		)	6			(27		)	(3		)	(28		)
Ending balance	20				—			13			2			—			35
Total ending balance	$	27,552			$	1,114		$	3,154		$	18,496		$	3,416		$	53,732
Ending balance: individually evaluated for impairment	$	9,045			$	—		$	287		$	2,141		$	—		$	11,473
Ending balance: collectively evaluated for impairment	18,507				1,114			2,867			16,355			3,416			42,259
Loans:
Ending balance	1,131,594				246,961			1,434,623			2,027,072			541,055			5,381,305
Ending balance: individually evaluated for impairment	33,278				—			6,853			10,360			—			50,491
Ending balance: collectively evaluated for impairment	1,098,316				246,961			1,427,770			2,016,712			541,055			5,330,814

	For the Three Months Ended March 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	(3,825		)		—			(465		)	(31		)	(1,198		)	(5,519		)
Recoveries	368				54			122			117			128			789
Provision (credit)	2,184				(17		)	265			(123		)	900			3,209
Ending balance	34,701				614			2,414			6,582			4,334			48,645
Acquired loans:
Beginning balance	—				—			19			—			—			19
Charge-offs	—				—			(8		)	—			(7		)	(15		)
Recoveries	—			—	—			6			—			1			7
Provision (credit)	—				—			14			—			6			20
Ending balance	—				—			31			—			—			31
Total ending balance	$	34,701			$	614		$	2,445		$	6,582		$	4,334		$	48,676
Ending balance: individually evaluated for impairment	$	2,466			$	—		$	175		$	376		$	—		$	3,017
Ending balance: collectively evaluated for impairment	32,235				614			2,270			6,206			4,334			45,659
Loans:
Ending balance	1,148,460				240,122			1,217,398			1,761,101			540,880			4,907,961
Ending balance: individually evaluated for impairment	26,260				—			6,287			5,819			—			38,366
Ending balance: collectively evaluated for impairment	1,122,200				240,122			1,211,111			1,755,282			540,880			4,869,595

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Fair Values of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Inputs, Assets, Quantitative Information

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	$	14,132		Discounted Cash Flow	Probability of default	0% - 100% (7.42%)
					Prepayment rates	0% - 71.89% (8.73%)
					Discount rates	5% - 11.5% (a)
Equities	1,670			Par Value	N/A	N/A
Impaired Loans	1,290		(b)	Reserve study	Discount rate	10.00%
					Gas per MMBTU	$2.81 - $3.35 (c)
					Oil per BBL/d	$51.59 - $59.55 (c)
	11,181		(b)	Discounted Cash Flow	Discount Rate	1.9% - 21.0%
Limited Partnership Investments	2,292			Par Value	N/A	N/A

(a) Incorporates spread over 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 - 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:

	March 31, 2018
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities - Residential	$	—	$	10,665	$	—	$	10,665
Mortgage-Backed Securities - Commercial	—		72,137		—		72,137
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities - Residential	—		664,788		—		664,788
Other Government-Sponsored Enterprises	—		1,098		—		1,098
Obligations of States and Political Subdivisions	—		27,161		—		27,161
Corporate Securities	—		21,226		—		21,226
Pooled Trust Preferred Collateralized Debt Obligations	—		—		14,132		14,132
Total Debt Securities	—		797,075		14,132		811,207
Equities	—		—		1,670		1,670
Total Securities Available for Sale	—		797,075		15,802		812,877
Other Investments	—		24,400		—		24,400
Loans Held for Sale	—		9,759		—		9,759
Other Assets(a)	—		4,355		2,292		6,647
Total Assets	$	—	$	835,589	$	18,094	$	853,683
Other Liabilities(a)	$	—	$	4,879	$	—	$	4,879
Total Liabilities	$	—	$	4,879	$	—	$	4,879

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

	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
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

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

For the three months endedMarch 31, changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	2018
	Pooled Trust Preferred Collateralized Debt Obligations			Equities		Other Assets		Total
	(dollars in thousands)
Balance, beginning of period	$	23,646		$	1,670	$	2,143	$	27,459
Total gains or losses
Included in earnings	2,840			—		—		2,840
Included in other comprehensive income	4,529			—		—		4,529
Purchases, issuances, sales and settlements
Purchases	—			—		149		149
Issuances	—			—		—		—
Sales	—			—		—		—
Settlements	(16,883		)	—		—		(16,883		)
Transfers from Level 3	—			—		—		—
Transfers into Level 3	—			—		—		—
Balance, end of period	$	14,132		$	1,670	$	2,292	$	18,094

	2017
	Pooled Trust Preferred Collateralized Debt Obligations			Equities		Other Assets		Total
	(dollars in thousands)
Balance, beginning of period	$	33,292		$	1,670	$	930	$	35,892
Total gains or losses
Included in earnings	—			—		—		—
Included in other comprehensive income	497			—		—		497
Purchases, issuances, sales and settlements
Purchases	—			—		410		410
Issuances	—			—		—		—
Sales	—			—		—		—
Settlements	(48		)	—		—		(48		)
Transfers from Level 3	—			—				—
Transfers into Level 3	—			—		—		—
Balance, end of period	$	33,741		$	1,670	$	1,340	$	36,751

During the three months endedMarch 31, 2018 and 2017, there were no transfers between fair value Levels 1, 2 or 3. There were no gains or losses included in earnings for the periods presented that are attributable to the change in realized gains (losses) relating to assets held at March 31, 2018 and 2017.

Schedule of Assets Measured on Non-Recurring Basis

The tables below present the balances of assets measured at fair value on a nonrecurring basis at:

	March 31, 2018
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Impaired loans	$	—	$	26,546	$	19,238	$	45,784
Other real estate owned	—		3,278		—		3,278
Total Assets	$	—	$	29,824	$	19,238	$	49,062

	December 31, 2017
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Impaired loans	$	—	$	23,249	$	15,245	$	38,494
Other real estate owned	—		3,264		—		3,264
Total Assets	$	—	$	26,513	$	15,245	$	41,758

Losses Realized on Assets Measured on Non-Recurring Basis

The following gain (losses) were realized on the assets measured on a nonrecurring basis:

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands)
Impaired loans	$	(7,850	)	$	(1,460	)
Other real estate owned	(30		)	(31		)
Total losses	$	(7,880	)	$	(1,491	)

Carrying Amounts and Fair Values of Financial Instruments

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

	March 31, 2018
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	65,886	$	65,886	$	65,886	$	—	$	—
Interest-bearing deposits	9,736		9,736		9,736		—		—
Securities available for sale	812,877		812,877		—		797,075		15,802
Securities held to maturity	410,430		399,528		—		399,528		—
Other investments	24,400		24,400		—		24,400		—
Loans held for sale	9,759		9,759		—		9,759		—
Loans	5,381,305		5,399,240		—		26,546		5,372,694
Financial liabilities
Deposits	5,703,522		5,701,021		—		5,701,021		—
Short-term borrowings	588,016		587,834		—		587,834		—
Subordinated debt	72,167		70,114		—		—		70,114
Long-term debt	8,011		8,237		—		8,237		—
Capital lease obligation	7,498		7,498		—		7,498		—

	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		—
Subordinated debt	72,167		65,785		—		—		65,785
Long-term debt	8,161		8,548		—		8,548		—
Capital Lease Obligation	7,590		7,590		—		7,590		—

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Derivatives (Tables)

3 Months Ended

Mar. 31, 2018

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:

	March 31, 2018			December 31, 2017
	(dollars in thousands)
Derivatives not Designated as Hedging Instruments
Credit value adjustment	$	(2	)	$	(791	)
Notional amount:
Interest rate derivatives	408,973			401,304
Interest rate caps	46,361			46,444
Risk participation agreements	189,491			197,660
Sold credit protection on risk participation agreements	(63,345		)	(46,170		)
Derivatives Designated as Hedging Instruments
Interest rate swaps:
Fair value adjustment	(590		)	459
Notional amount	115,000			150,000
Interest rate forwards:
Fair value adjustment	81			19
Notional amount	22,000			17,000
Foreign exchange forwards:
Fair value adjustment	(13		)	(70		)
Notional amount	7,858			10,077

Schedule of Changes 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 Condensed Consolidated Statements of Income:

	For the Three Months Ended March 31,
	2018			2017
	(dollars in thousands)
Non-hedging interest rate derivatives
Increase in other income	$	789		$	2
Hedging interest rate derivatives
(Decrease) increase in interest and fees on loans	(81		)	249
Increase in other expense	—			78
Hedging interest rate forwards
(Decrease) increase in other expense	(62		)	112
Hedging foreign exchange forwards
(Decrease) increase in other expense	(3		)	2

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Revenue Recognition Revenue Recogntion (Tables)

3 Months Ended

Mar. 31, 2018

Revenue Recognition [Abstract]

Revenue Recognition, Transition Adjustment [Table Text Block]

The impact on the condensed consolidated statements of income of adopting ASC 606 for period ending March 31 2018 is outlined below:

	For the Three Months Ended
	March 31, 2018
	As Reported		Under Legacy GAAP		Impact of ASC 606
	(dollars in thousands)
Noninterest Income
Net securities gains	$	2,840	$	2,840	$	—
Trust income	1,928		1,928		—
Service charges on deposit accounts	4,406		4,406		—
Insurance and retail brokerage commissions	1,868		2,248		(380		)
Income from bank owned life insurance	1,494		1,494		—
Gain on sale of mortgage loans	1,484		1,484		—
Gain on sale of other loans and assets	574		574		—
Card-related interchange income	4,742		4,742		—
Derivatives mark to market	789		789		—
Swap fee income (expense)	290		290		—
Other income	1,628		1,854		(226		)
Total noninterest income	22,043		22,649		(606		)
Noninterest Expense
Salaries and employee benefits	24,873		25,253		(380		)
Net occupancy expense	4,369		4,369		—
Furniture and equipment expense	3,540		3,540		—
Data processing expense	2,433		2,509		(76		)
Advertising and promotion expense	809		809		—
Pennsylvania shares tax expense	903		903		—
Intangible amortization	784		784		—
Collection and repossession expense	823		823		—
Other professional fees and services	1,007		1,007		—
FDIC insurance	776		776		—
Loss on sale or write-down of assets	197		197		—
Litigation and operational losses	179		179		—
Merger and acquisition related	337		337		—
Other operating expenses	5,843		5,993		(150		)
Total noninterest expense	$	46,873	$	47,479	(606		)
Net Impact					$	—

Deferred Revenue, by Arrangement, Disclosure [Table Text Block]

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606:

	For the Three Months Ended March 31,
	2018		2017
	(dollars in thousands)
Noninterest Income
In-scope of Topic 606:
Trust income	$	1,928	$	1,417
Service charges on deposit accounts	4,406		4,319
Insurance and retail brokerage commissions	1,868		2,082
Card-related interchange income	4,742		4,251
Gain on sale of other loans and assets	207		190
Other income	892		945
Noninterest Income (in-scope of Topic 606)	14,043		13,204
Noninterest Income (out-of-scope of Topic 606)	8,000		3,728
Total Noninterest Income	$	22,043	$	16,932

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Supplemental Comprehensive Income Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Supplemental Comprehensive Income Disclosures [Abstract]
Unrealized holding gains on securities arising during the period	$ (3,982)	$ 2,543
Reclassification adjustment for gains on securities included in net income	(2,840)	(652)
Total unrealized gains on securities	(6,822)	1,891
Unrealized holding losses on derivatives arising during the period	(130)	(516)
Unrealized holding gains on securities arising during the period	837	(890)
Reclassification adjustment for gains on derivatives included in net income, before Tax	0	78
Total unrealized gain on derivatives	(130)	(438)
Reclassification adjustment for gains on securities included in net income	596	228
Total other comprehensive (loss) income	(6,952)	1,453
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax	1,433	(662)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	27	181
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	0	(28)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Total	27	153
Other Comprehensive Income (Loss), Tax	1,460	(509)
Other comprehensive income (loss) before reclassification adjustment	(3,145)	1,653
Total unrealized (losses) gains on securities	(5,389)	1,229
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(103)	(335)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	0	(50)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Total	(103)	(285)
Total other comprehensive (loss) income	(5,492)	944
Reclassification adjustment for gains on securities included in net income	$ 2,244	$ 424

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Supplemental Comprehensive Income Disclosures (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Beginning Balance	$ (6,173)
Other comprehensive income (loss) before reclassification adjustment	(3,145)	$ 1,653
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(103)	(335)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	0	(50)
Total other comprehensive (loss) income	(5,492)	944
Accumulated Other Comprehensive Income (Loss), Ending Balance	(13,009)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Beginning Balance	(7,510)	(7,455)
Other comprehensive income (loss) before reclassification adjustment	(3,145)	1,653
Amounts reclassified from accumulated other comprehensive income (loss)	(2,244)	(424)
Total other comprehensive (loss) income	(5,389)	1,229
Accumulated Other Comprehensive Income (Loss), Ending Balance	(12,899)	(6,226)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Beginning Balance	299	225
Other comprehensive income (loss) before reclassification adjustment	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Total other comprehensive (loss) income	0	0
Accumulated Other Comprehensive Income (Loss), Ending Balance	299	225
Derivative [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Beginning Balance	(306)	203
Total other comprehensive (loss) income	(103)	(285)
Accumulated Other Comprehensive Income (Loss), Ending Balance	(409)	(82)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Beginning Balance	(7,517)	(7,027)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(3,248)	1,318
Amounts reclassified from accumulated other comprehensive income (loss)	(2,244)	(374)
Total other comprehensive (loss) income	(5,492)	944
Accumulated Other Comprehensive Income (Loss), Ending Balance	(13,009)	(6,083)
Scenario, Previously Reported [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Beginning Balance	(6,166)	(7,455)
Scenario, Previously Reported [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Beginning Balance	299	225
Scenario, Previously Reported [Member] | Derivative [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Beginning Balance	(306)	203
Scenario, Previously Reported [Member] | Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Beginning Balance	$ (6,173)	$ (7,027)
Effect of ASU Adoption [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 0	$ 0
Effect of ASU Adoption [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			(1,344)	0
Effect of ASU Adoption [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			0	0
Effect of ASU Adoption [Member] | Derivative [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			0
Effect of ASU Adoption [Member] | Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ (1,344)	$ 0

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Supplemental Cash Flow Disclosures - Non-cash Investing and Financing Activities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash paid during the period for:
Interest	$ 7,072	$ 3,832
Income Taxes Paid, Net	28	1,039
Non-cash investing and financing activities:
Loans Transferred to Other Real Estate Owned and Repossessions	1,186	958
Fair value of loans transferred from held to maturity to held for sale	8,019	3,613
Gross (decrease) increase in market value adjustment to securities available for sale	(6,822)	1,892
Gross decrease in market value adjustment to derivatives	(131)	(438)
Investments committed to purchase not settled	0	498
Unsettled Bank Owned Life Insurance Proceeds	2,306	0
Other operating expenses	5,843	4,980
Stock Issued During Period, Value, Treasury Stock Reissued	$ 2,257	$ 2,258

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Earnings per Share - Composition of Weighted-Average Common Shares (Denominator) Used in Basic and Diluted Earnings Per Share (Detail) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Weighted Average Number of Shares Issued, Basic	113,914,902	105,563,455
Average treasury shares (in shares)	(16,369,144)	(16,527,204)
Weighted Average Number of Shares, Deferred Compensation Plans	(37,411)	0
Average unearned nonvested shares	(75,210)	(106,359)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share (in shares)	97,433,137	88,929,892
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share	130,614	57,779
Weighted Average Number Of Additional Shares Deferred Compensation Plan	37,411	0
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share (in shares)	97,601,162	88,987,671

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Earnings per Share - Common Stock Equivalents Not Included in Computation of Diluted Earnings Per Share (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	37,298	13,750
Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	43,067	24,375
Minimum [Member] | Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount	$ 9.84	$ 13.96
Minimum [Member] | Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount	13.25	15.09
Maximum [Member] | Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount	14.49	13.96
Maximum [Member] | Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount	$ 15.83	$ 15.09

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Commitments and Contingent Liabilities - Notional Amount of Outstanding Commitments (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Commitments to extend credit [Member]
Loss Contingencies [Line Items]
Financial instrument of credit risk	$ 1,782,701	$ 1,840,180
Financial standby letters of credit [Member]
Loss Contingencies [Line Items]
Financial instrument of credit risk	17,636	17,946
Performance standby letters of credit [Member]
Loss Contingencies [Line Items]
Financial instrument of credit risk	21,328	20,472
Commercial letters of credit [Member]
Loss Contingencies [Line Items]
Financial instrument of credit risk	$ 1,055	$ 1,149

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Commitments and Contingent Liabilities - Additional Information (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Loss Contingencies [Line Items]
Notional Amount Of Performance Standby Letters Of Credit	$ 400,000
Notional Amount Of Commercial Letters Of Credit	0
Notional Amount Of Financial Standby Letters Of Credit	0
Financial instrument of credit risk	200,000	$ 200,000
Unfunded commitment liability	5,200,000
Minimum [Member]
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	0
Maximum [Member]
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 1,000,000

XML

Investment Securities - Analysis of Amortized Cost and Estimated Fair Values of Securities Available for Sale (Detail) - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
Investment Securities [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis		$ 5,099
Amortized Cost		829,188	$ 740,846
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		4,474	4,854
Gross Unrealized Losses		(20,785)	(14,342)
Securities available for sale, at fair value		812,877	731,358
Due within one year, Estimated Fair Value		5,073
Due after one but within five years, Amortized Cost		15,727
Due after one but within five years, Estimated Fair Value		15,541
Due after five but within ten years, Amortized Cost		26,337
Due after five but within ten years, Estimated Fair Value		26,409
Due after ten years, Amortized Cost		15,523
Due after ten years, Estimated Fair Value		16,594
Due within one year, Amortized Cost		62,686
Available-for-sale Securities, Debt Maturities, Single Maturity Date		63,617
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	[1]	764,832
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	[1]	747,590
US Government Agencies Residential Mortgage-backed Securities [Member]
Investment Securities [Line Items]
Amortized Cost		83,500
Securities available for sale, at fair value		82,800
Residential Mortgage Backed Securities [Member]
Investment Securities [Line Items]
Securities available for sale, at fair value		664,788	625,555
Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Investment Securities [Line Items]
Securities available for sale, at fair value		1,098	1,097
Obligations of States and Political Subdivisions [Member]
Investment Securities [Line Items]
Securities available for sale, at fair value		27,161	27,410
Corporate Debt Securities [Member]
Investment Securities [Line Items]
Securities available for sale, at fair value		21,226	16,493
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Investment Securities [Line Items]
Securities available for sale, at fair value		14,132	23,646
Debt Securities [Member]
Investment Securities [Line Items]
Amortized Cost		827,518
Securities available for sale, at fair value		811,207
US Government Agency Debt Securities Commercial [Domain]
Investment Securities [Line Items]
Amortized Cost		73,389	24,611
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		0	0
Gross Unrealized Losses		(1,252)	(462)
Securities available for sale, at fair value		72,137	24,149
Equity Securities [Member]
Investment Securities [Line Items]
Amortized Cost		1,670	1,670
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		0	0
Gross Unrealized Losses		0	0
Securities available for sale, at fair value		1,670	1,670
Debt Securities [Member]
Investment Securities [Line Items]
Amortized Cost		827,518	739,176
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		4,474	4,854
Gross Unrealized Losses		(20,785)	(14,342)
Securities available for sale, at fair value		811,207	729,688
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Investment Securities [Line Items]
Amortized Cost		13,602	27,499
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		1,252	526
Gross Unrealized Losses		(722)	(4,379)
Securities available for sale, at fair value		14,132	23,646
Corporate Debt Securities [Member]
Investment Securities [Line Items]
Amortized Cost		20,898	15,907
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		542	590
Gross Unrealized Losses		(214)	(4)
Securities available for sale, at fair value		21,226	16,493
Obligations of States and Political Subdivisions [Member]
Investment Securities [Line Items]
Amortized Cost		27,086	27,083
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		121	327
Gross Unrealized Losses		(46)	0
Securities available for sale, at fair value		27,161	27,410
Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Investment Securities [Line Items]
Amortized Cost		1,100	1,098
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		0	0
Gross Unrealized Losses		(2)	(1)
Securities available for sale, at fair value		1,098	1,097
Residential Mortgage Backed Securities [Member]
Investment Securities [Line Items]
Amortized Cost		681,343	632,422
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		1,913	2,622
Gross Unrealized Losses		(18,468)	(9,489)
Securities available for sale, at fair value		664,788	625,555
US Government Agencies Residential Mortgage-backed Securities [Member]
Investment Securities [Line Items]
Amortized Cost		10,100	10,556
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		646	789
Gross Unrealized Losses		(81)	(7)
Securities available for sale, at fair value		$ 10,665	$ 11,338

[1] Mortgage-Backed Securities include an amortized cost of $83.5 million and a fair value of $82.8 million for Obligations of U.S.

XML

Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities Available for Sale (Detail) - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
Net Investment Income [Line Items]
Available-for-sale Securities, Debt Maturities, Single Maturity Date		$ 63,617
Due after five but within ten years, Amortized Cost		26,337
Due after one but within five years, Amortized Cost		15,727
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	[1]	764,832
Due within one year, Amortized Cost		62,686
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis		5,099
Due after ten years, Amortized Cost		15,523
Corporate/Mortgage-Backed Securities, Amortized cost	[1]	747,590
Amortized Cost		829,188	$ 740,846
Due within one year, Estimated Fair Value		5,073
Due after one but within five years, Estimated Fair Value		15,541
Due after five but within ten years, Estimated Fair Value		26,409
Due after ten years, Estimated Fair Value		16,594
Total Debt Securities, Estimated Fair Value		812,877	731,358
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		4,474	4,854
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax		20,785	14,342
Debt Securities [Member]
Net Investment Income [Line Items]
Amortized Cost		827,518	739,176
Total Debt Securities, Estimated Fair Value		811,207	729,688
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		4,474	4,854
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax		20,785	14,342
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Net Investment Income [Line Items]
Amortized Cost		681,300
Total Debt Securities, Estimated Fair Value		664,800
Debt Securities [Member]
Net Investment Income [Line Items]
Amortized Cost		827,518
Total Debt Securities, Estimated Fair Value		811,207
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Net Investment Income [Line Items]
Total Debt Securities, Estimated Fair Value		14,132	23,646
Corporate Debt Securities [Member]
Net Investment Income [Line Items]
Total Debt Securities, Estimated Fair Value		21,226	16,493
Obligations of States and Political Subdivisions [Member]
Net Investment Income [Line Items]
Total Debt Securities, Estimated Fair Value		27,161	27,410
Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Net Investment Income [Line Items]
Total Debt Securities, Estimated Fair Value		1,098	1,097
Residential Mortgage Backed Securities [Member]
Net Investment Income [Line Items]
Total Debt Securities, Estimated Fair Value		664,788	$ 625,555
US Government Agencies Debt Securities [Member]
Net Investment Income [Line Items]
Amortized Cost		83,500
Total Debt Securities, Estimated Fair Value		$ 82,800

[1] Mortgage-Backed Securities include an amortized cost of $83.5 million and a fair value of $82.8 million for Obligations of U.S.

XML

Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities Available for Sale (Detail) (1) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investment Securities [Line Items]
Amortized Cost	$ 829,188	$ 740,846
Securities available for sale, at fair value	812,877	731,358
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	4,474	4,854
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	20,785	14,342
Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Investment Securities [Line Items]
Amortized Cost	1,100	1,098
Securities available for sale, at fair value	1,098	1,097
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	2	$ 1
US Government Agencies Residential Mortgage-backed Securities [Member]
Investment Securities [Line Items]
Amortized Cost	83,500
Securities available for sale, at fair value	82,800
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Investment Securities [Line Items]
Amortized Cost	681,300
Securities available for sale, at fair value	664,800
Debt Securities [Member]
Investment Securities [Line Items]
Amortized Cost	827,518
Securities available for sale, at fair value	$ 811,207

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	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Proceeds from Sale of Available-for-sale Securities	$ 0	$ 0
Sales Transactions:
Gross gains	0	0
Gross losses	0	0
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments	0	0
Maturities and impairment
Gross Gains	2,840	652
Gross Losses	0	0
Gain Losses Maturities And Impairment	2,840	652
Net gains and impairment	$ 2,840	$ 652

XML

Investment Securities - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Gross Losses	$ 0	$ 0
Gross Gains	2,840	652
Held-to-maturity Securities Pledged as Collateral	369,400		$ 338,300
Proceeds from Sale of Available-for-sale Securities	0	$ 0
Available-for-sale securities pledged as collateral	$ 609,900		$ 569,000

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Investment Securities Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Due within 1 year	$ 87
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Fair Value	86
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	38	$ 345
Held-to-maturity Securities	410,430	422,096
Securities held to maturity, fair value	399,528	$ 418,249
Due after 1 but within 5 years	3,646
Due after 5 but within 10 years	35,350
Held-to-maturity Securities, Debt Maturities, Year Six Through Ten, Fair Value	34,764
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Fair Value	3,626
Due after 10 years	1,626
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value	1,608
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis	40,709
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value	40,084
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount	369,721
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value	359,444
US Government Agencies Residential Mortgage-backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities	61,700
Securities held to maturity, fair value	59,300
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities	308,100
Securities held to maturity, fair value	$ 300,100

XML

Investment Securities Held to Maturity Securities by Type (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities	$ 410,430	$ 422,096
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	38	345
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	(10,940)	(4,192)
Securities held to maturity, fair value	399,528	418,249
US Government Agencies Residential Mortgage-backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities	3,895	3,925
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	0	0
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	(109)	(14)
Securities held to maturity, fair value	3,786	3,911
US Government Agency Debt Securities Commercial [Domain]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities	57,762	58,249
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	0	0
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	(2,224)	(1,394)
Securities held to maturity, fair value	55,538	56,855
Residential Mortgage Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities	294,205	305,126
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	0	10
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	(7,645)	(2,552)
Securities held to maturity, fair value	286,560	302,584
Obligations of U.S. Government-Sponsored Enterprises - Mortgage-Backed Securities - Commercial [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities	13,859	14,056
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	0	0
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	(299)	(71)
Securities held to maturity, fair value	13,560	13,985
Obligations of States and Political Subdivisions [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities	40,509	40,540
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	38	335
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	(660)	(161)
Securities held to maturity, fair value	39,887	40,714
Foreign Government Debt Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities	200	200
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	0	0
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss	(3)	0
Securities held to maturity, fair value	$ 197	$ 200

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Other Investments - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other Investments Disclosure [Abstract]
Other investments	$ 24,400	$ 29,837

XML

Impairment of Investment Securities - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018 USD ($) Bank Security	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other than temporary impairment charges recognized	$ 0	$ 0
Amortized Cost	829,188,000		$ 740,846,000
Securities available for sale, at fair value	812,877,000		731,358,000
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 31,725,000		18,534,000
Number of banks and other financial institutions comprising the security | Bank	164
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	4
Coupon rate	7.00%
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%
Federal Home Loan Bank Stock	$ 24,400,000		29,837,000
Investment Securities in Unrealized Loss Position, Qualitative Disclosure, Number of Positions, Total	155
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%
Probabilities for performing collateral range	0.33%
Excess present value of future cash flows over our current book value	19.00%
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	114.00%
Probabilities for performing collateral range	50.00%
Excess present value of future cash flows over our current book value	101.00%
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Percent of Unrealized Losses	2.00%
Securities available for sale, at fair value	$ 14,132,000		23,646,000
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	722,000		4,379,000
Trust preferred collateralized debt obligations [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other than temporary impairment charges recognized	$ 0	0
Percentage of Current Performing Collateral	0.00%
Corporate Debt Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Securities available for sale, at fair value	$ 21,226,000		16,493,000
Pooled Trust Preferred Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other than temporary impairment charges recognized	0	0
Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other than temporary impairment charges recognized	0	$ 0
Continuous Unrealized Loss Position, Fair Value	0		0
Asset Size and Coupon Rate 1 [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Collateral issued by financial institutions	$ 15,000,000,000
Coupon rate	7.00%
Prepayment rate	100.00%
Asset Size and Coupon Rate 2 [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Coupon rate	7.00%
Fair Value Inputs , Prepayment Rate Year One and Two	40.00%
Fair Value Inputs , Prepayment Rate After Year Two	2.00%
Asset Size and Coupon Rate 3 [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Prepayment rate	5.00%
Asset Size and Coupon Rate 3 [Member] | Minimum [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Collateral issued by financial institutions	$ 2,000,000,000
Asset Size and Coupon Rate 3 [Member] | Maximum [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Collateral issued by financial institutions	15,000,000,000
Asset Size and Coupon Rate 4 [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Collateral issued by financial institutions	$ 2,000,000,000
Coupon rate	10.00%
Prepayment rate	5.00%
Asset Size and Coupon Rate 5 [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Prepayment rate	0.00%
Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Percent of Unrealized Losses	83.00%
Reported Value Measurement [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Securities available for sale, at fair value	$ 812,877,000		$ 731,358,000
Federal Home Loan Bank Stock	$ 24,400,000

XML

Impairment of Investment Securities - Schedule of Unrealized Losses and Estimated Fair Values (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Trading Securities and Other Trading Assets [Line Items]
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 668,962	$ 431,247
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(13,517)	(3,386)
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	420,472	456,539
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(18,208)	(15,148)
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	1,089,434	887,786
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	(31,725)	(18,534)
US Government Agencies Residential Mortgage-backed Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	7,923	5,584
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(190)	(21)
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	7,923	5,584
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	(190)	(21)
US Government Agency Debt Securities Commercial [Domain]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	95,862	48,322
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(2,120)	(962)
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	31,813	32,683
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(1,356)	(894)
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	127,675	81,005
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	(3,476)	(1,856)
Residential Mortgage Backed Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	500,625	351,222
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(10,277)	(2,295)
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	378,709	400,984
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(15,836)	(9,746)
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	879,334	752,206
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	(26,113)	(12,041)
Obligations of U.S. Government-Sponsored Enterprises - Mortgage-Backed Securities - Commercial [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	13,560	13,985
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(299)	(71)
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	13,560	13,985
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	(299)	(71)
Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	999	997
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(1)	(1)
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	99	99
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(1)	0
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	1,098	1,096
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	(2)	(1)
Obligations of States and Political Subdivisions [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	31,032	7,144
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(413)	(32)
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	3,489	3,653
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(293)	(129)
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	34,521	10,797
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	(706)	(161)
Foreign Government Debt Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	197
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(3)
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	197
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	(3)
Corporate Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	18,764	3,993
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(214)	(4)
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	18,764	3,993
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ (214)	(4)
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Percent of Unrealized Losses	2.00%
Investment Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 0	0
Investment Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Investment Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	6,362	19,120
Investment Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(722)	(4,379)
Investment Securities, Continuous Unrealized Loss Position, Fair Value, Total	6,362	19,120
Investment Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ (722)	$ (4,379)

XML

Impairment of Investment Securities - Pooled Trust Preferred Collateralized Debt Obligations (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) Bank	Dec. 31, 2017 USD ($)
Impairment Of Investment Securities [Line Items]
Securities available for sale, at fair value	$ 812,877	$ 731,358
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	4,474	4,854
Unrealized Gain (Loss)	20,785	$ 14,342
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Impairment Of Investment Securities [Line Items]
Book Value	13,602
Securities available for sale, at fair value	14,132
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	530
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Mezzanine [Member] | Pre TSL IV [Member]
Impairment Of Investment Securities [Line Items]
Book Value	933
Securities available for sale, at fair value	738
Unrealized Gain (Loss)	$ 195
Debt Instrument, Credit Rating	Ba1/BB
Number of Banks (in banks) | Bank	5
Deferrals and Defaults as a % of Current Collateral	0.00%
Excess Subordination as a % of Current Performing Collateral	113.79%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Mezzanine [Member] | Pre TSL VIII [Member]
Impairment Of Investment Securities [Line Items]
Book Value	$ 2,072
Securities available for sale, at fair value	2,295
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	$ 223
Debt Instrument, Credit Rating	C/C
Number of Banks (in banks) | Bank	26
Deferrals and Defaults as a % of Current Collateral	38.52%
Excess Subordination as a % of Current Performing Collateral	0.00%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Mezzanine [Member] | Pre TSL IX [Member]
Impairment Of Investment Securities [Line Items]
Book Value	$ 2,457
Securities available for sale, at fair value	3,000
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	$ 543
Debt Instrument, Credit Rating	B1/C
Number of Banks (in banks) | Bank	37
Deferrals and Defaults as a % of Current Collateral	27.83%
Excess Subordination as a % of Current Performing Collateral	19.46%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Mezzanine [Member] | Pre TSL X [Member]
Impairment Of Investment Securities [Line Items]
Book Value	$ 1,894
Securities available for sale, at fair value	2,301
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	$ 407
Debt Instrument, Credit Rating	Caa1/C
Number of Banks (in banks) | Bank	41
Deferrals and Defaults as a % of Current Collateral	26.29%
Excess Subordination as a % of Current Performing Collateral	1.73%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Mezzanine [Member] | Pre TSL XII [Member]
Impairment Of Investment Securities [Line Items]
Book Value	$ 6,151
Securities available for sale, at fair value	5,624
Unrealized Gain (Loss)	$ 527
Debt Instrument, Credit Rating	B3/C
Number of Banks (in banks) | Bank	64
Deferrals and Defaults as a % of Current Collateral	23.39%
Excess Subordination as a % of Current Performing Collateral	0.00%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Mezzanine [Member] | MMCap I [Member]
Impairment Of Investment Securities [Line Items]
Book Value	$ 95
Securities available for sale, at fair value	174
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	$ 79
Debt Instrument, Credit Rating	Ca/C
Number of Banks (in 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		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Impairment of Investment Securities Disclosure [Abstract]
Balance, beginning (a)	[1]	$ 12,208	$ 17,056
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized		0	0
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized		0	0
Balance, ending		9,759	16,828
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows		(2,302)	0
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Period Increase (Decrease)		$ 147	$ 228

[1] The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

XML

Loans and Allowance for Credit Losses - Outstanding Balances of Loan (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 5,381,305	$ 5,407,376	$ 4,907,961
Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		1,163,383
Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		248,868
Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		1,426,370
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		2,019,096
Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		549,659
Originated Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	4,997,115	5,007,361
Originated Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,093,192	1,122,741
Originated Loans [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	245,841	242,905
Originated Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,220,989	1,206,119
Originated Loans [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,901,609	1,892,185
Originated Loans [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	535,484	543,411
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	384,190	400,015
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	38,402	40,642
Acquired Loans [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,120	5,963
Acquired Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	213,634	220,251
Acquired Loans [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	125,463	126,911
Acquired Loans [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 5,571	$ 6,248

XML

Loans and Allowance for Credit Losses - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non Accrual Status Of Loans After Number Of Days Past Due	90 days
Default Status Of TDRs After Number Of Days Past Due	90 days
Unfunded commitments related to nonperforming loans	$ 4,200,000		$ 2,400,000
Off balance sheet reserve to nonperforming loans	400,000		200,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	$ 0
Total gains or losses included in earnings	$ 2,840,000	0
Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non Accrual Status Of Loans After Number Of Days Past Due	150 days
Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans with modifications to rate and payment due to reamortization	$ 100,000	200,000
Nonaccrual Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Held for sale, Amount	0		$ 0
Loans and Leases Receivable, Gain (Loss) on Sales, Net	$ 0	$ 0

XML

Loans and Allowance for Credit Losses - Credit Risk Profile by Creditworthiness (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Originated Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 4,997,115	$ 5,007,361
Originated Loans [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	4,881,982	4,896,832
Originated Loans [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	40,802	41,518
Originated Loans [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	67,362	64,605
Originated Loans [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	6,969	4,406
Originated Loans [Member] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	115,133	110,529
Originated Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,093,192	1,122,741
Originated Loans [Member] | Commercial, financial, agricultural and other [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,020,603	1,061,147
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	31,480	26,757
Originated Loans [Member] | Commercial, financial, agricultural and other [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	34,140	30,431
Originated Loans [Member] | Commercial, financial, agricultural and other [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	6,969	4,406
Originated Loans [Member] | Commercial, financial, agricultural and other [Member] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	72,589	61,594
Originated Loans [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	245,841	242,905
Originated Loans [Member] | Real estate construction [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	245,841	242,905
Originated Loans [Member] | Real estate construction [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
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] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Originated Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,220,989	1,206,119
Originated Loans [Member] | Residential real estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,209,290	1,194,352
Originated Loans [Member] | Residential real estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,574	1,435
Originated Loans [Member] | Residential real estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	10,125	10,332
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] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	11,699	11,767
Originated Loans [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,901,609	1,892,185
Originated Loans [Member] | Commercial Real Estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,871,008	1,855,253
Originated Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	7,748	13,326
Originated Loans [Member] | Commercial Real Estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	22,853	23,606
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] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	30,601	36,932
Originated Loans [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	535,484	543,411
Originated Loans [Member] | Loans to individuals [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	535,240	543,175
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	244	236
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] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	244	236
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	384,190	400,015
Acquired Loans [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	372,885	386,127
Acquired Loans [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	7,482	9,882
Acquired Loans [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	3,823	4,006
Acquired Loans [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	0	0
Acquired Loans [Member] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	11,305	13,888
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	38,402	40,642
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	32,439	34,573
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	5,486	5,567
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	477	502
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] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	5,963	6,069
Acquired Loans [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,120	5,963
Acquired Loans [Member] | Real estate construction [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,120	5,963
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] | Criticized [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	213,634	220,251
Acquired Loans [Member] | Residential real estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	211,361	217,824
Acquired Loans [Member] | Residential real estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	745	798
Acquired Loans [Member] | Residential real estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,528	1,629
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] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	2,273	2,427
Acquired Loans [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	125,463	126,911
Acquired Loans [Member] | Commercial Real Estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	122,411	121,536
Acquired Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,251	3,517
Acquired Loans [Member] | Commercial Real Estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,801	1,858
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] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	3,052	5,375
Acquired Loans [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	5,571	6,248
Acquired Loans [Member] | Loans to individuals [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	5,554	6,231
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	17
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] | Criticized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 17	$ 17

XML

Loans and Allowance for Credit Losses - Age Analysis of Past Due Loans by Segment (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 5,381,305	$ 5,407,376	$ 4,907,961
Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,131,594		1,148,460
Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	246,961		240,122
Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,434,623		1,217,398
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,027,072		1,761,101
Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	541,055		$ 540,880
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	2,529	2,570
Financing Receivable, Recorded Investment, Current	381,661	397,445
Total	384,190	400,015
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	448	449
Financing Receivable, Recorded Investment, Current	37,954	40,193
Total	38,402	40,642
Acquired Loans [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	0	0
Financing Receivable, Recorded Investment, Current	1,120	5,963
Total	1,120	5,963
Acquired Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	968	945
Financing Receivable, Recorded Investment, Current	212,666	219,306
Total	213,634	220,251
Acquired Loans [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	1,000	1,077
Financing Receivable, Recorded Investment, Current	124,463	125,834
Total	125,463	126,911
Acquired Loans [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	113	99
Financing Receivable, Recorded Investment, Current	5,458	6,149
Total	5,571	6,248
Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	196	190
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]
Total past due and nonaccrual	11	6
Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	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]
Total past due and nonaccrual	119	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]
Total past due and nonaccrual	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]
Total past due and nonaccrual	66	36
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	121	36
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]
Total past due and nonaccrual	0	7
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	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]
Total past due and nonaccrual	110	9
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	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]
Total past due and nonaccrual	11	20
Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	66	109
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]
Total past due and nonaccrual	26	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]
Total past due and nonaccrual	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]
Total past due and nonaccrual	21	83
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]
Total past due and nonaccrual	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]
Total past due and nonaccrual	19	26
Acquired Loans [Member] | Non Accrual Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	2,146	2,235
Acquired Loans [Member] | Non Accrual Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	411	436
Acquired Loans [Member] | Non Accrual Loans [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	0	0
Acquired Loans [Member] | Non Accrual Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	718	705
Acquired Loans [Member] | Non Accrual Loans [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	1,000	1,077
Acquired Loans [Member] | Non Accrual Loans [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	17	17
Originated Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	48,690	41,362
Financing Receivable, Recorded Investment, Current	4,948,425	4,965,999
Total	4,997,115	5,007,361
Originated Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	26,652	19,220
Financing Receivable, Recorded Investment, Current	1,066,540	1,103,521
Total	1,093,192	1,122,741
Originated Loans [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	0	199
Financing Receivable, Recorded Investment, Current	245,841	242,706
Total	245,841	242,905
Originated Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	10,681	12,944
Financing Receivable, Recorded Investment, Current	1,210,308	1,193,175
Total	1,220,989	1,206,119
Originated Loans [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	8,513	5,472
Financing Receivable, Recorded Investment, Current	1,893,096	1,886,713
Total	1,901,609	1,892,185
Originated Loans [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Recorded Investment Equal To Or Greater Than Thirty Days Past Due	2,844	3,527
Financing Receivable, Recorded Investment, Current	532,640	539,884
Total	535,484	543,411
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	8,132	9,292
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]
Total past due and nonaccrual	2,163	378
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	0	199
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	2,849	4,618
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	1,751	2,198
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	1,369	1,899
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	2,265	1,883
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]
Total past due and nonaccrual	23	61
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	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]
Total past due and nonaccrual	996	1,025
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	783	28
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	463	769
Originated Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	1,889	1,745
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]
Total past due and nonaccrual	168	40
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]
Total past due and nonaccrual	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]
Total past due and nonaccrual	649	1,076
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]
Total past due and nonaccrual	304	6
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]
Total past due and nonaccrual	768	623
Originated Loans [Member] | Non Accrual Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	36,404	28,442
Originated Loans [Member] | Non Accrual Loans [Member] | Commercial, financial, agricultural and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	24,298	18,741
Originated Loans [Member] | Non Accrual Loans [Member] | Real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	0	0
Originated Loans [Member] | Non Accrual Loans [Member] | Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	6,187	6,225
Originated Loans [Member] | Non Accrual Loans [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	5,675	3,240
Originated Loans [Member] | Non Accrual Loans [Member] | Loans to individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due and nonaccrual	$ 244	$ 236

XML

Loans and Allowance for Credit Losses - Recorded Investment and Unpaid Principal Balance for Impaired Loans with Associated Allowance (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Acquired Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	$ 2,224	$ 468
Impaired Financing Receivable, Interest Income, Accrual Method	1	0
Related allowance	12		$ 33
Recorded investment	2,198		2,289
Unpaid principal balance	3,501		3,545
Acquired Loans [Member] | Commercial Loan [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	0	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Related allowance	0		0
Recorded investment	0		0
Unpaid principal balance	0		0
Acquired Loans [Member] | Commercial Financial Agricultural And Other With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	411	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Recorded investment	411		436
Unpaid principal balance	424		449
Acquired Loans [Member] | Real Estate Construction With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	0	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Recorded investment	0		0
Unpaid principal balance	0		0
Acquired Loans [Member] | Residential Real Estate With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	678	241
Impaired Financing Receivable, Interest Income, Accrual Method	1	0
Recorded investment	677		666
Unpaid principal balance	1,003		965
Acquired Loans [Member] | Commercial Real Estate With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	907	162
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Recorded investment	891		940
Unpaid principal balance	1,811		1,842
Acquired Loans [Member] | Loans To Individuals With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	17	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Recorded investment	17		17
Unpaid principal balance	17		17
Acquired Loans [Member] | With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	2,013	403
Impaired Financing Receivable, Interest Income, Accrual Method	1	0
Recorded investment	1,996		2,059
Unpaid principal balance	3,255		3,273
Acquired Loans [Member] | Real Estate Construction With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	0	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Related allowance	0		0
Recorded investment	0		0
Unpaid principal balance	0		0
Acquired Loans [Member] | Residential Real Estate With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	93	65
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Related allowance	10		4
Recorded investment	93		93
Unpaid principal balance	122		122
Acquired Loans [Member] | Commercial Real Estate With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	118	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Related allowance	2		29
Recorded investment	109		137
Unpaid principal balance	124		150
Acquired Loans [Member] | Loans To Individuals With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	0	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Related allowance	0		0
Recorded investment	0		0
Unpaid principal balance	0		0
Acquired Loans [Member] | With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	211	65
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Related allowance	12		33
Recorded investment	202		230
Unpaid principal balance	246		272
Originated Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	44,781	43,975
Impaired Financing Receivable, Interest Income, Accrual Method	173	202
Related allowance	11,461		3,713
Recorded investment	55,059		39,951
Unpaid principal balance	62,380		53,021
Originated Loans [Member] | Commercial Loan [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	17,720	12,787
Impaired Financing Receivable, Interest Income, Accrual Method	66	26
Related allowance	9,045		3,478
Recorded investment	28,615		16,866
Unpaid principal balance	28,795		21,094
Originated Loans [Member] | Commercial Financial Agricultural And Other With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	8,130	12,034
Impaired Financing Receivable, Interest Income, Accrual Method	10	38
Recorded investment	4,791		5,548
Unpaid principal balance	9,559		12,153
Originated Loans [Member] | Real Estate Construction With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	0	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Recorded investment	0		0
Unpaid principal balance	0		0
Originated Loans [Member] | Residential Real Estate With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	10,401	11,422
Impaired Financing Receivable, Interest Income, Accrual Method	63	74
Recorded investment	10,129		10,625
Unpaid principal balance	12,000		12,470
Originated Loans [Member] | Commercial Real Estate With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	5,510	5,949
Impaired Financing Receivable, Interest Income, Accrual Method	31	54
Recorded investment	4,624		5,155
Unpaid principal balance	5,038		5,489
Originated Loans [Member] | Loans To Individuals With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	354	338
Impaired Financing Receivable, Interest Income, Accrual Method	2	2
Recorded investment	339		347
Unpaid principal balance	379		383
Originated Loans [Member] | With No Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	24,395	29,743
Impaired Financing Receivable, Interest Income, Accrual Method	106	168
Recorded investment	19,883		21,675
Unpaid principal balance	26,976		30,495
Originated Loans [Member] | Real Estate Construction With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	0	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Related allowance	0		0
Recorded investment	0		0
Unpaid principal balance	0		0
Originated Loans [Member] | Residential Real Estate With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	706	334
Impaired Financing Receivable, Interest Income, Accrual Method	0	1
Related allowance	277		107
Recorded investment	808		456
Unpaid principal balance	846		478
Originated Loans [Member] | Commercial Real Estate With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	1,960	1,111
Impaired Financing Receivable, Interest Income, Accrual Method	1	7
Related allowance	2,139		128
Recorded investment	5,753		954
Unpaid principal balance	5,763		954
Originated Loans [Member] | Loans To Individuals With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	0	0
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Related allowance	0		0
Recorded investment	0		0
Unpaid principal balance	0		0
Originated Loans [Member] | With Related Allowance [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	20,386	14,232
Impaired Financing Receivable, Interest Income, Accrual Method	67	$ 34
Related allowance	11,461		3,713
Recorded investment	35,176		18,276
Unpaid principal balance	$ 35,404		$ 22,526

XML

Loans and Allowance for Credit Losses - Troubled Debt Restructured Loans and Commitments (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Troubled Debt Restructurings [Line Items]
Financing Receivable, Modifications, Recorded Investment	$ 28,940	$ 22,785
Loans and Leases Receivable, Impaired, Commitment to Lend	1,838	114
Letter of Credit [Member]
Financing Receivable, Troubled Debt Restructurings [Line Items]
Loans and Leases Receivable, Impaired, Commitment to Lend	60	60
Unused lines of Credit [Member]
Financing Receivable, Troubled Debt Restructurings [Line Items]
Loans and Leases Receivable, Impaired, Commitment to Lend	1,778	54
Accrual Loans [Member] [Member]
Financing Receivable, Troubled Debt Restructurings [Line Items]
Financing Receivable, Modifications, Recorded Investment	18,707	11,563
Non Accrual Loans [Member]
Financing Receivable, Troubled Debt Restructurings [Line Items]
Financing Receivable, Modifications, Recorded Investment	$ 10,233	$ 11,222

XML

Loans and Allowance for Credit Losses - Troubled Debt Restructurings Identified During Period (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) Contract	Mar. 31, 2017 USD ($) Contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	18	13
Total Pre-Modification Outstanding Recorded Investment	$ 8,387	$ 817
Post- Modification Outstanding Recorded Investment	$ 7,393	$ 778
Financing Receivable, Modifications, Determination of Allowance for Credit Losses	775000	0
Commercial, financial, agricultural and other [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	2	1
Total Pre-Modification Outstanding Recorded Investment	$ 4,871	$ 42
Post- Modification Outstanding Recorded Investment	$ 3,942	$ 38
Financing Receivable, Modifications, Determination of Allowance for Credit Losses	531	0
Residential real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	11	7
Total Pre-Modification Outstanding Recorded Investment	$ 441	$ 536
Post- Modification Outstanding Recorded Investment	$ 404	$ 504
Financing Receivable, Modifications, Determination of Allowance for Credit Losses	17	0
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	1	2
Total Pre-Modification Outstanding Recorded Investment	$ 3,017	$ 195
Post- Modification Outstanding Recorded Investment	$ 2,994	$ 193
Financing Receivable, Modifications, Determination of Allowance for Credit Losses	227	0
Loans to individuals [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	4	3
Total Pre-Modification Outstanding Recorded Investment	$ 58	$ 44
Post- Modification Outstanding Recorded Investment	$ 53	$ 43
Financing Receivable, Modifications, Determination of Allowance for Credit Losses	0	0
Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	$ 7,746	$ 308
Extended Maturity [Member] | Commercial, financial, agricultural and other [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	4,709	0
Extended Maturity [Member] | Residential real estate [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	20	129
Extended Maturity [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	3,017	179
Extended Maturity [Member] | Loans to individuals [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	0	0
Contractual Interest Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	103	157
Contractual Interest Rate Reduction [Member] | Commercial, financial, agricultural and other [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	0	42
Contractual Interest Rate Reduction [Member] | Residential real estate [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	75	101
Contractual Interest Rate Reduction [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	0	0
Contractual Interest Rate Reduction [Member] | Loans to individuals [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	28	14
Contractual Payment Modification [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	538	352
Contractual Payment Modification [Member] | Commercial, financial, agricultural and other [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	162	0
Contractual Payment Modification [Member] | Residential real estate [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	346	306
Contractual Payment Modification [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	0	16
Contractual Payment Modification [Member] | Loans to individuals [Member]
Financing Receivable, Modifications [Line Items]
Total Pre-Modification Outstanding Recorded Investment	$ 30	$ 30

XML

Loans and Allowance for Credit Losses - Troubled Debt Restructuring is 90 Days or More Past Due (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) Contract	Mar. 31, 2017 USD ($) Contract
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Contract	1	0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 940	$ 0
Commercial, financial, agricultural and other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Contract	1	0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 940	$ 0

XML

Loans and Allowance for Credit Losses - Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Allowance for Doubtful Accounts Receivable [Roll Forward]
Provision for credit losses	$ 6,903	$ 3,229
Ending Balance			$ 53,732		$ 48,676
Ending balance: individually evaluated for impaired			11,473		3,017
Ending balance: collectively evaluated for impaired			42,259		45,659
Total			5,381,305	$ 5,407,376	4,907,961
Ending balance: individually evaluated for impaired			50,491		38,366
Ending balance: collectively evaluated for impaired			5,330,814		4,869,595
Residential real estate [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Ending Balance			3,154		2,445
Total			1,434,623		1,217,398
Commercial Real Estate [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Ending Balance			18,496		6,582
Ending balance: individually evaluated for impaired			2,141		376
Ending balance: collectively evaluated for impaired			16,355		6,206
Total			2,027,072		1,761,101
Ending balance: individually evaluated for impaired			10,360		5,819
Ending balance: collectively evaluated for impaired			2,016,712		1,755,282
Commercial, financial, agricultural and other [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Ending Balance			27,552		34,701
Ending balance: individually evaluated for impaired			9,045		2,466
Ending balance: collectively evaluated for impaired			18,507		32,235
Total			1,131,594		1,148,460
Ending balance: individually evaluated for impaired			33,278		26,260
Ending balance: collectively evaluated for impaired			1,098,316		1,122,200
Real estate construction [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Ending Balance			1,114		614
Ending balance: individually evaluated for impaired			0		0
Ending balance: collectively evaluated for impaired			1,114		614
Total			246,961		240,122
Ending balance: individually evaluated for impaired			0		0
Ending balance: collectively evaluated for impaired			246,961		240,122
Residential real estate [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Ending balance: individually evaluated for impaired			287		175
Ending balance: collectively evaluated for impaired			2,867		2,270
Ending balance: individually evaluated for impaired			6,853		6,287
Ending balance: collectively evaluated for impaired			1,427,770		1,211,111
Loans to individuals [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Ending Balance			3,416		4,334
Ending balance: individually evaluated for impaired			0		0
Ending balance: collectively evaluated for impaired			3,416		4,334
Total			541,055		540,880
Ending balance: individually evaluated for impaired			0		0
Ending balance: collectively evaluated for impaired			541,055		540,880
Acquired Loans [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	46	19
Charge-offs	(20)	(15)
Recoveries	37	7
Provision for credit losses	(28)	20
Ending Balance	46	19	35	46	31
Total			384,190	400,015
Acquired Loans [Member] | Residential real estate [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	6	19
Charge-offs	(16)	(8)
Recoveries	17	6
Provision for credit losses	6	14
Ending Balance	6	19	13	6	31
Total			213,634	220,251
Acquired Loans [Member] | Commercial Real Estate [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	29	0
Charge-offs	0	0
Recoveries	0	0
Provision for credit losses	(27)	0
Ending Balance	29	0	2	29	0
Total			125,463	126,911
Acquired Loans [Member] | Commercial, financial, agricultural and other [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	11	0
Charge-offs	0	0
Recoveries	7	0
Provision for credit losses	2	0
Ending Balance	11	0	20	11	0
Total			38,402	40,642
Acquired Loans [Member] | Real estate construction [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	0	0
Charge-offs	0	0
Recoveries	6	0
Provision for credit losses	(6)	0
Ending Balance	0	0	0	0	0
Total			1,120	5,963
Acquired Loans [Member] | Loans to individuals [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	0	0
Charge-offs	(4)	(7)
Recoveries	7	1
Provision for credit losses	(3)	6
Ending Balance	0	0	0	0	0
Total			5,571	6,248
Originated Loans [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	48,252	50,166
Charge-offs	(2,082)	(5,519)
Recoveries	596	789
Provision for credit losses	6,931	3,209
Ending Balance	48,252	50,166	53,697	48,252	48,645
Total			4,997,115	5,007,361
Originated Loans [Member] | Residential real estate [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	2,753	2,492
Charge-offs	(455)	(465)
Recoveries	75	122
Provision for credit losses	768	265
Ending Balance	2,753	2,492	3,141	2,753	2,414
Total			1,220,989	1,206,119
Originated Loans [Member] | Commercial Real Estate [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	17,328	6,619
Charge-offs	(168)	(31)
Recoveries	69	117
Provision for credit losses	1,265	(123)
Ending Balance	17,328	6,619	18,494	17,328	6,582
Total			1,901,609	1,892,185
Originated Loans [Member] | Commercial, financial, agricultural and other [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	23,418	35,974
Charge-offs	(290)	(3,825)
Recoveries	256	368
Provision for credit losses	4,148	2,184
Ending Balance	23,418	35,974	27,532	23,418	34,701
Total			1,093,192	1,122,741
Originated Loans [Member] | Real estate construction [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	1,349	577
Charge-offs	0	0
Recoveries	1	54
Provision for credit losses	(236)	(17)
Ending Balance	1,349	577	1,114	1,349	614
Total			245,841	242,905
Originated Loans [Member] | Loans to individuals [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	3,404	4,504
Charge-offs	(1,169)	(1,198)
Recoveries	195	128
Provision for credit losses	986	900
Ending Balance	$ 3,404	$ 4,504	3,416	3,404	$ 4,334
Total			$ 535,484	$ 543,411

XML

Income Taxes Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Unrecognized Tax Benefits			$ 0
Restricted Stock Expense, Tax Benefit	$ 100
Effect of ASU Adoption [Member]
Cumulative effect of adoption of ASU 2018-02			0	$ 0
Effect of ASU Adoption [Member] | Retained Earnings [Member]
Cumulative effect of adoption of ASU 2018-02		$ 1,344	$ 1,344

XML

Fair Values of Assets and Liabilities - Quantitative Inputs and Assumptions Used in Level 3 Fair Value Measurements (Detail) - USD ($)		3 Months Ended
		Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value		$ 812,877,000	$ 731,358,000
Assets		$ 853,683,000	779,966,000
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Minimum [Member] | Discount rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate	[1]	5.00%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Maximum [Member] | Discount rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate	[1]	11.50%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discounted Cash Flow [Member] | Minimum [Member] | Probability of default [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate		0.00%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discounted Cash Flow [Member] | Minimum [Member] | Prepayment rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate		0.00%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discounted Cash Flow [Member] | Maximum [Member] | Probability of default [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate		100.00%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discounted Cash Flow [Member] | Maximum [Member] | Prepayment rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate		71.89%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discounted Cash Flow [Member] | Weighted average [Member] | Probability of default [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate		7.42%
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discounted Cash Flow [Member] | Weighted average [Member] | Prepayment rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate		8.73%
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value		$ 1,670,000	1,670,000
Impaired Loans [Member] | Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		11,181,000
Impaired Loans [Member] | Discounted Cash Flow [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0
Impaired Loans [Member] | Discounted Cash Flow [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 0
Impaired Loans [Member] | Discounted Cash Flow [Member] | Weighted average [Member] | Discount rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate
Impaired Loans [Member] | Reserve Study [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 1,290,000
Impaired Loans [Member] | Reserve Study [Member] | NGL per gallon [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs Monetary	[2]
Impaired Loans [Member] | Reserve Study [Member] | Minimum [Member] | Gas per MCF [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs Monetary	[2]	2.81
Impaired Loans [Member] | Reserve Study [Member] | Minimum [Member] | Oil per BBL/d [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs Monetary	[2]	51.59
Impaired Loans [Member] | Reserve Study [Member] | Maximum [Member] | Gas per MCF [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs Monetary	[2]	3.35
Impaired Loans [Member] | Reserve Study [Member] | Maximum [Member] | Oil per BBL/d [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs Monetary	[2]	$ 59.55
Impaired Loans [Member] | Reserve Study [Member] | Weighted average [Member] | Discount rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average rate		10.00%
Limited Partnership Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 2,292,000
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value		15,802,000	25,316,000
Assets		18,094,000	27,459,000
Level 3 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value		1,670,000	1,670,000
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value		14,132,000	23,646,000
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value			23,646,000
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Level 3 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value		14,132,000
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Real Estate Owned Assets Fair Value		3,278,000	3,264,000
Assets		49,062,000	41,758,000
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Real Estate Owned Assets Fair Value		0	0
Assets		19,238,000	$ 15,245,000
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Real Estate Owned Assets Fair Value		$ 0

[1] ncorporates spread over risk free rate related primarily to credit quality and illiquidity of securities.

[2] 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.

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	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 27,459	$ 35,892
Total gains or losses included in earnings	2,840	0
Total gains or losses included in other comprehensive income	4,529	497
Purchases	149	410
Issuances	0	0
Sales	0	0
Settlements	(16,883)	(48)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Balance, end of period	18,094	36,751
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0	0
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	23,646	33,292
Total gains or losses included in earnings	2,840	0
Total gains or losses included in other comprehensive income	4,529	497
Purchases	0	0
Issuances	0	0
Sales	0	0
Settlements	(16,883)	(48)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Balance, end of period	14,132	33,741
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0	0
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	1,670	1,670
Total gains or losses included in earnings	0	0
Total gains or losses included in other comprehensive income	0	0
Purchases	0	0
Issuances	0	0
Sales	0	0
Settlements	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Balance, end of period	1,670	1,670
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0	0
Other Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	2,143	930
Total gains or losses included in earnings	0	0
Total gains or losses included in other comprehensive income	0	0
Purchases	149	410
Issuances	0	0
Sales	0	0
Settlements	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Balance, end of period	2,292	1,340
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	$ 0

XML

Fair Values of Assets and Liabilities - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2018		Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	$ 812,877		$ 731,358
Other investments	24,400		29,837
Loans Held for Sale	9,759		14,850
Other Assets	6,647	[1]	3,921	[2]
Total Assets	853,683		779,966
Other Liabilities	4,879	[1]	3,079	[2]
Total Liabilities	4,879		3,079
Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	811,207		729,688
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	1,670		1,670
US Government Agencies Residential Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	10,665		11,338
US Government Agency Debt Securities Commercial [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	72,137		24,149
Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	664,788		625,555
Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	1,098		1,097
Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	27,161		27,410
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	21,226		16,493
Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	14,132		23,646
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Other investments	0		0
Loans Held for Sale	0		0
Other Assets	0	[1]	0	[2]
Total Assets	0		0
Other Liabilities	0	[1]	0	[2]
Total Liabilities	0		0
Level 1 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 1 [Member] | US Government Agencies Residential Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 1 [Member] | US Government Agency Debt Securities Commercial [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 1 [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 1 [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 1 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	797,075		706,042
Other investments	24,400		29,837
Loans Held for Sale	9,759		14,850
Other Assets	4,355	[1]	1,778	[2]
Total Assets	835,589		752,507
Other Liabilities	4,879	[1]	3,079	[2]
Total Liabilities	4,879		3,079
Level 2 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	797,075		706,042
Level 2 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 2 [Member] | US Government Agencies Residential Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	10,665		11,338
Level 2 [Member] | US Government Agency Debt Securities Commercial [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	72,137		24,149
Level 2 [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	664,788		625,555
Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	1,098		1,097
Level 2 [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	27,161		27,410
Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	21,226		16,493
Level 2 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	15,802		25,316
Other investments	0		0
Loans Held for Sale	0		0
Other Assets	2,292	[1]	2,143	[2]
Total Assets	18,094		27,459
Other Liabilities	0	[1]	0	[2]
Total Liabilities	0		0
Level 3 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	14,132		23,646
Level 3 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	1,670		1,670
Level 3 [Member] | US Government Agencies Residential Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 3 [Member] | US Government Agency Debt Securities Commercial [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 3 [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises - Other Government-Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 3 [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0		0
Level 3 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	$ 0		0
Level 3 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value			$ 23,646

[1] Hedging and non-hedging interest rate derivatives and limited partnership investments

[2] on-hedging interest rate derivatives

XML

Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	$ 0	$ 0
Impaired loans considered to be credit risk of non-collection	100
Updated appraisal requirement floor	250
Other real estate owned	2,997		$ 2,765
Financial instrument of credit risk	200		$ 200
Fair Value, Assets Measured on Recurring Basis, Gain (Loss) Included in Other Income, Assets and Liabilities Continue to be held	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0	0
Total gains or losses included in earnings	2,840	0
Other Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0
Total gains or losses included in earnings	$ 0	$ 0
Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Swap Rates Term Used to Determine Yield Curve	3 years
Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Swap Rates Term Used to Determine Yield Curve	30 years

XML

Fair Values of Assets and Liabilities - Schedule of Assets Measured on Non-Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 853,683	$ 779,966
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	45,784	38,494
Other real estate owned	3,278	3,264
Total Assets	49,062	41,758
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	0	0
Total Assets	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	835,589	752,507
Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	26,546	23,249
Other real estate owned	3,278	3,264
Total Assets	29,824	26,513
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	18,094	27,459
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	19,238	15,245
Other real estate owned	0	0
Total Assets	$ 19,238	$ 15,245

XML

Fair Values of Assets and Liabilities - Losses Realized on Assets Measured on Non-Recurring Basis (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Impaired loans	$ (7,850)	$ (1,460)
Other real estate owned	(30)	(31)
Total losses	$ (7,880)	$ (1,491)

XML

Fair Values of Assets and Liabilities - Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Carrying Amount [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Cash and due from banks	$ 65,886	$ 98,624
Interest-bearing deposits	9,736	8,668
Securities available for sale, at fair value	812,877	731,358
Held-to-maturity Securities	410,430	422,096
Other investments	24,400
Loans Held for sale, Amount	9,759	14,850
Loans and Leases Receivable, Net of Deferred Income	5,381,305	5,407,376
Deposits	5,703,522	5,580,705
Short-term borrowings	588,016	707,466
Subordinated debt	72,167	72,167
Long-term debt	8,011	8,161
Capital Lease Obligations	7,498	7,590
Estimate of Fair Value Measurement [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Cash and due from banks	65,886	98,624
Interest-bearing deposits	9,736	8,668
Securities available for sale, at fair value	812,877	731,358
Held-to-maturity Securities	399,528	418,249
Other investments	24,400	29,837
Loans Held for sale, Amount	9,759	14,850
Loans and Leases Receivable, Net of Deferred Income	5,399,240	5,443,434
Deposits	5,701,021	5,580,812
Short-term borrowings	587,834	707,263
Subordinated debt	70,114	65,785
Long-term debt	8,237	8,548
Capital Lease Obligations	7,498	7,590
Estimate of Fair Value Measurement [Member] | Level 1 [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Cash and due from banks	65,886	98,624
Interest-bearing deposits	9,736	8,668
Securities available for sale, at fair value	0	0
Held-to-maturity Securities	0	0
Other investments	0	0
Loans Held for sale, Amount	0	0
Loans and Leases Receivable, Net of Deferred Income	0	0
Deposits	0	0
Short-term borrowings	0	0
Subordinated debt	0	0
Long-term debt	0	0
Capital Lease Obligations	0	0
Estimate of Fair Value Measurement [Member] | 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, at fair value	797,075	706,042
Held-to-maturity Securities	399,528	418,249
Other investments	24,400	29,837
Loans Held for sale, Amount	9,759	14,850
Loans and Leases Receivable, Net of Deferred Income	26,546	23,249
Deposits	5,701,021	5,580,812
Short-term borrowings	587,834	707,263
Subordinated debt	0	0
Long-term debt	8,237	8,548
Capital Lease Obligations	7,498	7,590
Estimate of Fair Value Measurement [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, at fair value	15,802	25,316
Held-to-maturity Securities	0	0
Other investments	0	0
Loans Held for sale, Amount	0	0
Loans and Leases Receivable, Net of Deferred Income	5,372,694	5,420,185
Deposits	0	0
Short-term borrowings	0	0
Subordinated debt	70,114	65,785
Long-term debt	0	0
Capital Lease Obligations	$ 0	$ 0

XML

Derivatives - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) Derivatives	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Risk participation Agreements [Line Items]
HedgedItemsOfCashFlowHedge	$ 115,000
Risk Participation Agreements Purchased [Domain]
Risk participation Agreements [Line Items]
Number of interest rate swaps | Derivatives	37
Risk Participation Agreements Sold [Domain]
Risk participation Agreements [Line Items]
Number of interest rate swaps | Derivatives	12
Forward Contracts [Member]
Risk participation Agreements [Line Items]
Derivative, Net Hedge Ineffectiveness Gain (Loss)	$ (62)	$ 112
Derivative Liability, Cost Basis, Gross Asset	7,000		$ 14,300
Derivative Liability, Fair Value, Gross Asset	7,200		14,700
Derivative Liability, Notional Amount, Gross Asset	18,300		13,800
Forward Contracts [Member] | Designated as Hedging Instrument [Member]
Risk participation Agreements [Line Items]
Derivative, Fair Value, Net	(81)		(19)
Derivative, Notional Amount	22,000		17,000
Foreign Exchange [Member]
Risk participation Agreements [Line Items]
Derivative, Net Hedge Ineffectiveness Gain (Loss)	(3)	2
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Risk participation Agreements [Line Items]
Derivative, Fair Value, Net	13		70
Derivative, Notional Amount	7,858		10,077
Derivative Liability, Cost Basis, Gross Asset	7,800		10,000
Derivative Liability, Fair Value, Gross Asset	7,800		10,100
Interest Rate Swap [Member]
Risk participation Agreements [Line Items]
Derivative Instruments Designated As Hedging Instruments Interest Income	(81)	249
Derivative, Net Hedge Ineffectiveness Gain (Loss)	0	$ 78
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Risk participation Agreements [Line Items]
Derivative, Fair Value, Net	590		(459)
Derivative, Notional Amount	$ 115,000		$ 150,000

XML

Derivatives - Credit Value Adjustment Recorded Related to Notional Amount of Derivatives Outstanding (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Fair Value, Net	$ (2)	$ (791)
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	(408,973)	(401,304)
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Fair Value, Net	(590)	459
Derivative, Notional Amount	(115,000)	(150,000)
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	(46,361)	(46,444)
Credit Default Swap [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	(189,491)	(197,660)
Forward Contracts [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Fair Value, Net	81	19
Derivative, Notional Amount	(22,000)	(17,000)
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Fair Value, Net	(13)	(70)
Derivative, Notional Amount	(7,858)	(10,077)
Short [Member] | Credit Default Swap, Selling Protection [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ (63,345)	$ (46,170)

XML

Derivatives - Schedule of Changes in Fair Value of Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 789	$ 2
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Instruments Designated As Hedging Instruments Interest Income	(81)	249
Derivative, Net Hedge Ineffectiveness Gain (Loss)	0	78
Forward Contracts [Member]
Derivative [Line Items]
Derivative, Net Hedge Ineffectiveness Gain (Loss)	(62)	112
Foreign Exchange [Member]
Derivative [Line Items]
Derivative, Net Hedge Ineffectiveness Gain (Loss)	$ (3)	$ 2

XML

Goodwill - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Goodwill Disclosure [Abstract]
Goodwill	$ 255,180,000		$ 255,353,000
Goodwill, Period Increase (Decrease)	(200,000)
Impairment charges on goodwill	$ 0	$ 0

XML

Revenue Recognition Revenue Recognition (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Additional Information [Abstract]
Management Fees, Incentive Revenue	$ 0.3
Brokerage Commissions Revenue	$ 0.4

XML

Revenue Recognition In-Scope and Out-of-Scope Revenue Streams (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Trust income	$ 1,928	$ 1,417
Service charges on deposit accounts	4,406	4,319
Insurance and retail brokerage commissions	1,868	2,082
Card-related interchange income	4,742	4,251
Derivatives mark to market	789	2
Gain on sale of other loans and assets	574	307
Other income	1,628	1,706
Noninterest Income	22,043	16,932
In-Scope of Topic 606 [Member]
Trust income	1,928	1,417
Service charges on deposit accounts	4,406	4,319
Insurance and retail brokerage commissions	1,868	2,082
Card-related interchange income	4,742	4,251
Gain on sale of other loans and assets	207	190
Other income	892	945
Noninterest Income	14,043	13,204
Out-Of-Scope of Topic 606 [Member]
Noninterest Income	$ 8,000	$ 3,728

XML

Revenue Recognition Transition Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net securities gains	$ 2,840	$ 652
Trust income	1,928	1,417
Service charges on deposit accounts	4,406	4,319
Insurance and retail brokerage commissions	1,868	2,082
Income from bank owned life insurance	1,494	1,292
Gain on sale of mortgage loans	1,484	977
Gain on sale of other loans and assets	574	307
Card-related interchange income	4,742	4,251
Derivatives mark to market	789	2
Derivative Fee Income	290	(73)
Other income	1,628	1,706
Noninterest Income	22,043	16,932
Salaries and employee benefits	24,873	23,466
Net occupancy expense	4,369	3,761
Furniture and equipment expense	3,540	3,088
Data processing expense	2,433	2,085
Marketing and Advertising Expense	809	806
Pennsylvania shares tax expense	903	816
Intangible amortization	784	572
Collection and repossession expense	823	497
Other professional fees and services	1,007	959
FDIC insurance	776	793
Loss on sale or write-down of assets	197	99
Litigation and operational losses	179	232
Conversion Related Expenses	337	611
Other operating expenses	5,843	4,980
Noninterest Expense	46,873	$ 42,765
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net securities gains	2,840
Trust income	1,928
Service charges on deposit accounts	4,406
Insurance and retail brokerage commissions	2,248
Income from bank owned life insurance	1,494
Gain on sale of mortgage loans	1,484
Gain on sale of other loans and assets	574
Card-related interchange income	4,742
Derivatives mark to market	789
Derivative Fee Income	290
Other income	1,854
Noninterest Income	22,649
Salaries and employee benefits	25,253
Net occupancy expense	4,369
Furniture and equipment expense	3,540
Data processing expense	2,509
Marketing and Advertising Expense	809
Pennsylvania shares tax expense	903
Intangible amortization	784
Collection and repossession expense	823
Other professional fees and services	1,007
FDIC insurance	776
Loss on sale or write-down of assets	197
Litigation and operational losses	179
Conversion Related Expenses	337
Other operating expenses	5,993
Noninterest Expense	47,479
Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net securities gains	0
Trust income	0
Service charges on deposit accounts	0
Insurance and retail brokerage commissions	(380)
Income from bank owned life insurance	0
Gain on sale of mortgage loans	0
Gain on sale of other loans and assets	0
Card-related interchange income	0
Derivatives mark to market	0
Derivative Fee Income	0
Other income	(226)
Noninterest Income	(606)
Salaries and employee benefits	(380)
Net occupancy expense	0
Furniture and equipment expense	0
Data processing expense	(76)
Marketing and Advertising Expense	0
Pennsylvania shares tax expense	0
Intangible amortization	0
Collection and repossession expense	0
Other professional fees and services	0
FDIC insurance	0
Loss on sale or write-down of assets	0
Litigation and operational losses	0
Conversion Related Expenses	0
Other operating expenses	(150)
Noninterest Expense	(606)
Net Impact of Topic 606	$ 0

XML

Subsequent Event (Details) - Subsequent Event [Member] $ in Millions	May 01, 2018 USD ($) branch
Subsequent Event [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $	$ 207
Branch Acquisition, Number of Branches | branch	5