
	2025								2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	2,638	$	23	$	(165)	$	2,496	$	3,096	$	14	$	(212)	$	2,898
Mortgage-Backed Securities – Commercial	701,572		3,788		(43,671)		661,689		779,232		2,489		(57,546)		724,175
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	336,493		1,087		(42,057)		295,523		413,434		1,481		(64,331)		350,584

Other Government-Sponsored Enterprises	1,000		—		(16)		984		1,000		—		(54)		946
Obligations of States and Political Subdivisions	7,560		1		(590)		6,971		8,510		—		(983)		7,527
Corporate Securities	46,969		782		(1,220)		46,531		62,475		1,454		(2,436)		61,493



Total Securities Available for Sale	$	1,096,232	$	5,681	$	(87,719)	$	1,014,194	$	1,267,747	$	5,438	$	(125,562)	$	1,147,623

Mortgage-backed securities include mortgage-backed obligations of U.S. Government agencies and obligations of U.S. Government-sponsored enterprises. These obligations have contractual maturities ranging from less than one year to approximately 42 years with lower anticipated lives to maturity due to prepayments. All mortgage-backed securities contain a certain amount of risk related to the uncertainty of prepayments of the underlying mortgages. Interest rate changes have a direct impact upon prepayment speeds; therefore, First Commonwealth uses computer simulation models to test the average life and yield volatility of all mortgage backed securities under various interest rate scenarios to monitor the potential impact on earnings and interest rate risk positions.

Expected maturities will differ from contractual maturities because issuers may have the right to call or repay obligations with or without call or prepayment penalties. Other fixed income securities within the portfolio also contain prepayment risk.


	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	1,000	$	984
Due after 1 but within 5 years	35,035		34,797
Due after 5 but within 10 years	19,494		18,705
Due after 10 years	—		—
	55,529		54,486
Mortgage-Backed Securities (a)	1,040,703		959,708
Total Debt Securities	$	1,096,232	$	1,014,194

(a)Mortgage-Backed Securities include an amortized cost of $704.2 million and a fair value of $664.2 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $336.5 million and a fair value of $295.5 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.


	2025		2024		2023
	(dollars in thousands)
Proceeds from sales	$	69,862	$	69,598	$	33,756
Gross (losses) gains realized:
Sales Transactions:
Gross gains	$	—	$	—	$	—
Gross losses	(5,142)		(5,535)		(103)
	(5,142)		(5,535)		(103)
Maturities
Gross gains	794		89		—
Gross losses	—		—		—

	794		89		—
Net (losses) gains	$	(4,348)	$	(5,446)	$	(103)

For 2025, $48.5 million of the proceeds from sales in the above table are a result of management selling $53.7 million in available for sale investment securities yielding 2.61% and reinvesting the proceeds into securities yielding 5.41%. Additionally, $21.4 million in proceeds from sales are a result of the sale of investments acquired as part of the Center acquisition. All of the acquired investments were recorded at fair value at the time of acquisition and subsequently sold at the same value. Gains from maturities in the above table are related to the call of two corporate subordinated debt issues.

For 2024, proceeds from sales included in above table are a result of management selling $75.1 million in available for sale investment securities yielding 2.17% and reinvesting the proceeds into securities yielding 5.49%.

For 2023, proceeds from sales included in above table are a result of the sale of investments acquired as part of the Centric acquisition. All of the acquired investments were recorded at fair value at the time of acquisition and subsequently sold at the same value, with the exception of one corporate security. This security was sold in the third quarter of 2023 at a loss of $103 thousand.

Securities available for sale with an approximate fair value of $624.0 million and $580.5 million were pledged as of December 31, 2025 and 2024, respectively, to secure public deposits and for other purposes required or permitted by law.

During the second quarter of 2024, Visa commenced an exchange offer for any and all outstanding shares of its Class B-1 common stock for a combination of Visa's Class B-2 common stock, Class C common stock and, where applicable, cash in lieu of fractional shares. As part of this exchange, each share of Class B-1 common stock would be exchanged for one half share of the newly issued Class B-2 common stock and Class C common stock would be issued in an amount equivalent to one half of a share of Class B-1 common stock. The Company opted to participate in this exchange offer prior to its expiration and received 13,340 Class B-2 shares and 5,294 Class C shares. In 2024, the Class C shares were sold at fair value resulting in a gain of $5.7 million. During the first quarter of 2025, the Class B-2 shares, which were carried with a zero basis, were sold, resulting in a $5.1 million gain.


	2025								2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	1,379	$	—	$	(144)	$	1,235	$	1,586	$	—	$	(220)	$	1,366
Mortgage-Backed Securities – Commercial	163,625		606		(12,320)		151,911		89,404		66		(14,785)		74,685
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	307,676		485		(33,395)		274,766		266,587		—		(47,564)		219,023
Mortgage-Backed Securities – Commercial	—		—		—		—		—		—		—		—
Other Government-Sponsored Enterprises	23,199		—		(2,735)		20,464		22,869		—		(4,155)		18,714
Obligations of States and Political Subdivisions	22,743		—		(1,250)		21,493		24,193		—		(2,246)		21,947
Debt Securities Issued by Foreign Governments	800		—		(4)		796		1,000		—		(16)		984




Total Securities Held to Maturity	$	519,422	$	1,091	$	(49,848)	$	470,665	$	405,639	$	66	$	(68,986)	$	336,719

The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties.


	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	1,804	$	1,793
Due after 1 but within 5 years	16,845		16,126
Due after 5 but within 10 years	27,529		24,363
Due after 10 years	564		471
	46,742		42,753
Mortgage-Backed Securities (a)	472,680		427,912
Total Debt Securities	$	519,422	$	470,665

(a)Mortgage-Backed Securities include an amortized cost of $165.0 million and a fair value of $153.1 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $307.7 million and a fair value of $274.8 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 $349.2 million and $247.5 million were pledged as of December 31, 2025 and 2024, respectively, to secure public deposits for other purposes required or permitted by law.

As a member of the FHLB, First Commonwealth is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. The level of stock required to be held is dependent on the amount of First Commonwealth's mortgage related assets and outstanding borrowings with the FHLB. This stock is restricted in that it can only be sold to the FHLB or to

another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. As of December 31, 2025 and 2024, our FHLB stock totaled $32.6 million and $25.2 million, respectively and is included in “Other investments” on the Consolidated Statements of Financial Condition.

FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. First Commonwealth evaluates impairment quarterly and has concluded that the par value of its investment in FHLB stock will be recovered. Accordingly, no impairment charge was recorded on these securities for the year ended December 31, 2025.

At both December 31, 2025 and 2024, "Other investments" also includes $5.7 million of securities that include bankers bank membership stock and investments in community development organizations. These securities do not have a readily determinable fair value and are carried at cost. For the years ended December 31, 2025 and 2024, there were no gains or losses recognized through earnings on equity securities. On a quarterly basis, management evaluates equity securities by reviewing research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, regulatory filings, impact of interest rate changes and other relevant information.

We review our investment portfolio on a quarterly basis for indications of impairment. For available for sale securities the review includes analyzing the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and whether we are more likely than not to sell the security. We evaluate whether we are more likely than not to sell debt securities based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy, tax position and interest rate risk position. Held-to-maturity securities are evaluated for impairment on a quarterly basis using historical probability of default and loss given default information specific to the investment category. If this evaluation determines that credit losses exist, an allowance for credit loss is recorded and included in earnings as a component of credit loss expense.

The following table presents the gross unrealized losses and estimated fair values at December 31, 2025 for available for sale securities for which an allowance for credit losses has not been recorded and held to maturity securities by investment category and time frame for which the securities have been in a continuous unrealized loss position:


	Less Than 12 Months				12 Months or More				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	—	$	—	$	2,789	$	(309)	$	2,789	$	(309)
Mortgage-Backed Securities – Commercial	77,195		(509)		270,142		(55,482)		347,337		(55,991)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	19,924		(95)		438,740		(75,357)		458,664		(75,452)
Mortgage-Backed Securities – Commercial	—		—		—		—		—		—
Other Government-Sponsored Enterprises	—		—		21,448		(2,751)		21,448		(2,751)
Obligations of States and Political Subdivisions	—		—		26,563		(1,840)		26,563		(1,840)
Debt Securities Issued by Foreign Governments	—		—		596		(4)		596		(4)
Corporate Securities	5,492		(3)		22,845		(1,217)		28,337		(1,220)



Total Securities	$	102,611	$	(607)	$	783,123	$	(136,960)	$	885,734	$	(137,567)

At December 31, 2025, fixed income securities issued by U.S. Government Agencies and U.S. Government-sponsored enterprises comprised 98% of total unrealized losses. All unrealized losses are a result of changes in market interest rates. At December 31, 2025, there were 143 debt securities in an unrealized loss position. There were no equity securities in an unrealized loss position at December 31, 2025.

The following table presents the gross unrealized losses and estimated fair value at December 31, 2024 for both available for sale and held to maturity securities by investment category and time frame for which the securities had been in a continuous unrealized loss position:


	Less Than 12 Months				12 Months or More				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	242	$	(1)	$	3,002	$	(431)	$	3,244	$	(432)
Mortgage-Backed Securities – Commercial	258,712		(4,119)		274,358		(68,212)		533,070		(72,331)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	4,759		(56)		497,445		(111,839)		502,204		(111,895)
Mortgage-Backed Securities – Commercial	—		—		—		—		—		—
Other Government-Sponsored Enterprises	—		—		19,660		(4,209)		19,660		(4,209)
Obligations of States and Political Subdivisions	1,104		(11)		28,097		(3,218)		29,201		(3,229)
Debt Securities Issued by Foreign Governments	—		—		584		(16)		584		(16)
Corporate Securities	9,701		(506)		17,321		(1,930)		27,022		(2,436)

Total Securities	$	274,518	$	(4,693)	$	840,467	$	(189,855)	$	1,114,985	$	(194,548)

As of December 31, 2025, our corporate securities had an amortized cost and estimated fair value of $47.0 million and $46.5 million, respectively. At December 31, 2024, these securities had an amortized cost of $62.5 million and estimated fair value of $61.5 million. Corporate securities are comprised of debt issued by large regional banks. When unrealized losses exist, management reviews each of the issuer’s asset quality, earnings trend and capital position, to determine whether the unrealized loss position is a result of credit losses. All interest payments on the corporate securities are being made as contractually required.