Investments, Equity Method and Joint Ventures

12 Months Ended

Dec. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure

Investments in Limited Partnerships

First Commonwealth has invested in several limited partnerships that provide tax and regulatory benefits due to the nature of the partnerships. These investments include: 16 investments in Small Business Investment Companies ("SBIC's") whose purpose is to provide seed money and capital to startup companies, 10 Community Development Financial Institution Funds ("CDFIs") whose purpose is to develop and operate real estate projects in low-income communities and 3 Low Income Housing Tax Credits ("LIHTC") projects whose purpose is to invest in approved low-income housing investment tax credit projects.

Our investments represent unconsolidated variable interest entities ("VIE's") because we are not considered the primary beneficiary. We have determined that we are not the primary beneficiary of these VIE's because we do not have the power to direct the activities that most significantly impact their economic performance.

All of our limited partnership investments are privately held and their market values are not readily available. These investments are accounted for using the equity method of accounting and are included in "Other assets" in the Consolidated Statement of Financial Condition. Income from these investments is included in "Other income" in the Consolidated Statements of Income and totaled $1.4 million in 2025, $1.5 million in 2024 and $0.8 million in 2023.

As of December 31, First Commonwealth's investment in and unfunded commitment to these partnerships are as follows:

	2025		2024
	(dollars in thousands)
Investment
SBIC	$	18,392	$	15,081
LIHTC	10,561		11,737
CDFI	7,100		7,339
Other	580		604
Total limited investment partnerships	$	36,633	$	34,761
Unfunded commitment
SBIC	$	12,383	$	10,804
LIHTC	2,019		4,979
CDFI	7,000		3,761
Other	42		60
Total unfunded commitment	$	21,444	$	19,604

The unconditional unfunded equity commitments related to LIHTC investments are recognized in other liabilities. The following table presents the scheduled equity commitments to be paid to LIHTC limited partnerships over the next five years and in the aggregate thereafter as of December 31, 2025:

2026	$	925
2027	346
2028	168
2029	161
2030	159
Thereafter	260
Total	$	2,019

The Company classifies the amortization of LIHTC investments as a component of income tax expense and proportionally amortizes the investment over the tax credit period. The amortization and tax benefits attributed to these partnerships, which include low-income housing and historic tax credits, are as follows as of December 31:

	2025		2024		2023
	(dollars in thousands)
Proportional amortization expense included in the provision for income taxes	$	850	$	795	$	1,223
Tax credits and other tax benefits recognized	1,176		853		631