Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FCF | ||
Entity Registrant Name | FIRST COMMONWEALTH FINANCIAL CORP /PA/ | ||
Entity Central Index Key | 712537 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 90,523,277 | ||
Entity Public Float | $851,661,514 |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Cash and due from banks | $72,276,000 | $74,427,000 |
Interest-bearing bank deposits | 2,262,000 | 3,012,000 |
Securities available for sale, at fair value | -1,309,819,000 | -1,318,365,000 |
Other investments | 44,545,000 | 35,444,000 |
Loans held for sale | 2,502,000 | 0 |
Loans: | ||
Portfolio loans | 4,457,308,000 | 4,283,833,000 |
Allowance for credit losses | -52,051,000 | -54,225,000 |
Net loans | 4,405,257,000 | 4,229,608,000 |
Premises and equipment, net | 64,989,000 | 67,940,000 |
Other real estate owned | 7,197,000 | 11,728,000 |
Goodwill | 161,429,000 | 159,956,000 |
Amortizing intangibles, net | 1,665,000 | 1,311,000 |
Bank owned life insurance | 177,567,000 | 174,372,000 |
Other assets | 110,777,000 | 138,698,000 |
Total assets | 6,360,285,000 | 6,214,861,000 |
Deposits (all domestic): | ||
Noninterest-bearing | 989,027,000 | 912,361,000 |
Interest-bearing | 3,326,484,000 | 3,691,502,000 |
Total deposits | 4,315,511,000 | 4,603,863,000 |
Short-term borrowings | 1,105,876,000 | 626,615,000 |
Subordinated debentures | 72,167,000 | 72,167,000 |
Other long-term debt | 89,459,000 | 144,385,000 |
Total long-term debt | 161,626,000 | 216,552,000 |
Other liabilities | 61,127,000 | 56,134,000 |
Total liabilities | 5,644,140,000 | 5,503,164,000 |
Shareholders’ Equity | ||
Preferred stock, $1 par value per share, 3,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $1 par value per share, 200,000,000 shares authorized; 105,563,455 shares issued as of December 31, 2014 and 2013; and 91,723,028 shares and 95,245,215 shares outstanding at December 31, 2014 and 2013, respectively | 105,563,000 | 105,563,000 |
Additional paid-in capital | 365,615,000 | 365,333,000 |
Retained earnings | 353,027,000 | 334,748,000 |
Accumulated other comprehensive (loss) income, net | -4,499,000 | -20,588,000 |
Treasury stock (13,840,427 and 10,318,240 shares at December 31, 2014 and 2013, respectively) | -103,561,000 | -73,359,000 |
Total shareholders’ equity | 716,145,000 | 711,697,000 |
Total liabilities and shareholders’ equity | $6,360,285,000 | $6,214,861,000 |
CONSOLIDATED_STATEMENTS_OF_FIN1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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) | 105,563,455 | 105,563,455 |
Common stock, shares outstanding (in shares) | 91,723,028 | 95,245,215 |
Treasury stock, shares (in shares) | 13,840,427 | 10,318,240 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Income | |||
Interest and fees on loans | $171,196 | $176,129 | $187,258 |
Interest and dividends on investments: | |||
Taxable interest | 28,767 | 29,916 | 31,695 |
Interest exempt from federal income taxes | 311 | 4 | 12 |
Dividends | 1,895 | 302 | 104 |
Interest on bank deposits | 12 | 7 | 6 |
Total interest income | 202,181 | 206,358 | 219,075 |
Interest Expense | |||
Interest on deposits | 12,453 | 15,596 | 21,454 |
Interest on short-term borrowings | 2,449 | 1,262 | 1,070 |
Interest on subordinated debentures | 2,292 | 3,128 | 5,684 |
Interest on other long-term debt | 1,307 | 1,721 | 1,938 |
Total interest expense | 18,501 | 21,707 | 30,146 |
Net Interest Income | 183,680 | 184,651 | 188,929 |
Provision for credit losses | 11,196 | 19,227 | 20,544 |
Net Interest Income after Provision for Credit Losses | 172,484 | 165,424 | 168,385 |
Noninterest Income | |||
Net securities gains (losses) | 550 | -1,158 | 192 |
Trust income | 6,000 | 6,166 | 6,206 |
Service charges on deposit accounts | 15,661 | 15,652 | 14,743 |
Insurance and retail brokerage commissions | 6,483 | 6,005 | 6,272 |
Bank Owned Life Insurance Income | 5,502 | 5,539 | 5,850 |
Gain on sale of assets | 4,996 | 2,153 | 4,607 |
Card related interchange income | 14,222 | 13,746 | 13,199 |
Other income | 7,445 | 12,060 | 14,365 |
Total noninterest income | 60,859 | 60,163 | 65,434 |
Noninterest Expense | |||
Salaries and employee benefits | 87,223 | 86,012 | 86,069 |
Net occupancy expense | 13,119 | 13,607 | 13,255 |
Furniture and equipment expense | 17,812 | 15,118 | 12,460 |
Data processing expense | 6,124 | 6,009 | 7,054 |
Marketing and Advertising Expense | 2,953 | 3,129 | 4,157 |
Contributions | 1,431 | 784 | 1,195 |
Pennsylvania shares tax expense | 3,776 | 5,638 | 5,706 |
Intangible amortization | 631 | 1,064 | 1,467 |
Collection and repossession expense | 2,754 | 3,836 | 5,756 |
Other professional fees and services | 3,986 | 3,731 | 4,329 |
FDIC insurance | 4,054 | 4,366 | 5,032 |
Loss on sale or write-down of assets | 1,595 | 1,054 | 7,394 |
Litigation and operational losses | 6,786 | 1,115 | 4,367 |
Loss on early redemption of subordinated debt | 0 | 1,629 | 0 |
Conversion related expenses | 1,788 | 2,588 | 0 |
Other operating expenses | 17,178 | 19,144 | 18,966 |
Total noninterest expense | 171,210 | 168,824 | 177,207 |
Income before income taxes | 62,133 | 56,763 | 56,612 |
Income tax provision | 17,680 | 15,281 | 14,658 |
Net Income | $44,453 | $41,482 | $41,954 |
Average Shares Outstanding (in shares) | 93,114,654 | 97,028,157 | 103,885,396 |
Average Shares Outstanding Assuming Dilution (in shares) | 93,114,654 | 97,029,832 | 103,885,663 |
Per Share Data: | |||
Basic Earnings Per Share (in dollars per share) | $0.48 | $0.43 | $0.40 |
Diluted Earnings Per Share (in dollars per share) | $0.48 | $0.43 | $0.40 |
Cash Dividends Declared per Common Share (in dollars per share) | $0.28 | $0.23 | $0.18 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income | $44,453 | $41,482 | $41,954 |
Other comprehensive income (loss), before tax expense (benefit): | |||
Unrealized holding gains (losses) on securities arising during the period | 25,153 | -34,975 | -661 |
Less: reclassification adjustment for (gains) losses on securities included in net income | -550 | 1,158 | -192 |
Unrealized holding gains on derivatives arising during the period | 472 | 0 | 0 |
Reclassification adjustment for gains on derivatives included in net income | -10 | 0 | 0 |
Unrealized (losses) gains for postretirement obligations: | |||
Transition obligation | 0 | 0 | 2 |
Net (loss) gain | -313 | 219 | -300 |
Total other comprehensive income (loss), before tax expense (benefit) | 24,752 | -33,598 | -1,151 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 8,663 | -11,751 | -409 |
Comprehensive Income | $60,542 | $19,635 | $41,212 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in-Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), net [Member] | Treasury Stock [Member] | Unearned ESOP Shares [Member] |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2011 | $758,543 | $105,563 | $365,868 | $294,056 | $2,001 | ($7,345) | ($1,600) |
Beginning balance, Shares Outstanding at Dec. 31, 2011 | 104,916,994 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 41,954 | 41,954 | |||||
Total other comprehensive (loss) Income | -742 | -742 | |||||
Cash dividends declared | -18,759 | -18,759 | |||||
Net decrease in unearned ESOP shares | 1,600 | 1,600 | |||||
ESOP market value adjustment | -474 | -474 | |||||
Discount on dividend reinvestment plan purchases | -92 | -92 | |||||
Tax benefit of stock options exercised | 1 | 1 | |||||
Treasury stock acquired | -37,464 | -37,464 | |||||
Treasury stock acquired, Shares Outstanding | -5,662,700 | ||||||
Treasury stock reissued | 1,028 | 0 | -379 | 1,407 | |||
Treasury stock reissued, Shares Outstanding | 155,200 | ||||||
Restricted stock | 412 | 0 | 51 | -1,264 | 1,625 | ||
Restricted stock, Shares Outstanding | 220,000 | ||||||
Ending balance at Dec. 31, 2012 | 746,007 | 105,563 | 365,354 | 315,608 | 1,259 | -41,777 | 0 |
Ending balance, Shares Outstanding at Dec. 31, 2012 | 99,629,494 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 41,482 | 41,482 | |||||
Total other comprehensive (loss) Income | -21,847 | -21,847 | |||||
Cash dividends declared | -22,344 | -22,344 | |||||
Discount on dividend reinvestment plan purchases | -112 | -112 | |||||
Treasury stock acquired | -32,217 | -32,217 | |||||
Treasury stock acquired, Shares Outstanding | -4,462,638 | ||||||
Treasury stock reissued | 176 | 0 | 0 | 176 | |||
Treasury stock reissued, Shares Outstanding | 25,359 | ||||||
Restricted stock | 552 | 0 | 91 | 2 | 459 | ||
Restricted stock, Shares Outstanding | 53,000 | ||||||
Ending balance at Dec. 31, 2013 | 711,697 | 105,563 | 365,333 | 334,748 | -20,588 | -73,359 | |
Ending balance, Shares Outstanding at Dec. 31, 2013 | 95,245,215 | 95,245,215 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 44,453 | 44,453 | |||||
Total other comprehensive (loss) Income | 16,089 | 16,089 | |||||
Cash dividends declared | -26,174 | -26,174 | |||||
Discount on dividend reinvestment plan purchases | -65 | -65 | |||||
Treasury stock acquired | -30,956 | -30,956 | |||||
Treasury stock acquired, Shares Outstanding | -3,636,634 | ||||||
Treasury stock reissued | 192 | 35 | 0 | 157 | |||
Treasury stock reissued, Shares Outstanding | 21,960 | ||||||
Restricted stock | 909 | 0 | 312 | 0 | 597 | ||
Restricted stock, Shares Outstanding | 92,487 | ||||||
Ending balance at Dec. 31, 2014 | $716,145 | $105,563 | $365,615 | $353,027 | ($4,499) | ($103,561) | |
Ending balance, Shares Outstanding at Dec. 31, 2014 | 91,723,028 | 91,723,028 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Dividends Declared per Common Share (in dollars per share) | $0.23 | $0.18 |
ESOP market value adjustment, tax benefit | $255 | |
Common Stock [Member] | ||
Cash Dividends Declared per Common Share (in dollars per share) | $0.23 | $0.18 |
Additional Paid-in-Capital [Member] | ||
ESOP market value adjustment, gross | $729 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net Income | $44,453 | $41,482 | $41,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 11,196 | 19,227 | 20,544 |
Deferred tax expense | 4,862 | 12,704 | 2,551 |
Depreciation and amortization | 13,721 | 11,090 | 7,912 |
Net losses on securities and other assets | 2,832 | 431 | 1,838 |
Net amortization of premiums and discounts on securities | 2,233 | 543 | 1,381 |
Net amortization of premiums and discounts on long-term debt | -37 | -117 | -113 |
Income from increase in cash surrender value of bank owned life insurance | 5,275 | 5,539 | 5,850 |
Payments for Origination of Mortgage Loans Held-for-sale | -17,697 | 0 | 0 |
Proceeds from Sale of Mortgage Loans Held-for-sale | 15,598 | 0 | 0 |
Decrease in interest receivable | 542 | 921 | 2,689 |
Decrease in interest payable | -404 | -1,172 | -1,280 |
Decrease in prepaid FDIC insurance | 0 | 9,205 | 4,693 |
Decrease (increase) in income taxes payable | 1,860 | -615 | 6,484 |
Otherbnet | 8,253 | -2,426 | -4,079 |
Net cash provided by operating activities | 82,137 | 85,734 | 78,724 |
Transactions with securities available for sale: | |||
Proceeds from sales | 132,868 | 671 | 0 |
Proceeds from maturities and redemptions | 242,895 | 356,667 | 574,846 |
Purchases | -339,649 | -539,894 | -605,435 |
Purchases of FHLB stock | -40,920 | -18,120 | 0 |
Proceeds from the redemption of FHLB stock | 31,819 | 10,904 | 11,568 |
Proceeds from bank owned life insurance | 2,080 | 2,092 | 2,501 |
Proceeds from the sale of loans | 3,112 | 20,760 | 15,981 |
Proceeds from sales of other assets | 12,882 | 12,713 | 17,660 |
Payments to Acquire Businesses, Net of Cash Acquired | -3,042 | 0 | 0 |
Net increase in loans | -195,120 | -143,438 | -178,321 |
Purchases of premises and equipment | -10,980 | -9,635 | -10,182 |
Net cash used in investing activities | -164,055 | -307,280 | -171,382 |
Financing Activities | |||
Net decrease in federal funds purchased | -7,000 | -18,000 | -41,300 |
Net increase in other short-term borrowings | 486,261 | 288,387 | 84,750 |
Net (decrease) increase in deposits | -288,352 | 46,006 | 53,256 |
Repayments of other long-term debt | -59,889 | -29,969 | -25,480 |
Proceeds from issuance of long-term debt | 5,000 | 0 | 100,000 |
Repayments of subordinated debentures | 0 | -34,702 | 0 |
Discount on dividend reinvestment plan purchases | -65 | -112 | -92 |
Dividends paid | -26,174 | -22,344 | -18,759 |
Proceeds from reissuance of treasury stock | 192 | 176 | 1,028 |
Purchase of treasury stock | -30,956 | -33,439 | -36,242 |
Stock option tax benefit | 0 | 0 | 1 |
Net cash provided by financing activities | 79,017 | 196,003 | 117,162 |
Net (decrease) increase in cash and cash equivalents | -2,901 | -25,543 | 24,504 |
Cash and cash equivalents at January 1 | 77,439 | 102,982 | 78,478 |
Cash and cash equivalents at December 31 | $74,538 | $77,439 | $102,982 |
Statement_of_Accounting_Polici
Statement of Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Statement of Accounting Policies | Statement of Accounting Policies | |
General | ||
The following summary of accounting and reporting policies is presented to aid the reader in obtaining a better understanding of the consolidated financial statements of First Commonwealth Financial Corporation and its subsidiaries (“First Commonwealth”) contained in this report. | ||
The financial information is presented in accordance with generally accepted accounting principles and general practice for financial institutions in the United States of America. In preparing financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. In addition, these estimates and assumptions affect revenues and expenses in the financial statements and as such, actual results could differ from those estimates. | ||
Through its subsidiaries, which include one commercial bank, an insurance agency and a financial advisor, First Commonwealth provides a full range of loan, deposit, trust, insurance and personal financial planning services primarily to individuals and small to middle market businesses in fifteen counties in central and western Pennsylvania. First Commonwealth has determined that it has one business segment. | ||
First Commonwealth is subject to regulations of certain state and federal agencies. These regulatory agencies periodically examine First Commonwealth for adherence to laws and regulations. | ||
Basis of Presentation | ||
The accompanying Consolidated Financial Statements include the accounts of First Commonwealth previously defined above. All material intercompany transactions have been eliminated in consolidation. | ||
Equity investments of less than a majority but at least 20% ownership are accounted for by the equity method and classified as “Other assets.” Earnings on these investments are reflected in “Other income” on the Consolidated Statements of Income, as appropriate, in the period earned. | ||
First Commonwealth’s variable interest entities (“VIEs”) are evaluated under the guidance included in ASU 2009-17. These VIEs include qualified affordable housing projects that First Commonwealth has invested in as part of its community reinvestment initiatives and vehicles that issue trust preferred securities. We periodically assess whether or not our variable interests in these VIEs, based on qualitative analysis, provide us with a controlling interest in the VIE. The analysis includes an assessment of the characteristics of the VIE. We do not have a controlling financial interest in the VIE, which would require consolidation of the VIE, as we do not have the following characteristics: (1) the power to direct the activities that most significantly impact the VIE’s economic performance; and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||
Securities | ||
Debt securities that First Commonwealth has the positive intent and ability to hold to maturity are classified as securities held to maturity and are reported at amortized cost adjusted for amortization of premium and accretion of discount on a level yield basis. Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are to be classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as securities available for sale and are reported at fair value, with unrealized gains and losses that are not related to impairment excluded from earnings and reported as a component of other comprehensive income, which is included in shareholders’ equity, net of deferred taxes. | ||
First Commonwealth has securities classified as available for sale and does not engage in trading activities. First Commonwealth utilizes the specific identification method to determine the net gain or loss on debt securities and the average cost method to determine the net gain or loss on the equity securities. | ||
First Commonwealth conducts a comprehensive review of the investment portfolio on a quarterly basis to determine whether other-than-temporary impairment has occurred. Issuer-specific securities whose market values have fallen below their book values are initially selected for more in-depth analysis based on the percentage decline in value and duration of the decline. Issuer-specific securities include obligations of U.S. Government agencies and sponsored enterprises, single issue trust preferred securities, corporate debentures and obligations of states and political subdivisions. Further analysis of these securities includes a review of research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, impact of interest rate changes and any other relevant information pertaining to the affected security. Pooled trust preferred collateralized debt obligations are measured by evaluating all relevant credit and structural aspects, determining appropriate performance assumptions and performing a discounted cash flow analysis. This evaluation includes detailed credit, performance and structural evaluations for each piece of collateral. Other factors in the pooled trust preferred collateralized debt obligations valuation include terms of the structure, the cash flow waterfall (for both interest and principal), the over collateralization and interest coverage tests and events of default/liquidation. Based on this review, a determination is made on a case by case basis as to a potential impairment. Declines in the fair value of individual securities below their cost that are not expected to be recovered will result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as impairment losses. | ||
Loans | ||
Loans are carried at the principal amount outstanding. Interest is accrued as earned. Loans held for sale are carried at the lower of cost or fair value determined on an individual basis. | ||
First Commonwealth considers a loan to be past due and still accruing interest when payment of interest or principal is contractually past due but the loan is both well secured and in the process of collection. For installment, mortgage, term and other loans with amortizing payments that are scheduled monthly, 90 days past due is reached when four monthly payments are due and unpaid. For demand, time and other multi-payment obligations with payments scheduled other than monthly, delinquency status is calculated using number of days instead of number of payments. Revolving credit loans, including personal credit lines and home equity lines, are considered to be 90 days past due when the borrower has not made the minimum payment for four monthly cycles. | ||
A loan is placed in nonaccrual status when, based on current information and events, it is probable that First Commonwealth will be unable to fully collect principal or interest due according to the contractual terms of the loan. A loan is also placed in nonaccrual status when, based on regulatory definitions, the loan is maintained on a “cash basis” due to the weakened financial condition of the borrower. When a determination is made to place a loan in nonaccrual status, all accrued and unpaid interest is reversed. Nonaccrual loans are restored to accrual status when, based on a sustained period of repayment by the borrower in accordance with the contractual terms of the loan, First Commonwealth expects repayment of the remaining contractual principal and interest or when the loan otherwise becomes well-secured and in the process of collection. | ||
First Commonwealth considers a loan to be a troubled debt restructured loan when the loan terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources. | ||
A loan is considered to be impaired when, based on current information and events, it is probable that First Commonwealth will be unable to collect principal or interest that is due in accordance with contractual terms of the loan. Impaired loans include nonaccrual loans and troubled debt restructured loans. Loan impairment is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. | ||
For loans other than those that First Commonwealth expects repayment through liquidation of the collateral, when the remaining recorded investment in the impaired loan is less than or equal to the present value of the expected cash flows, income is applied as a reduction to loan principal rather than interest income. | ||
Loans deemed uncollectible are charged off through the allowance for credit losses. Factors considered in assessing ultimate collectibility include past due status, financial condition of the borrower, collateral values and debt covenants including secondary sources of repayment by guarantors. Payments received on previously charged off loans are recorded as recoveries in the allowance for credit losses. | ||
Loan Fees | ||
Loan origination and commitment fees, net of associated direct costs, are deferred and the net amount is amortized as an adjustment to the related loan yield on the interest method, generally over the contractual life of the related loans or commitments. | ||
Other Real Estate Owned | ||
Real estate, other than bank premises, is recorded at fair value less estimated selling costs at the time of acquisition. After that time, other real estate is carried at the lower of cost or fair value less estimated costs to sell. Fair value is determined based on an independent appraisal. Expenses related to holding the property and rental income earned on the property are generally reflected in earnings in the current period. Depreciation is not recorded on the other real estate owned properties. | ||
Allowance for Credit Losses | ||
First Commonwealth maintains an allowance for credit losses at a level deemed sufficient to absorb losses that are inherent in the loan portfolio. First Commonwealth’s management determines and reviews with the Board of Directors the adequacy of the allowance on a quarterly basis to ensure that the provision for credit losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. First Commonwealth’s methodology for assessing the appropriateness of the allowance for credit losses consists of several key elements. These elements include an assessment of individual problem loans, delinquency and loss experience trends, and other relevant factors, all of which may be susceptible to significant changes. | ||
The major loan classifications used in the allowance for credit losses calculation include pass, other assets especially mentioned (“OAEM”), substandard and doubtful. Additional information related to these credit quality categories is provided in Note 10, "Loans and Allowance for Credit Losses." | ||
First Commonwealth consistently applies the following comprehensive methodology and procedure for determining the allowance for credit losses. | ||
All impaired credits in excess of $100 thousand are individually reviewed quarterly. A specific reserve is established for impaired loans that is equal to the total amount of probable unconfirmed losses for the impaired loans that are reviewed. Based on this reserve as a percentage of reviewed loan balances, a reserve is also established for the impaired loan balances that are not individually reviewed. | ||
The allowance calculation uses historical charge-off trends to estimate probable unconfirmed losses for each loan category. A multiplier known as the emergence factor is applied to the historical loss rates for non-criticized loans. The emergence factor is calculated by loan category and represents the average time period from when a loan was given a non-pass rating until the bank experiences a charge-off against the loan.. Before applying the adjusted historical loss experience percentages, loan balances are reduced by the portion of the loan balances which are subject to guarantee by a government agency. | ||
An additional component of the allowance is determined by management based on a qualitative analysis of certain factors related to portfolio risks and economic conditions. Factors considered by management include employment trends, macroeconomic trends, commercial real estate trends and the overall lending environment. Portfolio risks include unusual changes or recent trends in specific portfolios such as unexpected changes in the trends or levels of delinquency. No matter how detailed an analysis of potential credit losses is performed, these estimates are inherently not precise. Management must make estimates using assumptions and information that is often subjective and changes rapidly. | ||
Allowance for Off-Balance Sheet Credit Exposures | ||
First Commonwealth maintains an allowance for off-balance sheet credit exposure at a level deemed sufficient to absorb losses that are inherent to off-balance sheet credit risk. Management determines the adequacy of the allowance on a quarterly basis, charging the provision against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. The Company’s methodology for assessing the appropriateness of the allowance for off-balance sheet credit exposure consists of analysis of historical usage trends as well as loss history and probability of default rates related to the off-balance sheet category. The calculation begins with historical usage trends related to lines of credit as well as letters of credit and then utilizes those figures to determine the probable usage of available lines. These values are then adjusted by a determined probability of default as well as a loss given default. This amount is adjusted quarterly and reported as part of other operating expenses on the Consolidated Statements of Income. | ||
Bank Owned Life Insurance | ||
First Commonwealth and the banks that First Commonwealth has acquired have purchased insurance on the lives of certain groups of employees. The policies accumulate asset values to meet future liabilities, including the payment of employee benefits such as health care. Increases in the cash surrender value are recorded as non-interest income in the Consolidated Statements of Income. Under some of these policies, the beneficiaries receive a portion of the death benefit. The net present value of the future death benefits scheduled to be paid to the beneficiaries was $3.9 million and $3.6 million as of December 31, 2014 and 2013, respectively, and is reflected in "Other Liabilities" on the Consolidated Statements of Financial Condition. | ||
Premises and Equipment | ||
Premises and equipment are carried at cost less accumulated depreciation on First Commonwealth’s Consolidated Statements of Financial Condition. Depreciation is computed on the straight-line and accelerated methods over the estimated useful life of the asset. A straight-line depreciation method was used for substantially all furniture and equipment. The straight-line depreciation method was used for buildings and improvements. Charges for maintenance and repairs are expensed as incurred. Leasehold improvements are expensed over the term of the lease or the estimated useful life of the improvement, whichever is shorter. | ||
Software costs are amortized on a straight-line basis over a period not to exceed seven years. | ||
Goodwill | ||
Intangible assets resulting from acquisitions under the purchase method of accounting consist of goodwill and other intangible assets (see “Other Intangible Assets” section below). Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. First Commonwealth reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if our fair value has fallen below carrying value. | ||
Other Intangible Assets | ||
Other intangible assets consist of core deposits and customer lists obtained through acquisitions. Core deposit intangibles are amortized over their estimated lives using the present value of the benefit of the core deposits and straight-line methods of amortization. Customer list intangibles are amortized over the expected lives using expected cash flows based on retention of the customer base. These intangibles are evaluated for impairment on an annual basis and when events or changes in circumstances indicate that the carrying amount may not be recoverable. | ||
Accounting for the Impairment of Long-Lived Assets | ||
First Commonwealth reviews long-lived assets, such as premises and equipment and intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These changes in circumstances may include a significant decrease in the market value of an asset or the extent or manner in which an asset is used. If there is an indication that the carrying amount of an asset may not be recoverable, future undiscounted cash flows expected to result from the use of the asset are estimated. If the sum of the expected cash flows is less than the carrying value of the asset, a loss is recognized for the difference between the carrying value and fair value of the asset. Long-lived assets classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. Depreciation or amortization is discontinued on long-lived assets classified as held for sale. | ||
Income Taxes | ||
First Commonwealth records taxes in accordance with the asset and liability method of FASB ASC Topic 740, “Income Taxes,” whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases given the provisions of the enacted tax laws. Deferred tax assets are reduced, if necessary, by the amount of such benefits that are more likely than not expected to be realized based upon available evidence. In accordance with FASB ASC Topic 740, interest or penalties incurred for taxes will be recorded as a component of noninterest expense. | ||
Comprehensive Income Disclosures | ||
“Other Comprehensive Income” (comprehensive income, excluding net income) includes the after-tax effect of changes in unrealized holding gains and losses on available-for-sale securities, changes in the funded status of defined benefit postretirement plans and changes in the fair value of the effective portion of cash flow hedges. Comprehensive income is reported in the accompanying Consolidated Statements of Comprehensive Income, net of tax. | ||
Cash and Cash Equivalents | ||
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and interest-bearing bank deposits. Generally, federal funds are sold for one-day periods. | ||
Employee Stock Ownership Plan | ||
Accounting treatment for First Commonwealth’s Employee Stock Ownership Plan (“ESOP”) described in Note 22 “Unearned ESOP Shares” follows FASB ASC Topic 718, “Compensation—Stock Compensation” for ESOP shares acquired after December 31, 1992 (“new shares”). First Commonwealth’s ESOP borrowed funds were guaranteed by First Commonwealth. The ESOP shares purchased subject to the debt guaranteed by First Commonwealth were recorded as a reduction of common shareholders’ equity by recording unearned ESOP shares. Shares were committed to be released to the ESOP Trust for allocation to plan participants through loan payments. As the shares were committed to be released, the unearned ESOP shares account was credited for the average cost of the shares collateralizing the ESOP borrowed funds. Compensation cost was recognized for these shares in accordance with the provisions of FASB ASC Topic 718 and was based upon the fair market value of the shares that were committed to be released. Additional paid-in capital was charged or credited for the difference between the fair value of the shares committed to be released and the cost of those shares to the ESOP. The borrowed funds related to the unearned ESOP shares were paid off in November 2012. | ||
Dividends on unallocated ESOP shares were used for debt service and are reported as a reduction of debt and accrued interest payable. Dividends on allocated ESOP shares were charged to retained earnings and allocated or paid to the plan participants. The average number of common shares outstanding used in calculating earnings per share excludes all unallocated ESOP shares. | ||
Derivatives and Hedging Activities | ||
First Commonwealth accounts for derivative instruments and hedging activities in accordance with FASB ASC Topic 815, “Derivatives and Hedging.” All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities, and appropriate documentation is maintained to support the final determination. First Commonwealth recognizes all derivatives as either assets or liabilities on the Consolidated Statements of Financial Condition and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in OCI. When the cash flows associated with the hedged item are realized, the gain or loss included in OCI is recognized in the Consolidated Statement of Income. | ||
When First Commonwealth purchases a portion of a commercial loan that has an existing interest rate swap, it enters a Risk Participation Agreement with the counterparty and assumes the credit risk of the loan customer related to the swap. Any fee paid to First Commonwealth as a result of the risk participation agreement is offset by credit risk of the counterparties and is recognized in the income statement. Credit risk on the risk participation agreements is determined after considering the risk rating, probability of default and loss given default of the counterparties. | ||
Management periodically reviews contracts from various functional areas of First Commonwealth to identify potential derivatives embedded within selected contracts. As of December 31, 2014, First Commonwealth has interest derivative positions that are not designated as hedging instruments. See Note 7, “Derivatives,” for a description of these instruments. | ||
Earnings Per Common Share | ||
Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period less any unallocated ESOP shares. | ||
Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For all periods presented, the dilutive effect on average shares outstanding is the result of compensatory stock options outstanding and unvested restricted stock grants. | ||
Fair Value Measurements | ||
In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” First Commonwealth groups financial assets and financial liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | ||
• | Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 1 securities include equity holdings comprised of publicly traded bank stocks which were priced using quoted market prices. | |
• | Level 2—Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained for identical or comparable assets or liabilities from alternative pricing sources with reasonable levels of price transparency. Level 2 securities include U.S. Government securities issued by Agencies and Sponsored Enterprises, Obligations of States and Political Subdivisions, certain corporate securities, FHLB stock, interest rate derivatives that include interest rate swaps, risk participation agreements and foreign currency contracts, certain other real estate owned and certain impaired loans. | |
• | Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. If the inputs used to provide the evaluation are unobservable and/or there is very little, if any, market activity for the security or similar securities, the securities would be considered Level 3 securities. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The assets included in Level 3 are select Obligations of States and Political Subdivisions, corporate securities, pooled trust preferred collateralized debt obligations, nonmarketable equity investments, certain other real estate owned, certain impaired loans and loans held for sale. | |
In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon pricing models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. See Note 19 “Fair Values of Assets and Liabilities” for additional information. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements |
In January 2014, the FASB issued ASU 2014-01, "Investments - Equity Method and Joint Ventures (Topic 323)," which permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The proportional amortization method allows an entity to amortize the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). This amendment is effective for interim and annual periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. | |
In January 2014, the FASB issued ASU 2014-04, "Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40)." This amendment clarifies that an in-substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of property upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction are required. This amendment is effective for annual periods beginning after December 15, 2014 and for interim periods within annual periods beginning after December 15, 2015. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. | |
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360)." This amendment changes the reporting requirements for discontinued operations. A disposal of a component of an entity or group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift resulting in a major effect on the entity's operations and financial results when any of the following occurs: (1) the component or group of components of an entity meets the criteria to be classified as held for sale, (2) the component or group of components of an entity is disposed of by sale, or (3) the component or group of components of an entity is disposed of other than by sale. If one of these criteria are met, the entity will present the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections of the statement of financial position for each comparative period along with additional footnote disclosure. This amendment is effective for annual periods beginning on or after December 15, 2014 and interim periods within annual periods beginning on or after December 15, 2015. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. | |
In May 2014, the FASB issued Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early adoption is not permitted. First Commonwealth is evaluating the impact of the adoption of this ASU on financial condition and results of operation.. | |
In June 2014, the FASB issued ASU 2014-11, "Transfers and Servicing (Topic 860)," which requires two accounting changes. One changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting and the other requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty in regards to repurchase financing arrangements, which will result in secured borrowing accounting for the repurchase agreement. The ASU requires disclosure for certain transactions comprising a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to economic return. The amendment also requires disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. This amendment will be effective for public entities for the first interim or annual period beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. | |
In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718)," which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. This amendment is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015 with earlier adoption permitted. 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 2014, the FASB issued ASU No. 2014-14, "Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure." These amendments address the diversity in practice regarding the classification and measurement of foreclosed loans which were part of a government-sponsored loan guarantee program (e.g., HUD, FHA, VA). The ASU outlines certain criteria that, if met, the loan (residential or commercial) should be derecognized and a separate other receivable should be recorded upon foreclosure at the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This ASU will be effective for annual reporting periods beginning after December 15, 2014, including interim periods within that reporting period. Early adoption is permitted, provided the entity has adopted ASU 2014-04. The ASU should be adopted either prospectively or on a modified retrospective basis. 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 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern (Topic 205-40)," which requires management to evaluate, for each annual and interim period, whether conditions or events, considered in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. When management identifies conditions or events that raise substantial doubt regarding an entity's ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. Certain footnote disclosures are required, the nature of which depends on if substantial doubt is alleviated as a result of consideration of management's plan. This amendment is effective for the annual period ending after December 15, 2016 and for annual and interim periods thereafter. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. |
Supplemental_Comprehensive_Inc
Supplemental Comprehensive Income Disclosures | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Supplemental Comprehensive Income Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||
Supplemental Comprehensive Income Disclosures | Supplemental Comprehensive Income Disclosures | |||||||||||||||||||||||||||||||||||
The following table identifies the related tax effects allocated to each component of other comprehensive income in the Consolidated Statements of Comprehensive Income as of December 31. Reclassification adjustments related to securities available for sale are included in the "Net securities gains" line in the Consolidated Statements of Income and reclassification adjustments related to losses on derivatives are included in the "Other operating expenses" line in the Condensed Consolidated Statements of Income. | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Pretax Amount | Tax (Expense) Benefit | Net of Tax Amount | Pretax Amount | Tax (Expense) Benefit | Net of Tax Amount | Pretax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on securities: | ||||||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 25,153 | $ | (8,803 | ) | $ | 16,350 | $ | (34,975 | ) | $ | 12,233 | $ | (22,742 | ) | $ | (661 | ) | $ | 238 | $ | (423 | ) | |||||||||||||
Reclassification adjustment for (gains) losses on securities included in net income | (550 | ) | 193 | (357 | ) | 1,158 | (405 | ) | 753 | (192 | ) | 67 | (125 | ) | ||||||||||||||||||||||
Total unrealized gains (losses) on securities | 24,603 | (8,610 | ) | 15,993 | (33,817 | ) | 11,828 | (21,989 | ) | (853 | ) | 305 | (548 | ) | ||||||||||||||||||||||
Unrealized gains (losses) on derivatives: | ||||||||||||||||||||||||||||||||||||
Unrealized holding gains on derivatives arising during the period | 472 | (165 | ) | 307 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Reclassification adjustment for gains on derivatives included in net income | (10 | ) | 3 | (7 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Total unrealized gains on derivatives | 462 | (162 | ) | 300 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Unrealized (losses) gains for postretirement obligations: | ||||||||||||||||||||||||||||||||||||
Transition obligation | — | — | — | — | — | — | 2 | (1 | ) | 1 | ||||||||||||||||||||||||||
Net (loss) gain | (313 | ) | 109 | (204 | ) | 219 | (77 | ) | 142 | (300 | ) | 105 | (195 | ) | ||||||||||||||||||||||
Total unrealized (losses) gains for postretirement obligations | (313 | ) | 109 | (204 | ) | 219 | (77 | ) | 142 | (298 | ) | 104 | (194 | ) | ||||||||||||||||||||||
Total other comprehensive income (loss) | $ | 24,752 | $ | (8,663 | ) | $ | 16,089 | $ | (33,598 | ) | $ | 11,751 | $ | (21,847 | ) | $ | (1,151 | ) | $ | 409 | $ | (742 | ) | |||||||||||||
The following table details the change in components of OCI for the year-ended December 31: | ||||||||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||||||
Securities Available for Sale | Derivatives | Post-Retirement Obligation | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Balance at January 1 | $ | (20,868 | ) | $ | — | $ | 280 | $ | (20,588 | ) | ||||||||||||||||||||||||||
Other comprehensive income before reclassification adjustment | 16,350 | 307 | 16,657 | |||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (357 | ) | (7 | ) | (364 | ) | ||||||||||||||||||||||||||||||
Transition obligation | — | — | ||||||||||||||||||||||||||||||||||
Net gain | (204 | ) | (204 | ) | ||||||||||||||||||||||||||||||||
Net other comprehensive income during the period | 15,993 | 300 | (204 | ) | 16,089 | |||||||||||||||||||||||||||||||
Balance at December 31 | $ | (4,875 | ) | $ | 300 | $ | 76 | $ | (4,499 | ) | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Securities Available for Sale | Derivatives | Post-Retirement Obligation | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 1,121 | $ | — | $ | 138 | $ | 1,259 | ||||||||||||||||||||||||||||
Other comprehensive income before reclassification adjustment | (22,742 | ) | — | (22,742 | ) | |||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 753 | — | 753 | |||||||||||||||||||||||||||||||||
Transition obligation | — | — | ||||||||||||||||||||||||||||||||||
Net gain | 142 | 142 | ||||||||||||||||||||||||||||||||||
Net other comprehensive income during the period | (21,989 | ) | — | 142 | (21,847 | ) | ||||||||||||||||||||||||||||||
Balance at December 31 | $ | (20,868 | ) | $ | — | $ | 280 | $ | (20,588 | ) | ||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Securities Available for Sale | Derivatives | Post-Retirement Obligation | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 1,669 | $ | — | $ | 332 | $ | 2,001 | ||||||||||||||||||||||||||||
Other comprehensive income before reclassification adjustment | (423 | ) | — | (423 | ) | |||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (125 | ) | — | (125 | ) | |||||||||||||||||||||||||||||||
Transition obligation | 1 | 1 | ||||||||||||||||||||||||||||||||||
Net gain | (195 | ) | (195 | ) | ||||||||||||||||||||||||||||||||
Net other comprehensive income during the period | (548 | ) | — | (194 | ) | (742 | ) | |||||||||||||||||||||||||||||
Balance at December 31 | $ | 1,121 | $ | — | $ | 138 | $ | 1,259 | ||||||||||||||||||||||||||||
Supplemental_Cash_Flow_Disclos
Supplemental Cash Flow Disclosures | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Supplemental Cash Flow Disclosures | Supplemental Cash Flow Disclosures | |||||||||||
The following table presents information related to cash paid during the year for interest and income taxes as well as detail on non-cash investing and financing activities for the years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 18,943 | $ | 23,022 | $ | 31,597 | ||||||
Income taxes | 10,700 | 3,080 | 11,641 | |||||||||
Non-cash investing and financing activities: | ||||||||||||
ESOP loan reductions | $ | — | $ | — | $ | 1,600 | ||||||
Loans transferred to other real estate owned and repossessed assets | 5,061 | 12,326 | 4,979 | |||||||||
Other real estate owned sold and settled out of period | — | 348 | — | |||||||||
Fair value of loans transferred from held to maturity to available for sale | 3,035 | 20,135 | — | |||||||||
Gross increase (decrease) in market value adjustment to securities available for sale | 24,601 | (33,792 | ) | (874 | ) | |||||||
Unsettled treasury stock repurchases | — | — | 1,222 | |||||||||
Contribution of premises | 682 | — | — | |||||||||
Earnings_per_Share
Earnings per Share | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share | ||||||||||||||||||||||||||||||||
The following table summarizes the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the years ending December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Weighted average common shares issued | 105,563,455 | 105,563,455 | 105,563,455 | ||||||||||||||||||||||||||||||
Average treasury shares | (12,294,217 | ) | (8,363,083 | ) | (1,456,953 | ) | |||||||||||||||||||||||||||
Averaged unearned ESOP shares | — | — | (38,393 | ) | |||||||||||||||||||||||||||||
Average unearned nonvested shares | (154,584 | ) | (172,215 | ) | (182,713 | ) | |||||||||||||||||||||||||||
Weighted average common shares and common stock equivalents used to calculate basic earnings per share | 93,114,654 | 97,028,157 | 103,885,396 | ||||||||||||||||||||||||||||||
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share | — | 1,675 | 171 | ||||||||||||||||||||||||||||||
Additional common stock equivalents (stock options) used to calculate diluted earnings per share | — | — | 96 | ||||||||||||||||||||||||||||||
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share | 93,114,654 | 97,029,832 | 103,885,663 | ||||||||||||||||||||||||||||||
The following table shows the number of shares and the price per share related to common stock equivalents that were not included in the computation of diluted earnings per share for the years ended December 31, because to do so would have been anti-dilutive. | |||||||||||||||||||||||||||||||||
12/31/14 | 12/31/13 | 12/31/12 | |||||||||||||||||||||||||||||||
Price Range | Price Range | Price Range | |||||||||||||||||||||||||||||||
Shares | From | To | Shares | From | To | Shares | From | To | |||||||||||||||||||||||||
Stock Options | 15,000 | $ | 14.55 | $ | 14.55 | 27,000 | $ | 14.41 | $ | 14.55 | 268,630 | $ | 6.9 | $ | 14.55 | ||||||||||||||||||
Restricted Stock | 106,977 | 5.26 | 9.26 | 81,770 | 4.41 | 7.57 | 163,509 | 5.26 | 6.82 | ||||||||||||||||||||||||
Cash_and_Due_from_Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Due from Banks [Abstract] | |
Cash and Due from Banks | Cash and Due from Banks |
Regulations of the Board of Governors of the Federal Reserve System impose uniform reserve requirements on all depository institutions with transaction accounts, such as checking accounts and NOW accounts. Reserves are maintained in the form of vault cash or balances held with the Federal Reserve Bank. First Commonwealth Bank maintained average balances of $4.9 million during 2014 and $2.9 million during 2013 with the Federal Reserve Bank. |
Derivatives
Derivatives | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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 thirteen 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 three risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are the lead bank. The risk participation agreement provides credit protection to us should the borrower fail to perform on its interest rate derivative contract with us. | ||||||||||||
First Commonwealth is also party to interest rate caps that are not designated as hedging instruments. These derivatives relate to contracts that First Commonwealth enters into with loan customers providing a maximum interest rate on their variable rate loan. At the same time the interest rate cap is entered into with the customer, First Commonwealth enters into an offsetting interest rate cap with another financial institution. The notional amount and maximum interest rate on both interest cap contracts are identical. | ||||||||||||
The fee received, less the estimate of the loss for the credit exposure, was recognized in earnings at the time of the transaction. | ||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||
During the third quarter of 2014, the Company entered into two interest rate swap contracts which were designated as cash flow hedges. Both of the interest rate swaps have a notional amount of $50.0 million with a maturity of three years on one and four years on the other. 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 $100.0 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 Statement of Income. For the year ended December 31, 2014, interest income was increased by $0.3 million as a result of these interest rate swaps. Changes in the fair value of the effective portion of cash flow hedges are reported in OCI. When the cash flows associated with the hedged item are realized, the gain or loss included in OCI is recognized in Interest and fees on loans, the same line item in the Condensed Consolidated Statement of Income as the income on the hedged items. The cash flow hedges were highly effective at December 31, 2014, and changes in the fair value attributed to hedge ineffectiveness were not material. There were no cash flow hedges at December 31, 2013. | ||||||||||||
The following table depicts the credit value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of risk participation agreements participated to other banks at December 31: | ||||||||||||
2014 | 2013 | |||||||||||
(dollars in thousands) | ||||||||||||
Derivatives not Designated as Hedging Instruments | ||||||||||||
Credit value adjustment | $ | (268 | ) | $ | 77 | |||||||
Notional Amount: | ||||||||||||
Interest rate derivatives | 273,388 | 274,718 | ||||||||||
Interest rate caps | 6,656 | 7,500 | ||||||||||
Risk participation agreements | 113,624 | 82,197 | ||||||||||
Sold credit protection on risk participation agreements | (17,296 | ) | (19,161 | ) | ||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||
Fair value adjustment | 472 | — | ||||||||||
Notional Amount - Interest rate derivatives | 100,000 | — | ||||||||||
The table below presents the amount representing the change in the fair value of derivative assets and derivative liabilities attributable to credit risk included in “Other income” on the Consolidated Statements of Income for the years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
Non-hedging interest rate derivatives: | ||||||||||||
(Decrease) increase in other income | $ | (345 | ) | $ | 1,428 | $ | 755 | |||||
Hedging interest rate derivatives: | ||||||||||||
Increase in interest income | 330 | — | — | |||||||||
Increase in other income | 10 | — | — | |||||||||
The fair value of our derivatives is included in a table in Note 19, “Fair Values of Assets and Liabilities,” in the line items “Other assets” and “Other liabilities.” |
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities | |||||||||||||||||||||||||||||||
Below is an analysis of the amortized cost and fair values of securities available for sale at December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cost | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||||||
Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Obligations of U.S. Government Agencies: | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | $ | 23,344 | $ | 2,595 | $ | (3 | ) | $ | 25,936 | $ | 22,639 | $ | 2,624 | $ | (59 | ) | $ | 25,204 | ||||||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | 947,635 | 13,076 | (9,830 | ) | 950,881 | 1,009,519 | 12,531 | (27,163 | ) | 994,887 | ||||||||||||||||||||||
Mortgage-Backed Securities – Commercial | 72 | 2 | — | 74 | 104 | 1 | — | 105 | ||||||||||||||||||||||||
Other Government-Sponsored Enterprises | 269,181 | 4 | (1,308 | ) | 267,877 | 267,971 | 81 | (1,927 | ) | 266,125 | ||||||||||||||||||||||
Obligations of States and Political Subdivisions | 27,058 | 362 | (43 | ) | 27,377 | 80 | — | — | 80 | |||||||||||||||||||||||
Corporate Securities | 6,682 | 573 | — | 7,255 | 6,693 | 328 | — | 7,021 | ||||||||||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | 41,926 | 309 | (13,236 | ) | 28,999 | 42,040 | — | (18,517 | ) | 23,523 | ||||||||||||||||||||||
Total Debt Securities | 1,315,898 | 16,921 | (24,420 | ) | 1,308,399 | 1,349,046 | 15,565 | (47,666 | ) | 1,316,945 | ||||||||||||||||||||||
Equities | 1,420 | — | — | 1,420 | 1,420 | — | — | 1,420 | ||||||||||||||||||||||||
Total Securities Available for Sale | $ | 1,317,318 | $ | 16,921 | $ | (24,420 | ) | $ | 1,309,819 | $ | 1,350,466 | $ | 15,565 | $ | (47,666 | ) | $ | 1,318,365 | ||||||||||||||
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. | ||||||||||||||||||||||||||||||||
During 2014, a gain of $0.5 million was recognized as the result of a recovery on a trust preferred security for which a $1.3 million loss was recognized in 2013 due to the early redemption of a pooled trust preferred security with a book value of $6.6 million. Senior note holders elected to liquidate all assets of the trust, resulting in losses for the mezzanine notes owned by First Commonwealth. The gain recognized in 2014 was a result of additional proceeds distributed as part of the final liquidation of the trust. | ||||||||||||||||||||||||||||||||
In 2012, $5.1 million in single issue trust preferred securities and $0.2 million in pooled trust preferred securities were called by their issuers, providing security gains of $0.2 million. | ||||||||||||||||||||||||||||||||
The amortized cost and fair value of debt securities at December 31, 2014, by contractual maturity, are shown below: | ||||||||||||||||||||||||||||||||
Amortized | Estimated | |||||||||||||||||||||||||||||||
Cost | Fair Value | |||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Due within 1 year | $ | 3,000 | $ | 2,998 | ||||||||||||||||||||||||||||
Due after 1 but within 5 years | 266,181 | 264,879 | ||||||||||||||||||||||||||||||
Due after 5 but within 10 years | 21,849 | 22,104 | ||||||||||||||||||||||||||||||
Due after 10 years | 53,817 | 41,527 | ||||||||||||||||||||||||||||||
344,847 | 331,508 | |||||||||||||||||||||||||||||||
Mortgage-Backed Securities (a) | 971,051 | 976,891 | ||||||||||||||||||||||||||||||
Total Debt Securities | $ | 1,315,898 | $ | 1,308,399 | ||||||||||||||||||||||||||||
(a) | Mortgage Backed Securities include an amortized cost of $23.3 million and a fair value of $25.9 million for Obligations of U.S. Government agencies issued by Ginnie Mae and Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac, which had an amortized cost of $947.7 million and a fair value of $951.0 million. | |||||||||||||||||||||||||||||||
Proceeds from sales, gross gains (losses) realized on sales, maturities and other-than-temporary impairment charges related to securities available for sale were as follows for the years ended December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Proceeds from sales | $ | 132,868 | $ | 671 | $ | — | ||||||||||||||||||||||||||
Gross (losses) gains realized: | ||||||||||||||||||||||||||||||||
Sales Transactions: | ||||||||||||||||||||||||||||||||
Gross gains | $ | 291 | $ | 233 | $ | — | ||||||||||||||||||||||||||
Gross losses | (243 | ) | — | — | ||||||||||||||||||||||||||||
48 | 233 | — | ||||||||||||||||||||||||||||||
Maturities and impairment | ||||||||||||||||||||||||||||||||
Gross gains | 502 | 4 | 192 | |||||||||||||||||||||||||||||
Gross losses | — | (1,395 | ) | — | ||||||||||||||||||||||||||||
Other-than-temporary impairment | — | — | — | |||||||||||||||||||||||||||||
502 | (1,391 | ) | 192 | |||||||||||||||||||||||||||||
Net gains and impairment | $ | 550 | $ | (1,158 | ) | $ | 192 | |||||||||||||||||||||||||
Securities available for sale with an approximate fair value of $563.2 million and $594.9 million were pledged as of December 31, 2014 and 2013, respectively, to secure public deposits and for other purposes required or permitted by law. |
Impairment_of_Investment_Secur
Impairment of Investment Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Impairment of Investment Securities Disclosure [Abstract] | |||||||||||||||||||||||||
Impairment of Investment Securities | Impairment of Investment Securities | ||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
As required by FASB ASC Topic 320, “Investments—Debt and Equity Securities,” credit related other-than-temporary impairment on debt securities is recognized in earnings while non-credit related other-than-temporary impairment on debt securities not expected to be sold is recognized in other comprehensive income (“OCI”). During the years ended December 31, 2014, 2013 and 2012, no other-than-temporary impairment charges were recognized. | |||||||||||||||||||||||||
First Commonwealth utilizes the specific identification method to determine the net gain or loss on debt securities and the average cost method to determine the net gain or loss on equity securities. | |||||||||||||||||||||||||
We review our investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and whether we are more likely than not to sell the security. We evaluate whether we are more likely than not to sell debt securities based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy, tax position and interest rate risk position. In addition, the risk of future other-than-temporary impairment may be influenced by additional bank failures, weakness in the U.S. economy, changes in real estate values and additional interest deferrals in our pooled trust preferred collateralized debt obligations. Our pooled trust preferred collateralized debt obligations are beneficial interests in securitized financial assets within the scope of FASB ASC Topic 325, “Investments—Other,” and are therefore evaluated for other-than-temporary impairment using management’s best estimate of future cash flows. If these estimated cash flows determine it is probable that an adverse change in cash flows has occurred, then other-than-temporary impairment would be recognized in accordance with FASB ASC Topic 320. There is a risk that First Commonwealth will record other-than-temporary impairment charges in the future. See Note 19, “Fair Values of Assets and Liabilities,” for additional information. | |||||||||||||||||||||||||
The following table presents the gross unrealized losses and estimated fair values at December 31, 2014 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 | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Obligations of U.S. Government Agencies: | |||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | $ | 2,318 | $ | (3 | ) | $ | — | $ | — | $ | 2,318 | $ | (3 | ) | |||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | |||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | 111,646 | (419 | ) | 368,706 | (9,411 | ) | 480,352 | (9,830 | ) | ||||||||||||||||
Other Government-Sponsored Enterprises | 112,473 | (229 | ) | 130,401 | (1,079 | ) | 242,874 | (1,308 | ) | ||||||||||||||||
Obligations of States and Political Subdivisions | 3,146 | (43 | ) | — | — | 3,146 | (43 | ) | |||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | — | — | 24,356 | (13,236 | ) | 24,356 | (13,236 | ) | |||||||||||||||||
Total Securities Available for Sale | $ | 229,583 | $ | (694 | ) | $ | 523,463 | $ | (23,726 | ) | $ | 753,046 | $ | (24,420 | ) | ||||||||||
At December 31, 2014, pooled trust preferred collateralized debt obligations accounted for 54% of unrealized losses due to changes in interest rates and the illiquid market for this type of investment. Fixed income securities issued by U.S. Government-sponsored enterprises comprised 46% of total unrealized losses due to changes in market interest rates. There were no equity securities in an unrealized loss position at December 31, 2014. | |||||||||||||||||||||||||
The following table presents the gross unrealized losses and estimated fair value at December 31, 2013 for available-for-sale and 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 | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Obligations of U.S. Government Agencies: | |||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | $ | 2,035 | $ | (59 | ) | $ | — | $ | — | $ | 2,035 | $ | (59 | ) | |||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | |||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | 632,231 | (22,844 | ) | 65,324 | (4,319 | ) | 697,555 | (27,163 | ) | ||||||||||||||||
Other Government-Sponsored Enterprises | 183,542 | (1,448 | ) | 24,501 | (479 | ) | 208,043 | (1,927 | ) | ||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | 2,401 | (237 | ) | 21,122 | (18,280 | ) | 23,523 | (18,517 | ) | ||||||||||||||||
Total Securities Available for Sale | $ | 820,209 | $ | (24,588 | ) | $ | 110,947 | $ | (23,078 | ) | $ | 931,156 | $ | (47,666 | ) | ||||||||||
As of December 31, 2014, our corporate securities had an amortized cost and estimated fair value of $6.7 million and $7.3 million, respectively, and were comprised of single issue trust preferred securities issued primarily by money center and large regional banks. At December 31, 2013, these securities had an amortized cost of $6.7 million and estimated fair value of $7.0 million. There were no corporate securities in an unrealized loss position as of December 31, 2014 and 2013. When unrealized losses exist, management reviews each of the issuer’s asset quality, earnings trend and capital position, to determine whether issues in an unrealized loss position were other-than-temporarily impaired. All interest payments on the corporate securities are being made as contractually required. | |||||||||||||||||||||||||
As of December 31, 2014, the book value of our pooled trust preferred collateralized debt obligations totaled $41.9 million with an estimated fair value of $29.0 million, which includes securities comprised of 279 banks and other financial institutions. All of our pooled securities are mezzanine tranches, four of which have no senior class remaining in the issue. The credit ratings on all of the issues are below investment grade. At the time of initial issue, the subordinated tranches ranged in size from approximately 7% to 35% of the total principal amount of the respective securities and no more than 5% of any pooled security consisted of a security issued by any one institution. As of December 31, 2014, after taking into account management’s best estimates of future interest deferrals and defaults, five of our securities had no excess subordination in the tranches we own and five of our securities had excess subordination which ranged from 7% to 55% of the current performing collateral. | |||||||||||||||||||||||||
The following table provides additional information related to our pooled trust preferred collateralized debt obligations as of December 31, 2014: | |||||||||||||||||||||||||
Deal | Class | Book | Estimated Fair | Unrealized | Moody’s/ | Number | Deferrals | Excess | |||||||||||||||||
Value | Value | Gain | Fitch | of | and | Subordination | |||||||||||||||||||
(Loss) | Ratings | Banks | Defaults | as a % of | |||||||||||||||||||||
as a % of | Current | ||||||||||||||||||||||||
Current | Performing | ||||||||||||||||||||||||
Collateral | Collateral | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Pre TSL IV | Mezzanine | $ | 1,830 | $ | 1,326 | $ | (504 | ) | B1/BB | 6 | 18.05 | % | 54.84 | % | |||||||||||
Pre TSL V | Mezzanine | 60 | 130 | 70 | C/- | 3 | 100 | 0 | |||||||||||||||||
Pre TSL VII | Mezzanine | 2,779 | 2,987 | 208 | Ca/- | 14 | 49.68 | 0 | |||||||||||||||||
Pre TSL VIII | Mezzanine | 1,970 | 1,305 | (665 | ) | C/C | 29 | 59.12 | 0 | ||||||||||||||||
Pre TSL IX | Mezzanine | 2,340 | 1,442 | (898 | ) | B3/C | 39 | 28.91 | 6.73 | ||||||||||||||||
Pre TSL X | Mezzanine | 1,495 | 1,526 | 31 | Caa1/C | 44 | 31.03 | 0 | |||||||||||||||||
Pre TSL XII | Mezzanine | 5,523 | 3,361 | (2,162 | ) | B3/C | 66 | 26.96 | 0 | ||||||||||||||||
Pre TSL XIII | Mezzanine | 12,464 | 8,455 | (4,009 | ) | Caa1/C | 57 | 19.26 | 30.97 | ||||||||||||||||
Pre TSL XIV | Mezzanine | 13,035 | 8,081 | (4,954 | ) | Caa1/C | 56 | 24.54 | 36.53 | ||||||||||||||||
MMCap I | Mezzanine | 430 | 386 | (44 | ) | Ca/C | 11 | 59.52 | 20.89 | ||||||||||||||||
Total | $ | 41,926 | $ | 28,999 | $ | (12,927 | ) | ||||||||||||||||||
Lack of liquidity in the market for trust preferred collateralized debt obligations, credit rating downgrades 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. | |||||||||||||||||||||||||
On a quarterly basis we evaluate our debt securities for other-than-temporary impairment. For the year ended December 31, 2014, 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. | |||||||||||||||||||||||||
As of December 31, 2014, 2013 and 2012, none of the pooled trust preferred collateralized debt obligations were considered to be nonperforming securities. | |||||||||||||||||||||||||
Additional information related to the discounted cash flow analysis follows: | |||||||||||||||||||||||||
Our pooled trust preferred collateralized debt obligations are measured for other-than-temporary impairment within the scope of FASB ASC Topic 325 by determining whether it is probable that an adverse change in estimated cash flows has occurred. Determining whether there has been an adverse change in estimated cash flows from the cash flows previously projected involves comparing the present value of remaining cash flows previously projected against the present value of the cash flows estimated at December 31, 2014. 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 issuers 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 279 banks comprising the collateral across the various pooled trust preferred securities. Our credit evaluation considers all evidence available to us and includes the nature of the issuer’s business, its years of operating history, corporate structure, loan composition, loan concentrations, deposit mix, asset growth rates, geographic footprint and local economic environment. Our analysis focuses on profitability, return on assets, shareholders’ equity, net interest margin, credit quality ratios, operating efficiency, capital adequacy and liquidity. | ||||||||||||||||||||||||
• | Probability of Default—A probability of default is determined for each bank and is used to calculate the expected impact of future deferrals and defaults on our expected cash flows. Each bank in the collateral pool is assigned a probability of default for each year until maturity. Currently, any bank that is in default is assigned a 100% probability of default and a 0% projected recovery rate. All other banks in the pool are assigned a probability of default based on their unique credit characteristics and market indicators with a 10% projected recovery rate. For the majority of banks currently in deferral we assume the bank continues to defer and will eventually default and therefore a 100% probability of default is assigned. However, for some deferring collateral there is the possibility that they become current on interest or principal payments at some point in the future and in those cases a probability that the deferral will ultimately cure is assigned. The probability of default is updated quarterly. As of December 31, 2014, default probabilities for performing collateral ranged from 0.33% to 75%. | ||||||||||||||||||||||||
Our credit evaluation provides a basis for determining deferral and default probabilities for each underlying piece of collateral. Using the results of the credit evaluation, the next step of the process is to look at pricing of senior debt or credit default swaps for the issuer (or where such information is unavailable, for companies having similar credit profiles as the issuer). The pricing of these market indicators provides the information necessary to determine appropriate default probabilities for each bank. | |||||||||||||||||||||||||
In addition to the above factors, our evaluation of impairment also includes a stress test analysis which provides an estimate of excess subordination for each tranche. We stress the cash flows of each pool by increasing current default assumptions to the level of defaults which results in an adverse change in estimated cash flows. This stressed breakpoint is then used to calculate excess subordination levels for each pooled trust preferred security. The results of the stress test allows management to identify those pools that are at a greater risk for a future break in cash flows so that we can monitor banks in those pools more closely for potential deterioration of credit quality. | |||||||||||||||||||||||||
Our cash flow analysis as of December 31, 2014, indicates that no credit related other-than-temporary impairment has occurred on our pooled trust preferred securities during the year ended December 31, 2014. Based upon the analysis performed by management, it is probable that five of our pooled trust preferred securities are expected to experience contractual principal and interest shortfalls and therefore appropriate other-than-temporary impairment charges were recorded in prior periods. These securities are identified in the table on page 67 with 0% “Excess Subordination as a % of Current Performing Collateral.” For the remaining securities in the table, our analysis as of December 31, 2014 indicates that it is probable that we will collect all contractual principal and interest payments. For four of those securities, PreTSL IX, PreTSL XIII, PreTSL XIV and MMCap I, other-than-temporary impairment charges were recorded in prior periods; however, due to improvement in the expected cash flows of these securities, it is now probable that all contractual payments will be received. | |||||||||||||||||||||||||
During 2008, 2009 and 2010, other-than-temporary impairment charges were recognized on all of our pooled trust preferred securities, except for PreTSL IV. Our cash flow analysis as of December 31, 2014, 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 22% to 141% and will be recognized as an adjustment to yield over the remaining life of these securities. The excess subordination recognized as an adjustment to yield is reflected in the following table as increases in cash flows expected to be collected. | |||||||||||||||||||||||||
The table below provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the years ended December 31: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Balance, beginning (a) | $ | 27,543 | $ | 43,274 | $ | 44,736 | |||||||||||||||||||
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) | (1,297 | ) | (2,375 | ) | (1,462 | ) | |||||||||||||||||||
Reduction for debt securities called during the period | — | (13,356 | ) | — | |||||||||||||||||||||
Balance, ending | $ | 26,246 | $ | 27,543 | $ | 43,274 | |||||||||||||||||||
(a) | The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods. | ||||||||||||||||||||||||
(b) | Represents the increase in cash flows recognized either as principal payments or interest income during the period. | ||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, there was no impairment recognized on equity securities. On a quarterly basis, management evaluates equity securities for other-than-temporary impairment. As part of this evaluation we review the severity and duration of decline in estimated fair value, research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, regulatory filings, impact of interest rate changes and other relevant information. There were no equity securities in an unrealized loss position as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
In the table above, the $13.4 million reduction in cumulative credit losses in 2013 related to debt securities being called is a result of the early redemption of MMComm IX. The Senior note holders of this bond elected to liquidate all assets of the trust, resulting in losses for the mezzanine notes owned by First Commonwealth. Our book value before redemption was $6.6 million and at the time of redemption a loss of $1.3 million was recognized. | |||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||
As a member of the FHLB, First Commonwealth is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. The level of stock required to be held is dependent on the amount of First Commonwealth's mortgage related assets and outstanding borrowings with the FHLB. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. As of December 31, 2014 and 2013, our FHLB stock totaled $44.5 million and $35.4 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, 2014. |
Loans_and_Allowance_for_Credit
Loans and Allowance for Credit Losses | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses | ||||||||||||||||||||||||||||||
The following table provides outstanding balances related to each of our loan types as of December 31: | |||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 1,052,109 | $ | 1,021,056 | |||||||||||||||||||||||||||
Real estate construction | 120,785 | 93,289 | |||||||||||||||||||||||||||||
Residential real estate | 1,226,344 | 1,262,718 | |||||||||||||||||||||||||||||
Commercial real estate | 1,405,256 | 1,296,472 | |||||||||||||||||||||||||||||
Loans to individuals | 652,814 | 610,298 | |||||||||||||||||||||||||||||
Total loans and leases net of unearned income | $ | 4,457,308 | $ | 4,283,833 | |||||||||||||||||||||||||||
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 adversely classified as OAEM, substandard or doubtful. | ||||||||||||||||||||||||||||||
Other Assets Especially Mentioned (OAEM) | Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Bank’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected. | ||||||||||||||||||||||||||||||
Substandard | Well-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard. | ||||||||||||||||||||||||||||||
Doubtful | Loans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable. | ||||||||||||||||||||||||||||||
The use of creditworthiness categories to grade loans permits management’s use of migration analysis to estimate a portion of credit risk. The Company’s internal creditworthiness grading system provides a measurement of credit risk based primarily on an evaluation of the borrower’s cash flow and collateral. Movements between these rating categories provide a predictive measure of credit losses and therefore 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 category for the years ended December 31: | |||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | Real estate construction | Residential real estate | Commercial real estate | Loans to individuals | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Pass | $ | 983,357 | $ | 112,536 | $ | 1,214,920 | $ | 1,353,773 | $ | 652,596 | $ | 4,317,182 | |||||||||||||||||||
Non-Pass | |||||||||||||||||||||||||||||||
OAEM | 32,563 | 8,013 | 2,315 | 29,479 | — | 72,370 | |||||||||||||||||||||||||
Substandard | 32,028 | 236 | 9,109 | 22,004 | 218 | 63,595 | |||||||||||||||||||||||||
Doubtful | 4,161 | — | — | — | — | 4,161 | |||||||||||||||||||||||||
Total Non-Pass | 68,752 | 8,249 | 11,424 | 51,483 | 218 | 140,126 | |||||||||||||||||||||||||
Total | $ | 1,052,109 | $ | 120,785 | $ | 1,226,344 | $ | 1,405,256 | $ | 652,814 | $ | 4,457,308 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | Real estate construction | Residential real estate | Commercial real estate | Loans to individuals | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Pass | $ | 943,107 | $ | 79,679 | $ | 1,245,422 | $ | 1,243,170 | $ | 610,094 | $ | 4,121,472 | |||||||||||||||||||
Non-Pass | |||||||||||||||||||||||||||||||
OAEM | 35,429 | 9,710 | 5,161 | 28,823 | 1 | 79,124 | |||||||||||||||||||||||||
Substandard | 42,520 | 3,900 | 12,135 | 24,479 | 203 | 83,237 | |||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||||||||
Total Non-Pass | 77,949 | 13,610 | 17,296 | 53,302 | 204 | 162,361 | |||||||||||||||||||||||||
Total | $ | 1,021,056 | $ | 93,289 | $ | 1,262,718 | $ | 1,296,472 | $ | 610,298 | $ | 4,283,833 | |||||||||||||||||||
Portfolio Risks | |||||||||||||||||||||||||||||||
The credit quality of our loan portfolio can potentially represent significant risk to our earnings, capital, regulatory agency relationships, investment community and shareholder returns. First Commonwealth devotes a substantial amount of resources managing this risk primarily through our credit administration department that develops and administers policies and procedures for underwriting, maintaining, monitoring and collecting activities. Credit administration is independent of lending departments and oversight is provided by the credit committee of the First Commonwealth Board of Directors. | |||||||||||||||||||||||||||||||
Total gross charge-offs for the years ended December 31, 2014 and 2013 were $17.5 million and $35.2 million, respectively. | |||||||||||||||||||||||||||||||
Criticized loans have been evaluated when determining the appropriateness of the allowance for credit losses, which we believe is adequate to absorb losses inherent to the portfolio as of December 31, 2014. However, changes in economic conditions, interest rates, borrower financial condition, delinquency trends or previously established fair values of collateral factors could significantly change those judgmental estimates. | |||||||||||||||||||||||||||||||
Age Analysis of Past Due Loans by Segment | |||||||||||||||||||||||||||||||
The following tables delineate the aging analysis of the recorded investments in past due loans as of December 31. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection. | |||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
30 - 59 | 60 - 89 | 90 days | Nonaccrual | Total past | Current | Total | |||||||||||||||||||||||||
days | days | and | due and | ||||||||||||||||||||||||||||
past due | past | greater | nonaccrual | ||||||||||||||||||||||||||||
due | and still | ||||||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 2,816 | $ | 213 | $ | 264 | $ | 27,007 | $ | 30,300 | $ | 1,021,809 | $ | 1,052,109 | |||||||||||||||||
Real estate construction | — | 1 | — | 236 | 237 | 120,548 | 120,785 | ||||||||||||||||||||||||
Residential real estate | 5,162 | 1,295 | 1,077 | 7,900 | 15,434 | 1,210,910 | 1,226,344 | ||||||||||||||||||||||||
Commercial real estate | 1,797 | 122 | — | 7,306 | 9,225 | 1,396,031 | 1,405,256 | ||||||||||||||||||||||||
Loans to individuals | 3,698 | 1,059 | 1,278 | 218 | 6,253 | 646,561 | 652,814 | ||||||||||||||||||||||||
Total | $ | 13,473 | $ | 2,690 | $ | 2,619 | $ | 42,667 | $ | 61,449 | $ | 4,395,859 | $ | 4,457,308 | |||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
30 - 59 | 60 - 89 | 90 days | Nonaccrual | Total past | Current | Total | |||||||||||||||||||||||||
days | days | and | due and | ||||||||||||||||||||||||||||
past due | past | greater | nonaccrual | ||||||||||||||||||||||||||||
due | and still | ||||||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 594 | $ | 319 | $ | 185 | $ | 23,631 | $ | 24,729 | $ | 996,327 | $ | 1,021,056 | |||||||||||||||||
Real estate construction | — | — | — | 2,567 | 2,567 | 90,722 | 93,289 | ||||||||||||||||||||||||
Residential real estate | 4,002 | 524 | 1,041 | 10,520 | 16,087 | 1,246,631 | 1,262,718 | ||||||||||||||||||||||||
Commercial real estate | 1,199 | 23 | 13 | 8,966 | 10,201 | 1,286,271 | 1,296,472 | ||||||||||||||||||||||||
Loans to individuals | 2,895 | 990 | 1,266 | 204 | 5,355 | 604,943 | 610,298 | ||||||||||||||||||||||||
Total | $ | 8,690 | $ | 1,856 | $ | 2,505 | $ | 45,888 | $ | 58,939 | $ | 4,224,894 | $ | 4,283,833 | |||||||||||||||||
Nonaccrual Loans | |||||||||||||||||||||||||||||||
The previous tables summarize nonaccrual loans by loan segment. The Company generally places loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain, when part of the principal balance has been charged off and no restructuring has occurred, or the loans reach a certain number of days past due. Generally, loans 90 days or more past due are placed on nonaccrual status, except for consumer loans which are placed in nonaccrual status at 150 days past due. | |||||||||||||||||||||||||||||||
When a loan is placed on nonaccrual, the accrued unpaid interest receivable is reversed against interest income and all future payments received are applied as a reduction to the loan principal. Generally, the loan is returned to accrual status when (a) all delinquent interest and principal become current under the terms of the loan agreement or (b) the loan is both well-secured and in the process of collection and collectability is no longer doubtful. | |||||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||||
Management considers loans to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Determination of impairment is treated the same across all loan categories. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole source or repayment for the loan is the operation or liquidation of collateral. When the loan is collateral dependent, the appraised value less estimated cost to sell is utilized. If management determines the value of the impaired loan is less than the recorded investment in the loan, impairment is recognized through an allowance estimate or a charge-off to the allowance. Troubled debt restructured loans on accrual status are considered to be impaired loans. | |||||||||||||||||||||||||||||||
When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received, under the cash basis method. | |||||||||||||||||||||||||||||||
Nonperforming loans decreased $4.1 million to $55.3 million at December 31, 2014 compared to $59.4 million at December 31, 2013. Contributing to this decrease was the sale of four real estate construction loans totaling $3.0 million and the payoff of six loans totaling $12.5 million. The payoffs included a $4.7 million commercial relationship with a local developer, a $3.1 million commercial real estate loan with a non-profit organization in western Pennsylvania, a $2.9 million commercial real estate loan to a real estate investor in western Pennsylvania, a $0.9 million residential real estate loan in western Pennsylvania, a $0.6 million commercial relationship with a western Pennsylvania glass manufacturer and a $0.3 million commercial real estate loan with a western Pennsylvania real estate investor. Net charge-offs recognized during 2014 totaled $13.4 million, including $5.8 million for a commercial industrial loan relationship with a gas drilling business and $0.6 million for a commercial loan in western Pennsylvania. | |||||||||||||||||||||||||||||||
A total of $32.2 million of loans were moved into nonaccrual status during the year ended December 31, 2014. Three commercial loan relationships comprised $22.1 million of this total. These relationships include: | |||||||||||||||||||||||||||||||
• | A $9.9 million relationship of commercial industrial and real estate loans to a local water facility construction company. | ||||||||||||||||||||||||||||||
• | A $8.0 million relationship of commercial loans with a gas drilling business that operated in western Pennsylvania with headquarters in Louisiana, of which $5.8 million was subsequently charged-off. | ||||||||||||||||||||||||||||||
• | A $4.2 million in commercial industrial loans to an audio visual equipment distributor. | ||||||||||||||||||||||||||||||
In addition to this, $3.8 million in consumer loans that were 150 days or more past due were moved to nonaccrual status. | |||||||||||||||||||||||||||||||
The specific allowance for nonperforming loans increased by $0.6 million at December 31, 2014 compared to December 31, 2013, primarily due to additions to nonaccrual loans. Unfunded commitments related to nonperforming loans were $46 thousand at December 31, 2014 and after consideration of available collateral related to these commitments, an off-balance sheet reserve of $14 thousand was established. | |||||||||||||||||||||||||||||||
There were no impaired loans held for sale at December 31, 2014 and December 31, 2013; sales of impaired loans during the years ended December 31, 2014 and 2013 resulted in gains of $77 thousand and $0.6 million, respectively. | |||||||||||||||||||||||||||||||
Significant nonaccrual loans as of December 31, 2014, included the following: | |||||||||||||||||||||||||||||||
• | A $10.0 million relationship of commercial industrial loans to a local energy company. These loans were originated from 2008 to 2011 and were placed in nonaccrual status during the third quarter of 2013. One of these loans, totaling $2.6 million, was modified, resulting in TDR classification in the second quarter of 2012. A second of these loans, totaling $0.3 million, was modified, resulting in TDR classification in the first quarter of 2013. The final piece of this relationship totaling $6.3 million, was modified in the fourth quarter of 2014, resulting in TDR classification. During the year ended December 31, 2014, chargeoffs of $0.5 million related to this relationship were recorded. A valuation of the collateral was completed during the third quarter of 2013, with updates to significant inputs completed in December 2014. | ||||||||||||||||||||||||||||||
• | A $9.9 million relationship of commercial industrial and real estate loans to a local water facility construction company. These loans were originated from 2009 to 2013 and were placed in nonaccrual status during the fourth quarter of 2014. A valuation of the collateral was completed during the third quarter of 2013. Updated appraisals have been ordered but were not received prior to year end. | ||||||||||||||||||||||||||||||
• | A $4.2 million in commercial industrial loans to an audio visual equipment distributor. These loans were originated in 2008 and refinanced by the Company in 2013. In the second quarter of 2014, the loans were placed on nonaccrual status. In the fourth quarter of 2014, this relationship was modified, resulting in a TDR classification. An updated valuation of the collateral was completed during the second quarter of 2014. | ||||||||||||||||||||||||||||||
The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of December 31, 2014 and 2013. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired for the years ended December 31, 2014, 2013 and 2012. Average balances are calculated based on month-end balances of the loans for the period reported and are included in the table below based on its period end allowance position. | |||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||
investment | principal | allowance | recorded | Income | |||||||||||||||||||||||||||
balance | investment | Recognized | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 9,439 | $ | 10,937 | $ | 11,536 | $ | 133 | |||||||||||||||||||||||
Real estate construction | 236 | 476 | 1,190 | 19 | |||||||||||||||||||||||||||
Residential real estate | 10,773 | 12,470 | 11,592 | 210 | |||||||||||||||||||||||||||
Commercial real estate | 8,768 | 10,178 | 8,830 | 98 | |||||||||||||||||||||||||||
Loans to individuals | 288 | 337 | 308 | 4 | |||||||||||||||||||||||||||
Subtotal | 29,504 | 34,398 | 33,456 | 464 | |||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 24,826 | 25,583 | $ | 9,304 | 15,797 | 143 | |||||||||||||||||||||||||
Real estate construction | — | — | — | — | — | ||||||||||||||||||||||||||
Residential real estate | 367 | 380 | 56 | 357 | 14 | ||||||||||||||||||||||||||
Commercial real estate | 554 | 554 | 101 | 184 | 4 | ||||||||||||||||||||||||||
Loans to individuals | — | — | — | — | — | ||||||||||||||||||||||||||
Subtotal | 25,747 | 26,517 | 9,461 | 16,338 | 161 | ||||||||||||||||||||||||||
Total | $ | 55,251 | $ | 60,915 | $ | 9,461 | $ | 49,794 | $ | 625 | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||
investment | principal | allowance | recorded | Income | |||||||||||||||||||||||||||
balance | investment | Recognized | |||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 6,752 | $ | 7,649 | $ | 14,454 | $ | 73 | |||||||||||||||||||||||
Real estate construction | 3,486 | 6,664 | 5,923 | 47 | |||||||||||||||||||||||||||
Residential real estate | 9,333 | 9,952 | 9,280 | 211 | |||||||||||||||||||||||||||
Commercial real estate | 13,606 | 14,719 | 27,881 | 250 | |||||||||||||||||||||||||||
Loans to individuals | 289 | 307 | 255 | 3 | |||||||||||||||||||||||||||
Subtotal | 33,466 | 39,291 | 57,793 | 584 | |||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 21,482 | 22,082 | $ | 7,364 | 16,479 | 64 | |||||||||||||||||||||||||
Real estate construction | 414 | 737 | 94 | 515 | — | ||||||||||||||||||||||||||
Residential real estate | 3,533 | 3,585 | 1,282 | 3,200 | 31 | ||||||||||||||||||||||||||
Commercial real estate | 488 | 612 | 84 | 188 | — | ||||||||||||||||||||||||||
Loans to individuals | — | — | — | — | — | ||||||||||||||||||||||||||
Subtotal | 25,917 | 27,016 | 8,824 | 20,382 | 95 | ||||||||||||||||||||||||||
Total | $ | 59,383 | $ | 66,307 | $ | 8,824 | $ | 78,175 | $ | 679 | |||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
Average | Interest | ||||||||||||||||||||||||||||||
recorded | Income | ||||||||||||||||||||||||||||||
investment | Recognized | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 9,217 | $ | 173 | |||||||||||||||||||||||||||
Real estate construction | 11,912 | — | |||||||||||||||||||||||||||||
Residential real estate | 8,114 | 72 | |||||||||||||||||||||||||||||
Commercial real estate | 28,574 | 66 | |||||||||||||||||||||||||||||
Loans to individuals | 103 | 2 | |||||||||||||||||||||||||||||
Subtotal | 57,920 | 313 | |||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 21,979 | 9 | |||||||||||||||||||||||||||||
Real estate construction | 1,457 | — | |||||||||||||||||||||||||||||
Residential real estate | 1,599 | 15 | |||||||||||||||||||||||||||||
Commercial real estate | 5,024 | 32 | |||||||||||||||||||||||||||||
Loans to individuals | — | — | |||||||||||||||||||||||||||||
Subtotal | 30,059 | 56 | |||||||||||||||||||||||||||||
Total | $ | 87,979 | $ | 369 | |||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||
As a result of adopting the amendments in ASU 2011-2, all restructurings that occurred on or after January 1, 2011 were assessed for identification as troubled debt restructurings considering the new guidance. No additional troubled debt restructurings were identified for loans for which the allowance for credit losses would have previously been measured under a general allowance for credit losses methodology. | |||||||||||||||||||||||||||||||
The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans as of December 31: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Troubled debt restructured loans | |||||||||||||||||||||||||||||||
Accrual status | $ | 12,584 | $ | 13,495 | $ | 13,037 | |||||||||||||||||||||||||
Nonaccrual status | 16,952 | 16,980 | 50,979 | ||||||||||||||||||||||||||||
Total | $ | 29,536 | $ | 30,475 | $ | 64,016 | |||||||||||||||||||||||||
Commitments | |||||||||||||||||||||||||||||||
Letters of credit | $ | — | $ | — | $ | 1,574 | |||||||||||||||||||||||||
Unused lines of credit | 4,120 | 452 | — | ||||||||||||||||||||||||||||
Total | $ | 4,120 | $ | 452 | $ | 1,574 | |||||||||||||||||||||||||
At December 31, 2014, troubled debt restructured loans decreased $0.9 million compared to December 31, 2013 and commitments related to troubled debt restructured loans increased $3.7 million for the same period. This decrease in loans is primarily the result of a payoff of four commercial loans totaling $11.3 million, including a $4.7 million relationship related to a local real estate developer, a $3.1 million commercial real estate loan with a non-profit organization and a $2.9 million commercial real estate loan in western Pennsylvania. These payoffs were offset by the addition of two large commercial relationships totaling $10.5 million; a $6.3 million loan related to a local energy company and a $4.2 million relationship with an audio visual distributer. The increase in commitments is due to addition of a $3.0 million unfunded commitment related to a local lumber company for which there is no outstanding balance. This relationship was modified in the fourth quarter of 2014. | |||||||||||||||||||||||||||||||
During 2014 and 2013, all decreases in balances between the pre-modification and post-modification balance are due to customer payments. | |||||||||||||||||||||||||||||||
During 2012, a $2.8 million nonaccrual loan to a water treatment plant and a $3.7 million accruing loan to a gas well servicing operation were each restructured with a twelve month principal forbearance. At December 31, 2012, the nonaccrual loan was fully reserved for while the the loan that was on accruing status was secured by company assets. During 2013, the accruing loan was placed in nonaccrual status. These loans are part of a $17.0 million commercial loan relationship with a shallow gas well operator whose business has been impacted by the sharp decline in natural gas prices due in part to the success of Marcellus deep well drilling. In addition to these two loans, other loans in this relationship include loans to a related exploration and production company and loans to the principal, which are secured by real estate and investment securities. Also, in 2012 a $3.3 million commercial real estate loan was restructured with a six month maturity extension. This loan has remained on accruing status and the collateral shortfall is fully reserved. The remainder of changes in loan balances for 2012 between the pre-modification balance and the post-modification balance is due to customer payments. | |||||||||||||||||||||||||||||||
The following tables provide detail, including specific reserve and reasons for modification, related to loans identified as troubled debt restructurings during the years ending December 31: | |||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
Type of Modification | |||||||||||||||||||||||||||||||
Number | Extend | Modify | Modify | Total | Post- | Specific | |||||||||||||||||||||||||
of | Maturity | Rate | Payments | Pre-Modification | Modification | Reserve | |||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 9 | $ | 5,487 | $ | — | $ | 14,529 | $ | 20,016 | $ | 13,785 | $ | 4,665 | ||||||||||||||||||
Residential real estate | 52 | — | 629 | 1,797 | 2,426 | 2,062 | — | ||||||||||||||||||||||||
Commercial real estate | 1 | — | — | 8 | 8 | 6 | — | ||||||||||||||||||||||||
Loans to individuals | 15 | — | 103 | 47 | 150 | 114 | — | ||||||||||||||||||||||||
Total | 77 | $ | 5,487 | $ | 732 | $ | 16,381 | $ | 22,600 | $ | 15,967 | $ | 4,665 | ||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
Type of Modification | |||||||||||||||||||||||||||||||
Number | Extend | Modify | Modify | Other | Total | Post- | Specific | ||||||||||||||||||||||||
of | Maturity | Rate | Payments | Pre-Modification | Modification | Reserve | |||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 14 | $ | 3,462 | $ | — | $ | 1,677 | $ | — | $ | 5,139 | $ | 3,104 | $ | 906 | ||||||||||||||||
Residential real estate | 46 | 347 | 418 | 2,116 | — | 2,881 | 2,316 | 161 | |||||||||||||||||||||||
Commercial real estate | 5 | 571 | 1,499 | 145 | — | 2,215 | 2,184 | 34 | |||||||||||||||||||||||
Loans to individuals | 17 | 10 | 101 | 33 | — | 144 | 109 | — | |||||||||||||||||||||||
Total | 82 | $ | 4,390 | $ | 2,018 | $ | 3,971 | $ | — | $ | 10,379 | $ | 7,713 | $ | 1,101 | ||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
Type of Modification | |||||||||||||||||||||||||||||||
Number | Extend | Modify | Modify | Other | Total | Post- | Specific | ||||||||||||||||||||||||
of | Maturity | Rate | Payments | Pre-Modification | Modification | Reserve | |||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 12 | $ | 1,599 | $ | 187 | $ | 9,476 | $ | — | $ | 11,262 | $ | 11,335 | $ | 4,237 | ||||||||||||||||
Real estate construction | 2 | 1,697 | — | — | — | 1,697 | 2,133 | 200 | |||||||||||||||||||||||
Residential real estate | 25 | 200 | 132 | 697 | 48 | 1,077 | 973 | 69 | |||||||||||||||||||||||
Commercial real estate | 4 | 3,280 | 4,308 | 71 | — | 7,659 | 7,607 | 409 | |||||||||||||||||||||||
Loans to individuals | 17 | — | 97 | 88 | 6 | 191 | 173 | — | |||||||||||||||||||||||
Total | 60 | $ | 6,776 | $ | 4,724 | $ | 10,332 | $ | 54 | $ | 21,886 | $ | 22,221 | $ | 4,915 | ||||||||||||||||
The troubled debt restructurings included in the above tables are also included in the impaired loan tables provided earlier in this footnote. Loans defined as modified due to a change in rate include loans that were modified for a change in rate as well as a reamortization of the principal and an extension of the maturity. For the years ended December 31, 2014, 2013 and 2012, $0.6 million, $2.0 million and $4.7 million, respectively, of total rate modifications represent loans with modifications to the rate as well as payment due to reamortization. | |||||||||||||||||||||||||||||||
A troubled debt restructuring is considered to be in default when a restructured loan is 90 days or more past due. As of December 31, 2014, two residential real estate loans totaling $7 thousand and one commercial real estate loan totaling $6 thousand restructured during 2014 were considered to be in default. At December 31, 2013, there was one residential real estate loan totaling $19 thousand restructured within the preceding twelve months that was considered to be in default. As of December 31, 2012, no loans were considered to be in default. | |||||||||||||||||||||||||||||||
The following tables provide detail related to the allowance for credit losses for the years ended December 31. During 2013, the negative $5.9 million provision for credit losses related to the unallocated portion of the allowance is a result of it no longer being treated as a separate component of the allowance but instead is now incorporated into the reserve provided for each loan category. This portion of the allowance for credit losses reflects the qualitative or environmental factors that are likely to cause estimated credit losses to differ from historical loss experience. | |||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
Commercial, | Real estate | Residential | Commercial | Loans to | Total | ||||||||||||||||||||||||||
financial, | construction | real estate | real estate | individuals | |||||||||||||||||||||||||||
agricultural | |||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||
Beginning Balance | $ | 22,663 | $ | 6,600 | $ | 7,727 | $ | 11,778 | $ | 5,457 | $ | 54,225 | |||||||||||||||||||
Charge-offs | (8,911 | ) | (296 | ) | (3,153 | ) | (1,148 | ) | (3,964 | ) | (17,472 | ) | |||||||||||||||||||
Recoveries | 734 | 1,340 | 650 | 612 | 766 | 4,102 | |||||||||||||||||||||||||
Provision (credit) | 15,141 | (5,581 | ) | (1,560 | ) | 639 | 2,557 | 11,196 | |||||||||||||||||||||||
Ending Balance | $ | 29,627 | $ | 2,063 | $ | 3,664 | $ | 11,881 | $ | 4,816 | $ | 52,051 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 9,304 | $ | — | $ | 56 | $ | 101 | $ | — | $ | 9,461 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 20,323 | 2,063 | 3,608 | 11,780 | 4,816 | 42,590 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||
Ending balance | 1,052,109 | 120,785 | 1,226,344 | 1,405,256 | 652,814 | 4,457,308 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | 33,332 | 193 | 7,127 | 7,790 | — | 48,442 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 1,018,777 | 120,592 | 1,219,217 | 1,397,466 | 652,814 | 4,408,866 | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
Commercial, | Real estate | Residential | Commercial | Loans to | Unallocated | Total | |||||||||||||||||||||||||
financial, | construction | real estate | real estate | individuals | |||||||||||||||||||||||||||
agricultural | |||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||
Beginning Balance | $ | 19,852 | $ | 8,928 | $ | 5,908 | $ | 22,441 | $ | 4,132 | $ | 5,926 | $ | 67,187 | |||||||||||||||||
Charge-offs | (18,399 | ) | (773 | ) | (1,814 | ) | (10,513 | ) | (3,679 | ) | — | (35,178 | ) | ||||||||||||||||||
Recoveries | 455 | 501 | 1,264 | 136 | 633 | — | 2,989 | ||||||||||||||||||||||||
Provision | 20,755 | (2,056 | ) | 2,369 | (286 | ) | 4,371 | (5,926 | ) | 19,227 | |||||||||||||||||||||
Ending Balance | $ | 22,663 | $ | 6,600 | $ | 7,727 | $ | 11,778 | $ | 5,457 | $ | — | $ | 54,225 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 7,364 | $ | 94 | $ | 1,282 | $ | 84 | $ | — | $ | — | $ | 8,824 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | 15,299 | 6,506 | 6,445 | 11,694 | 5,457 | — | 45,401 | ||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||
Ending balance | 1,021,056 | 93,289 | 1,262,718 | 1,296,472 | 610,298 | 4,283,833 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | 27,251 | 3,844 | 9,349 | 12,151 | — | 52,595 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 993,805 | 89,445 | 1,253,369 | 1,284,321 | 610,298 | 4,231,238 | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
Commercial, | Real estate | Residential | Commercial | Loans to | Unallocated | Total | |||||||||||||||||||||||||
financial, | construction | real estate | real estate | individuals | |||||||||||||||||||||||||||
agricultural | |||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||
Beginning Balance | $ | 18,200 | $ | 6,756 | $ | 8,237 | $ | 18,961 | $ | 4,244 | $ | 4,836 | $ | 61,234 | |||||||||||||||||
Charge-offs | (5,207 | ) | (3,601 | ) | (3,828 | ) | (851 | ) | (3,482 | ) | — | (16,969 | ) | ||||||||||||||||||
Recoveries | 443 | 582 | 422 | 410 | 521 | — | 2,378 | ||||||||||||||||||||||||
Provision (credit) | 6,416 | 5,191 | 1,077 | 3,921 | 2,849 | 1,090 | 20,544 | ||||||||||||||||||||||||
Ending Balance | $ | 19,852 | $ | 8,928 | $ | 5,908 | $ | 22,441 | $ | 4,132 | $ | 5,926 | $ | 67,187 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,331 | $ | 300 | $ | 780 | $ | 6,367 | $ | — | $ | — | $ | 17,778 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | 9,521 | 8,628 | 5,128 | 16,074 | 4,132 | 5,926 | 49,409 | ||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||
Ending balance | 1,019,822 | 87,438 | 1,241,565 | 1,273,661 | 582,218 | 4,204,704 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | 33,443 | 11,177 | 6,444 | 49,123 | — | 100,187 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 986,379 | 76,261 | 1,235,121 | 1,224,538 | 582,218 | 4,104,517 | |||||||||||||||||||||||||
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Variable Interest Entities [Abstract] | ||||||||
Variable Interest Entity Disclosure | Variable Interest Entities | |||||||
As defined by FASB ASC 810-10, “Consolidation,” a Variable Interest Entity (“VIE”) is a corporation, partnership, trust or any other legal structure used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. Under ASC 810-10, an entity that holds a variable interest in a VIE is required to consolidate the VIE if the entity is deemed to be the primary beneficiary, which generally means it is subject to a majority of the risk of loss from the VIE’s activities, is entitled to receive a majority of the entity’s residual returns, or both. | ||||||||
First Commonwealth’s VIEs are evaluated under the guidance included in ASU 2009-17. These VIEs include qualified affordable housing projects that First Commonwealth has invested in as part of its community reinvestment initiatives. We periodically assess whether or not our variable interests in these VIEs, based on qualitative analysis, provide us with a controlling interest in the VIE. The analysis includes an assessment of the characteristics of the VIE. We do not have a controlling financial interest in the VIE, which would require consolidation of the VIE, as we do not have the following characteristics: (1) the power to direct the activities that most significantly impact the VIE’s economic performance; and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||||||||
First Commonwealth’s maximum potential exposure is equal to its carrying value and is summarized in the table below as of December 31: | ||||||||
2014 | 2013 | |||||||
(dollars in thousands) | ||||||||
Low Income Housing Limited Partnership Investments | $ | 61 | $ | 207 | ||||
Commitments_and_Letters_of_Cre
Commitments and Letters of Credit | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Letters of Credit | Commitments and Letters of Credit | |||||||
First Commonwealth is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. First Commonwealth’s exposure to credit loss in the event of nonperformance by the other party of the financial instrument for commitments to extend credit, standby letters of credit and commercial letters of credit is represented by the contract or notional amount of those instruments. First Commonwealth uses the same credit policies for underwriting all loans, including these commitments and conditional obligations. | ||||||||
As of December 31, 2014 and 2013, First Commonwealth did not own or trade other financial instruments with significant off-balance sheet risk including derivatives such as futures, forwards, option contracts and the like, although such instruments may be appropriate to use in the future to manage interest rate risk. See Note 7, “Derivatives,” for a description of interest rate derivatives entered into by First Commonwealth. | ||||||||
The following table identifies the notional amount of those instruments at December 31: | ||||||||
2014 | 2013 | |||||||
(dollars in thousands) | ||||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 1,635,948 | $ | 1,571,987 | ||||
Financial standby letters of credit | 36,075 | 38,121 | ||||||
Performance standby letters of credit | 25,915 | 32,441 | ||||||
Commercial letters of credit | 2,611 | — | ||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. First Commonwealth evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by First Commonwealth upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral that is held varies but may include accounts receivable, inventory, property, plant and equipment, and residential and income-producing commercial properties. | ||||||||
Standby letters of credit and commercial letters of credit are conditional commitments issued by First Commonwealth to guarantee the performance of a customer to a third party. The contract or notional amount of these instruments reflects the maximum amount of future payments that First Commonwealth could be required to pay under the guarantees if there were a total default by the guaranteed parties, without consideration for possible recoveries under recourse provisions or from collateral held or pledged. In addition, many of these commitments are expected to expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. | ||||||||
The notional amounts outstanding at December 31, 2014 include amounts issued in 2014 of $0.3 million in financial standby letters of credit and $1.9 million in performance standby letters of credit. There were $0.2 million commercial letters of credit issued during 2014. A liability of $0.2 million and $0.1 million has been recorded as of December 31, 2014 and 2013, respectively, which represents the estimated fair value of letters of credit issued. The fair value of letters of credit is estimated based on the unrecognized portion of fees received at the time the commitment was issued. | ||||||||
Unused commitments and letters of credit provide exposure to future credit loss in the event of nonperformance by the borrower or guaranteed parties. Management’s evaluation of the credit risk in these commitments resulted in the recording of a liability of $3.1 million and $3.2 million as of December 31, 2014 and 2013, respectively. 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. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Premises and Equipment | Premises and Equipment | |||||||||
Premises and equipment are described as follows: | ||||||||||
Estimated Useful Life | 2014 | 2013 | ||||||||
(dollars in thousands) | ||||||||||
Land | Indefinite | $ | 12,098 | $ | 12,431 | |||||
Buildings and improvements | 10-50 years | 75,873 | 81,829 | |||||||
Leasehold improvements | 5-40 years | 14,229 | 14,354 | |||||||
Furniture and equipment | 3-10 years | 59,034 | 80,131 | |||||||
Software | 3-7 years | 37,007 | 46,133 | |||||||
Subtotal | 198,241 | 234,878 | ||||||||
Less accumulated depreciation and amortization | 133,252 | 166,938 | ||||||||
Total premises and equipment | $ | 64,989 | $ | 67,940 | ||||||
Depreciation related to premises and equipment included in noninterest expense for the years ended December 31, 2014, 2013 and 2012 amounted to $13.2 million, $10.4 million and $7.9 million, respectively. | ||||||||||
As a result of the Company's core processing system conversion, which was completed in the third quarter of 2014, the estimated average useful life on $14.0 million in software included in the table above for 2013 was reduced from an average life of 6 years to 3 years and the average useful life on $0.7 million of equipment was reduced from an average life of 5 years to 4 years. These assets were considered obsolete after the system conversion, resulting in accelerated depreciation of $5.6 million and $2.0 million being recognized in 2014 and 2013, respectively. | ||||||||||
At December 31, 2013, $0.2 million in software had an estimated useful life of 10 years, with 5 years remaining. During 2014, the use of this software was discontinued and the remaining book value of $0.1 million was fully depreciated. The estimated useful life for all other software is 3 to 7 years. | ||||||||||
First Commonwealth leases various premises and assorted equipment under non-cancellable agreements. Total future minimal rental commitments at December 31, 2014, were as follows: | ||||||||||
Premises | Equipment | |||||||||
(dollars in thousands) | ||||||||||
2015 | $ | 3,257 | $ | 56 | ||||||
2016 | 2,969 | — | ||||||||
2017 | 2,758 | — | ||||||||
2018 | 2,582 | — | ||||||||
2019 | 2,330 | — | ||||||||
Thereafter | 12,276 | — | ||||||||
Total | $ | 26,172 | $ | 56 | ||||||
Included in the lease commitments above is $321 thousand in lease payments to be paid under a sale-leaseback arrangement. The sale-leaseback transaction occurred in 2005 and resulted in a gain of $297 thousand on the sale of a branch that is being recognized over the 15 year lease term through 2020. | ||||||||||
Increases in utilities and taxes that may be passed on to the lessee under the terms of various lease agreements are not reflected in the above table. However, certain lease agreements provide for increases in rental payments based upon historical increases in the consumer price index or the lessor’s cost of operating the facility, and are included in the minimum lease commitments. Additionally, the table above includes rent expense that is recognized for rent holidays and during construction periods. Total lease expense amounted to $2.9 million, $4.2 million and $4.3 million in 2014, 2013 and 2012, respectively. |
Goodwill_and_Other_Amortizing_
Goodwill and Other Amortizing Intangible Assets | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill Disclosure [Abstract] | ||||||||||||
Goodwill and Other Amortizing Intangible Assets | Goodwill and Other Amortizing Intangible Assets | |||||||||||
FASB ASC Topic 350-20, “Intangibles—Goodwill and Other,” requires an annual valuation of the fair value of a reporting unit that has goodwill and a comparison of the fair value to the book value of equity to determine whether the goodwill has been impaired. Goodwill is also required to be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. When triggering events or circumstances indicate goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. ASU 2011-8 provides that if an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. | ||||||||||||
We consider First Commonwealth to be one reporting unit. The carrying amount of goodwill as of December 31, 2014 and 2013 was $161.4 million and $159.9 million, respectively. No impairment charges on goodwill or other intangible assets were incurred in 2014, 2013 or 2012. | ||||||||||||
We test goodwill for impairment as of November 30th each year and again at any quarter-end if any material events occur during a quarter that may affect goodwill. | ||||||||||||
An assessment of qualitative factors was completed as of November 30, 2014 and December 31, 2014 and indicated that it is more likely than not that the fair value of First Commonwealth's goodwill exceeds its carrying amount; therefore, the two step goodwill impairment test was not considered necessary. The assessment of qualitative factors considered the results of the Step 1 goodwill impairment test completed as of November 30, 2013 as well as macroeconomic factors, industry and market considerations, the company’s overall financial performance, and other company specific events occurring since the completion of the November 30, 2013 test. | ||||||||||||
As of December 31, 2014, goodwill was not considered impaired; however, changing economic conditions that may adversely affect our performance, the fair value of our assets and liabilities, our stock price could result in impairment, which could adversely affect earnings in future periods. Management will continue to monitor events that could impact this conclusion in the future. | ||||||||||||
FASB ASC Topic 350, “Intangibles—Other,” also requires that an acquired intangible asset be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, transferred, licensed, rented or exchanged, regardless of the acquirer’s intent to do so. | ||||||||||||
The following table summarizes other intangible assets, which for each year includes only core deposit intangibles: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Intangible | Amortization | Intangible | ||||||||||
Assets | Assets | |||||||||||
(dollars in thousands) | ||||||||||||
December 31, 2014 | ||||||||||||
Customer deposit intangibles | $ | 22,470 | $ | (21,773 | ) | $ | 697 | |||||
Customer list intangible | $ | 984 | $ | (16 | ) | $ | 968 | |||||
Total other intangible assets | $ | 23,454 | $ | (21,789 | ) | $ | 1,665 | |||||
December 31, 2013 | ||||||||||||
Customer deposit intangibles | $ | 22,470 | $ | (21,159 | ) | $ | 1,311 | |||||
Customer list intangible | $ | — | $ | — | $ | — | ||||||
Total other intangible assets | $ | 22,470 | $ | (21,159 | ) | $ | 1,311 | |||||
Core deposits are amortized over their expected lives using the present value of the benefit of the core deposits and straight-line methods of amortization. The core deposits have a remaining amortization period of 4.9 years and a weighted average amortization period of approximately three years. The customer list intangible represents the estimated value of the customer base for an insurance agency acquired in 2014. These amounts are amortized over their expected lives using expected cash flows based on retention of the customer base. The customer list intangible has a remaining amortization period and a weighted average amortization period of 14.8 years. First Commonwealth recognized amortization expense on other intangible assets of $0.6 million, $1.1 million, and $1.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
The following presents the estimated amortization expense of core deposit intangibles and the customer intangible list: | ||||||||||||
Core Deposit Intangibles | Customer Intangible List | Total | ||||||||||
(dollars in thousands) | ||||||||||||
2015 | $ | 338 | $ | 260 | $ | 598 | ||||||
2016 | 177 | 168 | 345 | |||||||||
2017 | 63 | 130 | 193 | |||||||||
2018 | 62 | 99 | 161 | |||||||||
2019 | 57 | 77 | 134 | |||||||||
Thereafter | — | 234 | 234 | |||||||||
Total | $ | 697 | $ | 968 | $ | 1,665 | ||||||
InterestBearing_Deposits
Interest-Bearing Deposits | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits [Abstract] | ||||||||
Interest-Bearing Deposits | Interest-Bearing Deposits | |||||||
Components of interest-bearing deposits at December 31 were as follows: | ||||||||
2014 | 2013 | |||||||
(dollars in thousands) | ||||||||
Interest-bearing demand deposits | $ | 81,851 | $ | 89,149 | ||||
Savings deposits | 2,402,288 | 2,506,631 | ||||||
Time deposits | 842,345 | 1,095,722 | ||||||
Total interest-bearing deposits | $ | 3,326,484 | $ | 3,691,502 | ||||
Interest-bearing deposits at December 31, 2014 and 2013, include allocations from interest-bearing demand deposit accounts of $427.7 million and $556.7 million, respectively, into savings which includes money market accounts. These reallocations are based on a formula and have been made to reduce First Commonwealth’s reserve requirement in compliance with regulatory guidelines. | ||||||||
Included in time deposits at December 31, 2014 and 2013, were certificates of deposit in denominations of $100 thousand or more of $334.0 million and $464.7 million, respectively. | ||||||||
Interest expense related to certificates of deposit in denominations of $100 thousand or greater amounted to $3.7 million in 2014, $4.7 million in 2013 and $5.3 million in 2012. | ||||||||
Included in time deposits at December 31, 2014, were certificates of deposit with the following scheduled maturities (dollars in thousands): | ||||||||
2015 | $ | 586,928 | ||||||
2016 | 130,777 | |||||||
2017 | 42,772 | |||||||
2018 | 25,446 | |||||||
2019 and thereafter | 56,422 | |||||||
Total | $ | 842,345 | ||||||
Shortterm_Borrowings
Short-term Borrowings | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Short-term Debt [Abstract] | |||||||||||||||||||||||||||||||||
Short-term Borrowings | Short-term Borrowings | ||||||||||||||||||||||||||||||||
Short-term borrowings at December 31 were as follows: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Ending | Average | Average | Ending | Average | Average | Ending | Average | Average | |||||||||||||||||||||||||
Balance | Balance | Rate | Balance | Balance | Rate | Balance | Balance | Rate | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Federal funds purchased | $ | 9,000 | $ | 11,691 | 0.36 | % | $ | 16,000 | $ | 11,982 | 0.36 | % | $ | 34,000 | $ | 47,727 | 0.27 | % | |||||||||||||||
Borrowings from FHLB | 945,000 | 644,651 | 0.31 | 478,100 | 335,449 | 0.27 | 178,100 | 214,703 | 0.25 | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | 151,876 | 159,051 | 0.24 | 132,515 | 130,957 | 0.25 | 144,127 | 139,766 | 0.28 | ||||||||||||||||||||||||
Total | $ | 1,105,876 | $ | 815,393 | 0.3 | $ | 626,615 | $ | 478,388 | 0.26 | $ | 356,227 | $ | 402,196 | 0.27 | ||||||||||||||||||
Maximum total at any month-end | $ | 1,105,876 | $ | 626,615 | $ | 486,144 | |||||||||||||||||||||||||||
Weighted average rate at year-end | 0.3 | % | 0.27 | % | 0.25 | % | |||||||||||||||||||||||||||
Interest expense on short-term borrowings for the years ended December 31 is detailed below: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Federal funds purchased | $ | 42 | $ | 43 | $ | 128 | |||||||||||||||||||||||||||
Borrowings from FHLB | 2,019 | 893 | 545 | ||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 388 | 326 | 397 | ||||||||||||||||||||||||||||||
Total interest on short-term borrowings | $ | 2,449 | $ | 1,262 | $ | 1,070 | |||||||||||||||||||||||||||
Subordinated_Debentures
Subordinated Debentures | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure Subordinated Debentures [Abstract] | ||||||||||||||
Subordinated Debentures | Subordinated Debentures | |||||||||||||
Subordinated Debentures outstanding at December 31 are as follows: | ||||||||||||||
2014 | 2013 | |||||||||||||
Due | Amount | Rate | Amount | Rate | ||||||||||
(dollars in thousands) | ||||||||||||||
Owed to: | ||||||||||||||
First Commonwealth Capital Trust II | 2034 | $ | 30,929 | LIBOR + 2.85 | $ | 30,929 | LIBOR + 2.85 | |||||||
First Commonwealth Capital Trust III | 2034 | 41,238 | LIBOR + 2.85 | 41,238 | LIBOR + 2.85 | |||||||||
Total | $ | 72,167 | $ | 72,167 | ||||||||||
First Commonwealth has established three trusts, First Commonwealth Capital Trust I, First Commonwealth Capital Trust II, and First Commonwealth Capital Trust III, of which 100% of the common equity is owned by First Commonwealth. The trusts were formed for the purpose of issuing company obligated mandatorily redeemable capital securities to third-party investors and investing the proceeds from the sale of the capital securities solely in junior subordinated debt securities (“subordinated debentures”) of First Commonwealth. The subordinated debentures held by each trust are the sole assets of the trust. | ||||||||||||||
Interest on the debentures issued to First Commonwealth Capital Trust III is paid quarterly at a floating rate of LIBOR + 2.85% which is reset quarterly. Subject to regulatory approval, First Commonwealth may redeem the debentures, in whole or in part, at its option on any interest payment date at a redemption price equal to 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of the redemption. Deferred issuance costs of $630 thousand are being amortized on a straight-line basis over the term of the securities. | ||||||||||||||
Interest on the debentures issued to First Commonwealth Capital Trust II is paid quarterly at a floating rate of LIBOR + 2.85%, which is reset quarterly. Subject to regulatory approval, First Commonwealth may redeem the debentures, in whole or in part, at its option at a redemption price equal to 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of the redemption. Deferred issuance costs of $471 thousand are being amortized on a straight-line basis over the term of the securities. | ||||||||||||||
On January 29, 2013, the Company’s Board of Directors authorized the redemption of 100% of First Commonwealth Capital Trust I as of April 1, 2013, at a redemption price of 103.325% of the principal amount, plus accrued and unpaid interest. At the time of redemption, a $1.1 million redemption premium was paid and $0.5 million in unamortized deferred issuance costs were recognized. Interest on debentures issued to First Commonwealth Capital Trust I was paid semiannually at a fixed rate of 9.50% and deferred issuance costs of $996 thousand were being amortized on a straight line basis over the term of the securities. |
Other_Longterm_Debt
Other Long-term Debt | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||
Other Long-term Debt | Other Long-term Debt | |||||||||||||||||||
Other long-term debt at December 31 follows: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Amount | Weighted | Weighted | Amount | Weighted | Weighted | |||||||||||||||
Average | Average | Average | Average | |||||||||||||||||
Contractual | Effective | Contractual | Effective | |||||||||||||||||
Rate | Rate | Rate | Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Borrowings from FHLB due: | ||||||||||||||||||||
2014 | $ | 57,892 | 1.13 | % | 1.13 | % | ||||||||||||||
2015 | $ | 80,142 | 0.82 | % | 0.82 | % | 79,971 | 0.82 | 0.82 | |||||||||||
2016 | 563 | 3.82 | 3.82 | 389 | 4.64 | 4.64 | ||||||||||||||
2017 | 585 | 3.83 | 3.83 | 407 | 4.64 | 4.64 | ||||||||||||||
2018 | 607 | 3.83 | 3.83 | 426 | 4.64 | 4.64 | ||||||||||||||
2019 | 631 | 3.84 | 3.84 | |||||||||||||||||
Thereafter | 6,931 | 3.81 | 3.81 | 5,300 | 4.66 | 4.66 | ||||||||||||||
Total | $ | 89,459 | $ | 144,385 | ||||||||||||||||
The weighted average contractual rate reflects the rate due to creditors. The weighted average effective rate of long-term debt in the schedule above includes the effect of purchase accounting valuation adjustments that were recorded in connection with prior business combinations. | ||||||||||||||||||||
All of First Commonwealth’s Federal Home Loan Bank stock, along with an interest in mortgage loans and residential mortgage backed securities, has been pledged as collateral with the Federal Home Loan Bank of Pittsburgh. | ||||||||||||||||||||
Capital securities included in total long-term debt on the Consolidated Statements of Financial Condition are excluded from the above, but are described in Note 17, “Subordinated Debentures.” |
Fair_Values_of_Assets_and_Liab
Fair Values of Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities | ||||||||||||||||||||
FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosures for non-financial assets and non-financial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). All non-financial assets are included either as a separate line item on the Consolidated Statements of Financial Condition or in the “Other assets” category of the Consolidated Statements of Financial Condition. Currently, First Commonwealth does not have any non-financial liabilities to disclose. | |||||||||||||||||||||
FASB ASC Topic 825, “Financial Instruments,” permits entities to irrevocably elect to measure select financial instruments and certain other items at fair value. The unrealized gains and losses are required to be included in earnings each reporting period for the items that fair value measurement is elected. First Commonwealth has elected not to measure any existing financial instruments at fair value under FASB ASC Topic 825; however, in the future we may elect to adopt this guidance for select financial instruments. | |||||||||||||||||||||
In accordance with FASB ASC Topic 820, First Commonwealth groups financial assets and financial liabilities measured at fair value in three levels, based on the principal markets in which the assets and liabilities are transacted and the observability of the data points used to determine fair value. These levels are: | |||||||||||||||||||||
• | Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange (“NYSE”). Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 1 securities include equity holdings comprised of publicly traded bank stocks which were priced using quoted market prices. | ||||||||||||||||||||
• | Level 2—Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained for identical or comparable assets or liabilities from alternative pricing sources with reasonable levels of price transparency. Level 2 includes Obligations of U.S. Government securities issued by Agencies and Sponsored Enterprises, Obligations of States and Political Subdivisions, certain corporate securities, FHLB stock, interest rate derivatives that include interest rate swaps, interest rate caps and risk participation agreements, certain other real estate owned and certain impaired loans. | ||||||||||||||||||||
Level 2 investment securities are valued by a recognized third party pricing service using observable inputs. The model used by the pricing service varies by asset class and incorporates available market, trade and bid information as well as cash flow information when applicable. Because many fixed-income investment securities do not trade on a daily basis, the model uses available information such as benchmark yield curves, benchmarking of like investment securities, sector groupings and matrix pricing. The model will also use processes such as an option-adjusted spread to assess the impact of interest rates and to develop prepayment estimates. Market inputs normally used in the pricing model include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. | |||||||||||||||||||||
Management validates the market values provided by the third party service by having another recognized pricing service price 100% of the securities on an annual basis and a random sample of securities each quarter, monthly monitoring of variances from prior period pricing and, on a monthly basis, evaluating pricing changes compared to expectations based on changes in the financial markets. | |||||||||||||||||||||
Other Investments are comprised of FHLB stock whose estimated fair value is based on its par value. Additional information on FHLB stock is provided in Note 9, “Impairment of Investment Securities.” | |||||||||||||||||||||
Interest rate derivatives are reported at estimated fair value utilizing Level 2 inputs and are included in Other assets and Other liabilities. These consist of interest rate swaps where there is no significant deterioration in the counterparties' (loan customers) credit risk since origination of the interest rate swap, as well as interest rate caps and risk participation agreements. First Commonwealth values its interest rate swap and cap positions using a yield curve by taking market prices/rates for an appropriate set of instruments. The set of instruments currently used to determine the U.S. Dollar yield curve includes cash LIBOR rates from overnight to three months, Eurodollar futures contracts and swap rates from three years to thirty years. These yield curves determine the valuations of interest rate swaps. Interest rate derivatives are further described in Note 7, “Derivatives.” | |||||||||||||||||||||
For purposes of potential valuation adjustments to our derivative positions, First Commonwealth evaluates the credit risk of its counterparties as well as our own credit risk. Accordingly, we have considered factors such as the likelihood of default, expected loss given default, net exposures and remaining contractual life, among other things, in determining if any estimated fair value adjustments related to credit risk are required. We review our counterparty exposure quarterly, and when necessary, appropriate adjustments are made to reflect the exposure. | |||||||||||||||||||||
We also utilize this approach to estimate our own credit risk on derivative liability positions. In 2014, we have not realized any losses due to a counterparty's inability to pay any net uncollateralized position. | |||||||||||||||||||||
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, loans held for sale, certain interest rate derivatives, certain impaired loans and certain other real estate. | ||||||||||||||||||||
Our pooled trust preferred collateralized debt obligations are collateralized by the trust preferred securities of individual banks, thrifts and bank holding companies in the U.S. There has been little or no active trading in these securities since 2009; therefore it was more appropriate to determine estimated fair value using a discounted cash flow analysis. Detail on the process for determining appropriate cash flows for this analysis is provided in Note 9 “Impairment of Investment Securities.” The discount rate applied to the cash flows is determined by evaluating the current market yields for comparable corporate and structured credit products along with an evaluation of the risks associated with the cash flows of the comparable security. Due to the fact that there is no active market for the pooled trust preferred collateralized debt obligations, one key reference point is the market yield for the single issue trust preferred securities issued by banks and thrifts for which there is more activity than for the pooled securities. Adjustments are then made to reflect the credit and structural differences between these two security types. | |||||||||||||||||||||
Management validates the estimated fair value of the pooled trust preferred collateralized debt obligations by understanding the pricing methodology utilized by third party pricing services and monitoring the performance of the underlying collateral, discussing the discount rate, cash flow assumptions and general market trends with the specialized third party and by confirming changes in the underlying collateral to the trustee 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. | |||||||||||||||||||||
Loans held for sale are carried at the lower of cost or fair value with the fair value being the expected sales price of the loan. If a sales agreement has been executed, the fair value is equal to the sales price. | |||||||||||||||||||||
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 2013, we experienced a $0.9 million credit loss as a result of a counterparty's inability to pay the net uncollateralized position on an interest rate swap. The full amount of this credit loss was provided for in prior periods. | |||||||||||||||||||||
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 | Valuation Technique | Unobservable Inputs | Range / (weighted | ||||||||||||||||||
(dollars in | average) | ||||||||||||||||||||
thousands) | |||||||||||||||||||||
Pooled Trust Preferred Securities | $ | 28,999 | Discounted Cash Flow | Probability of default | 0% - 100% (17.16%) | ||||||||||||||||
Prepayment rates | 0% - 73.88% (6.13%) | ||||||||||||||||||||
Discount rates | 5.25% - 14.00% (a) | ||||||||||||||||||||
Equities | 1,420 | Par Value | N/A | N/A | |||||||||||||||||
Impaired Loans | 4,116 | (b) | Gas Reserve study | Discount rate | 10.00% | ||||||||||||||||
Gas per MCF | $3.00 - $4.85 (c) | ||||||||||||||||||||
Oil per BBL/d | $53.91 - $71.01 (c) | ||||||||||||||||||||
NGL per gallon | $0.83 (c) | ||||||||||||||||||||
Other Real Estate Owned | 153 | Internal Valuation | N/A | N/A | |||||||||||||||||
(a) | incorporates spread over the risk free rate related primarily to credit quality and illiquidity of securities. | ||||||||||||||||||||
(b) | the remainder of impaired loans valued using Level 3 inputs are not included in this disclosure as the values of those loans are based on bankruptcy agreement documentation. | ||||||||||||||||||||
(c) | unobservable inputs are defined as follows: MCF—million cubic feet; BBL/d—barrels per day; NGL—natural gas liquid. | ||||||||||||||||||||
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 rates would result in an increase in the estimated fair value of the loans, while a decrease in these prices would result in a lower fair value measurement. | |||||||||||||||||||||
The tables below present the balances of assets and liabilities measured at fair value on a recurring basis at December 31: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Obligations of U.S. Government Agencies: | |||||||||||||||||||||
Mortgage-Backed Securities—Residential | $ | — | $ | 25,936 | $ | — | $ | 25,936 | |||||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | |||||||||||||||||||||
Mortgage-Backed Securities—Residential | — | 950,881 | — | 950,881 | |||||||||||||||||
Mortgage-Backed Securities—Commercial | — | 74 | — | 74 | |||||||||||||||||
Other Government-Sponsored Enterprises | — | 267,877 | — | 267,877 | |||||||||||||||||
Obligations of States and Political Subdivisions | — | 27,377 | — | 27,377 | |||||||||||||||||
Corporate Securities | — | 7,255 | — | 7,255 | |||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | — | — | 28,999 | 28,999 | |||||||||||||||||
Total Debt Securities | — | 1,279,400 | 28,999 | 1,308,399 | |||||||||||||||||
Equities | — | — | 1,420 | 1,420 | |||||||||||||||||
Total Securities Available for Sale | — | 1,279,400 | 30,419 | 1,309,819 | |||||||||||||||||
Other Investments | — | 44,545 | — | 44,545 | |||||||||||||||||
Loans Held for Sale | — | 2,502 | — | 2,502 | |||||||||||||||||
Other Assets (a) | — | 11,186 | — | 11,186 | |||||||||||||||||
Total Assets | $ | — | $ | 1,337,633 | $ | 30,419 | $ | 1,368,052 | |||||||||||||
Other Liabilities (a) | $ | — | $ | 10,671 | $ | — | $ | 10,671 | |||||||||||||
Total Liabilities | $ | — | $ | 10,671 | $ | — | $ | 10,671 | |||||||||||||
(a) | Hedging and non-hedging interest rate derivatives | ||||||||||||||||||||
2013 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Obligations of U.S. Government Agencies: | |||||||||||||||||||||
Mortgage-Backed Securities—Residential | $ | — | $ | 25,204 | $ | — | $ | 25,204 | |||||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | |||||||||||||||||||||
Mortgage-Backed Securities—Residential | — | 994,887 | — | 994,887 | |||||||||||||||||
Mortgage-Backed Securities—Commercial | — | 105 | — | 105 | |||||||||||||||||
Other Government-Sponsored Enterprises | — | 266,125 | — | 266,125 | |||||||||||||||||
Obligations of States and Political Subdivisions | — | 80 | — | 80 | |||||||||||||||||
Corporate Securities | — | 7,021 | — | 7,021 | |||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | — | — | 23,523 | 23,523 | |||||||||||||||||
Total Debt Securities | — | 1,293,422 | 23,523 | 1,316,945 | |||||||||||||||||
Equities | — | — | 1,420 | 1,420 | |||||||||||||||||
Total Securities Available for Sale | — | 1,293,422 | 24,943 | 1,318,365 | |||||||||||||||||
Other Investments | — | 35,444 | — | 35,444 | |||||||||||||||||
Loans Held for Sale | — | — | — | — | |||||||||||||||||
Other Assets (a) | — | 14,358 | — | 14,358 | |||||||||||||||||
Total Assets | $ | — | $ | 1,343,224 | $ | 24,943 | $ | 1,368,167 | |||||||||||||
Other Liabilities (a) | $ | — | $ | 14,318 | $ | — | $ | 14,318 | |||||||||||||
Total Liabilities | $ | — | $ | 14,318 | $ | — | $ | 14,318 | |||||||||||||
(a) | Non-hedging interest rate derivatives | ||||||||||||||||||||
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows for the year ended December 31, 2014: | |||||||||||||||||||||
Pooled Trust | Equities | Loans | Other | Total | |||||||||||||||||
Preferred | Held for | Assets | |||||||||||||||||||
Collateralized | Sale | ||||||||||||||||||||
Debt | |||||||||||||||||||||
Obligations | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Balance, beginning of year | $ | 23,523 | $ | 1,420 | $ | — | $ | — | $ | 24,943 | |||||||||||
Total gains or losses | |||||||||||||||||||||
Included in earnings | — | — | 77 | — | 77 | ||||||||||||||||
Included in other comprehensive income | 7,162 | — | — | — | 7,162 | ||||||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||||||
Purchases | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||
Sales | — | — | (3,112 | ) | — | (3,112 | ) | ||||||||||||||
Settlements | (1,686 | ) | — | — | — | (1,686 | ) | ||||||||||||||
Transfers from Level 3 | — | — | — | — | — | ||||||||||||||||
Transfers into Level 3 | — | — | 3,035 | — | 3,035 | ||||||||||||||||
Balance, end of year | $ | 28,999 | $ | 1,420 | $ | — | $ | — | $ | 30,419 | |||||||||||
There are no gains or losses included in earnings for the period that are attributable to the change in realized gains (losses) relating to assets held at December 31, 2014. | |||||||||||||||||||||
During the year ended December 31, 2014, there were no transfers between fair value Levels 1 and 2. However, $3.0 million of loans were transferred into Level 3 from Level 2 due to the loans being transferred to a held for sale status. The loans transferred and subsequently sold related to two nonperforming relationships for which this was determined to be an appropriate exit strategy. Completion of the loan sales resulted in a $0.1 million gain for the period. | |||||||||||||||||||||
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows for the year ended December 31, 2013: | |||||||||||||||||||||
Pooled Trust | Equities | Loans | Other | Total | |||||||||||||||||
Preferred | Held for | Assets | |||||||||||||||||||
Collateralized | Sale | ||||||||||||||||||||
Debt | |||||||||||||||||||||
Obligations | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Balance, beginning of year | $ | 23,373 | $ | 1,420 | $ | — | $ | — | $ | 24,793 | |||||||||||
Total gains or losses | |||||||||||||||||||||
Included in earnings | (1,395 | ) | — | 625 | — | (770 | ) | ||||||||||||||
Included in other comprehensive income | 12,338 | — | — | — | 12,338 | ||||||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||||||
Purchases | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||
Sales | — | — | (20,760 | ) | — | (20,760 | ) | ||||||||||||||
Settlements | (10,793 | ) | — | — | — | (10,793 | ) | ||||||||||||||
Transfers from Level 3 | — | — | — | — | — | ||||||||||||||||
Transfers into Level 3 | — | — | 20,135 | — | 20,135 | ||||||||||||||||
Balance, end of year | $ | 23,523 | $ | 1,420 | $ | — | $ | — | $ | 24,943 | |||||||||||
There are no gains or losses included in earnings for the period that are attributable to the change in realized gains (losses) relating to assets held at December 31, 2013. | |||||||||||||||||||||
During 2013, there were no transfers between fair value Levels 1 and 2. However, $20.1 million of loans were transferred into Level 3 from Level 2 due to the loans being transferred to a held for sale status. The loans transferred and subsequently sold related to three nonperforming relationships for which this was determined to be an appropriate exit strategy. Completion of the loan sales resulted in a $0.6 million gain for the period. | |||||||||||||||||||||
The tables below present the balances of assets measured at fair value on a nonrecurring basis at December 31 and total gains and losses realized on these assets during the year ended December 31: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||
Gains | |||||||||||||||||||||
(Losses) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Impaired loans | $ | — | $ | 34,864 | $ | 10,926 | $ | 45,790 | $ | (7,017 | ) | ||||||||||
Other real estate owned | — | 7,828 | 153 | 7,981 | (1,319 | ) | |||||||||||||||
Total Assets | $ | — | $ | 42,692 | $ | 11,079 | $ | 53,771 | $ | (8,336 | ) | ||||||||||
2013 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||
Gains | |||||||||||||||||||||
(Losses) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Impaired loans | $ | — | $ | 36,903 | $ | 13,656 | $ | 50,559 | $ | (13,681 | ) | ||||||||||
Other real estate owned | — | 12,752 | 172 | 12,924 | (198 | ) | |||||||||||||||
Total Assets | $ | — | $ | 49,655 | $ | 13,828 | $ | 63,483 | $ | (13,879 | ) | ||||||||||
Impaired loans over $100 thousand are individually reviewed to determine the amount of each loan considered to be at risk of noncollection. The fair value for impaired loans that are collateral based is determined by reviewing real property appraisals, equipment valuations, accounts receivable listings and other financial information. A discounted cash flow analysis is performed to determine fair value for impaired loans when an observable market price or a current appraisal is not available. For real estate secured loans, First Commonwealth’s loan policy requires updated appraisals be obtained at least every twelve months on all impaired loans with balances of $250 thousand and over. For real estate secured loans with balances under $250 thousand, we rely on broker price opinions. For non-real estate secured assets, the Company normally relies on third party valuations specific to the collateral type. | |||||||||||||||||||||
The fair value for other real estate owned determined by either an independent market based appraisal less estimated costs to sell or an executed sales agreement is classified as Level 2. The fair value for other real estate owned determined using an internal valuation is classified as Level 3. Other real estate owned has a current carrying value of $7.2 million as of December 31, 2014 and consisted primarily of commercial real estate properties in Pennsylvania. We review whether events and circumstances subsequent to a transfer to other real estate owned have occurred that indicate the balance of those assets may not be recoverable. If events and circumstances indicate further impairment, we will record a charge to the extent that the carrying value of the assets exceed their fair values, less estimated costs to sell, as determined by valuation techniques appropriate in the circumstances. | |||||||||||||||||||||
Certain other assets and liabilities, including goodwill, core deposit intangibles and customer list intangibles are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. Additional information related to this measurement is provided in Note 14 “Goodwill and Other Amortizing Intangible Assets.” There were no other assets or liabilities measured at fair value on a nonrecurring basis during 2014. | |||||||||||||||||||||
FASB ASC Topic 825-10, “Transition Related to FSP FAS 107-1” and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments,” require 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 are based on quoted market prices, if available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Pooled trust preferred collateralized debt obligation values are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and are not based on market exchange, dealer or broker traded transactions. These valuations incorporate certain assumptions and projections in determining the fair value assigned to each instrument. The carrying value of other investments, which includes FHLB stock, is considered a reasonable estimate of fair value. | |||||||||||||||||||||
Loans held for sale: The fair value of loans held for sale are estimated utilizing a present value of future discounted cash flows of the loan utilizing a risk-based expected return to discount the value, unless a sales agreement has been executed, in which case the sales price would equal 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, which is not an exit price under FASB ASC Topic 820, “Fair Value Measurements and Disclosures.” | |||||||||||||||||||||
Off-balance sheet instruments: Many of First Commonwealth’s off-balance sheet instruments, primarily loan commitments and standby letters of credit, are expected to expire without being drawn upon; therefore, the commitment amounts do not necessarily represent future cash requirements. FASB ASC Topic 460, “Guarantees,” clarified that a guarantor is required to recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. The carrying amount and estimated fair value for standby letters of credit was $0.2 million and $0.1 million at December 31, 2014 and 2013, respectively. See Note 12, “Commitments and Letters of Credit,” for additional information. | |||||||||||||||||||||
Deposit liabilities: Estimated fair value of demand deposits, savings accounts and money market deposits is the amount payable on demand at the reporting date because of the customers' ability to withdraw funds immediately. The carrying value of variable rate time deposit accounts and certificates of deposit approximate the fair value at the report date. Also, fair values of fixed rate time deposits for both periods are estimated by discounting the future cash flows using interest rates currently being offered and a schedule of aggregated expected maturities. | |||||||||||||||||||||
Short-term borrowings: The fair values of borrowings from the FHLB were estimated based on the estimated incremental borrowing rate for similar types of borrowings. The carrying amounts of other short-term borrowings, such as federal funds purchased and securities sold under agreement to repurchase, were used to approximate fair value due to the short-term nature of the borrowings. | |||||||||||||||||||||
Long-term debt and subordinated debt: The fair value of long-term debt and subordinated debt is estimated by discounting the future cash flows using First Commonwealth’s estimated incremental borrowing rate for similar types of borrowing arrangements. | |||||||||||||||||||||
The following table presents carrying amounts and estimated fair values of First Commonwealth’s financial instruments at December 31: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Carrying | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and due from banks | $ | 72,276 | $ | 72,276 | $ | 72,276 | $ | — | $ | — | |||||||||||
Interest-bearing deposits | 2,262 | 2,262 | 2,262 | — | — | ||||||||||||||||
Securities available for sale | 1,309,819 | 1,309,819 | — | 1,279,400 | 30,419 | ||||||||||||||||
Other investments | 44,545 | 44,545 | — | 44,545 | — | ||||||||||||||||
Loans held for sale | 2,502 | 2,502 | — | 2,502 | — | ||||||||||||||||
Loans | 4,457,308 | 4,439,766 | — | 34,864 | 4,404,902 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | 4,315,511 | 4,319,997 | — | 4,319,997 | — | ||||||||||||||||
Short-term borrowings | 1,105,876 | 1,105,867 | — | 1,105,867 | — | ||||||||||||||||
Long-term debt | 89,459 | 90,319 | — | 90,319 | — | ||||||||||||||||
Subordinated debt | 72,167 | 62,815 | — | — | 62,815 | ||||||||||||||||
2013 | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Carrying | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and due from banks | $ | 74,427 | $ | 74,427 | $ | 74,427 | $ | — | $ | — | |||||||||||
Interest-bearing deposits | 3,012 | 3,012 | 3,012 | — | — | ||||||||||||||||
Securities available for sale | 1,318,365 | 1,318,365 | — | 1,293,422 | 24,943 | ||||||||||||||||
Other investments | 35,444 | 35,444 | — | 35,444 | — | ||||||||||||||||
Loans | 4,283,833 | 4,321,847 | — | 36,903 | 4,284,944 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | 4,603,863 | 4,531,685 | — | 4,531,685 | — | ||||||||||||||||
Short-term borrowings | 626,615 | 626,603 | — | 626,603 | — | ||||||||||||||||
Long-term debt | 144,385 | 145,477 | — | 145,477 | — | ||||||||||||||||
Subordinated debt | 72,167 | 51,706 | — | — | 51,706 | ||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||||||
The income tax provision for the years ended December 31 is as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Current tax provision for income exclusive of securities transactions: | |||||||||||||||||||||
Federal | $ | 12,661 | $ | 2,509 | $ | 12,035 | |||||||||||||||
State | 157 | 68 | 72 | ||||||||||||||||||
Total current tax provision | 12,818 | 2,577 | 12,107 | ||||||||||||||||||
Deferred tax provision | 4,862 | 12,704 | 2,551 | ||||||||||||||||||
Total tax provision | $ | 17,680 | $ | 15,281 | $ | 14,658 | |||||||||||||||
The statutory to effective tax rate reconciliation for the years ended December 31 is as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Amount | % of | Amount | % of | Amount | % of | ||||||||||||||||
Pretax | Pretax | Pretax | |||||||||||||||||||
Income | Income | Income | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Tax at statutory rate | $ | 21,747 | 35 | % | $ | 19,867 | 35 | % | $ | 19,814 | 35 | % | |||||||||
Increase (decrease) resulting from: | |||||||||||||||||||||
Income from bank owned life insurance | (1,926 | ) | (3 | ) | (1,939 | ) | (3 | ) | (2,048 | ) | (4 | ) | |||||||||
Tax-exempt interest income, net | (2,133 | ) | (4 | ) | (2,600 | ) | (5 | ) | (2,789 | ) | (5 | ) | |||||||||
Tax credits | (134 | ) | — | (144 | ) | — | (267 | ) | — | ||||||||||||
Other | 126 | — | 97 | — | (52 | ) | — | ||||||||||||||
Total tax provision | $ | 17,680 | 28 | % | $ | 15,281 | 27 | % | $ | 14,658 | 26 | % | |||||||||
The total tax provision for financial reporting differs from the amount computed by applying the statutory federal income tax rate to income before taxes. First Commonwealth ordinarily generates an annual effective tax rate that is less than the statutory rate of 35% due to benefits resulting from tax-exempt interest, income from bank owned life insurance and tax benefits associated with low income housing tax credits. The consistent level of tax benefits that reduce First Commonwealth’s tax rate below the 35% statutory rate produced an annual effective tax rate of 28%, 27% and 26% for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Allowance for credit losses | $ | 18,218 | $ | 18,979 | |||||||||||||||||
Postretirement benefits other than pensions | 679 | 726 | |||||||||||||||||||
Alternative minimum tax credit carryforward | 8,627 | 13,896 | |||||||||||||||||||
Litigation reserve | 3,000 | — | |||||||||||||||||||
Unrealized loss on securities available for sale | 2,463 | 11,235 | |||||||||||||||||||
Writedown of other real estate owned | 603 | 207 | |||||||||||||||||||
Deferred compensation | 2,246 | 2,118 | |||||||||||||||||||
Accrued interest on nonaccrual loans | 1,059 | 1,481 | |||||||||||||||||||
Other-than-temporary impairment of securities | 9,239 | 9,693 | |||||||||||||||||||
Depreciation of assets | 1,127 | 1,546 | |||||||||||||||||||
Accrued incentives | 1,594 | 1,153 | |||||||||||||||||||
Unfunded loan commitment allowance | 1,078 | 1,106 | |||||||||||||||||||
Deferred rent | 969 | 653 | |||||||||||||||||||
Other | 1,354 | 2,462 | |||||||||||||||||||
Total deferred tax assets | 52,256 | 65,255 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Basis difference in assets acquired | (344 | ) | (518 | ) | |||||||||||||||||
Loan origination fees and costs | (1,337 | ) | (637 | ) | |||||||||||||||||
Income from unconsolidated subsidiary | (603 | ) | (590 | ) | |||||||||||||||||
Other | (318 | ) | (332 | ) | |||||||||||||||||
Total deferred tax liabilities | (2,602 | ) | (2,077 | ) | |||||||||||||||||
Net deferred tax asset | $ | 49,654 | $ | 63,178 | |||||||||||||||||
The net deferred tax asset of $49.7 million as of December 31, 2014 includes a $8.6 million alternative minimum tax credit carryforward with an indefinite life. There is also a $9.2 million deferred tax asset for other-than-temporary impairment of securities, of which $0.4 million are potential capital losses that can only be utilized if capital gains are realized. | |||||||||||||||||||||
Management assesses all available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. In evaluating deferred tax assets, future taxable income forecasted over the next three years was considered. The amount of future taxable income used in management’s valuation is based upon management approved forecasts, evaluation of historical earnings levels, proven ability to raise capital to support growth or during times of economic stress and consideration of prudent and feasible potential tax strategies. If future events differ from our current forecasts, a valuation allowance may be required, which could have a material impact on our financial condition and results of operations. Based on our evaluation, including the consideration of the weighting of positive and negative evidence, as of December 31, 2014, management has determined that no valuation allowance is necessary for the deferred tax assets because it is more likely than not that these assets will be realized through future reversals of existing temporary differences and through future taxable income. | |||||||||||||||||||||
In accordance with FASB ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes,” the Company has no material unrecognized tax benefits or accrued interest and penalties as of December 31, 2014. We do not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months and will record interest and penalties as a component of noninterest expense. | |||||||||||||||||||||
First Commonwealth is subject to routine audits of our tax returns by the Internal Revenue Service as well as all states in which we conduct business. Federal and state income tax years 2011 through 2013 are open for examination as of December 31, 2014. |
Retirement_Plans
Retirement Plans | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Retirement Plans | Retirement Plans | |||||||||||
First Commonwealth has a savings plan pursuant to the provisions of section 401(k) of the Internal Revenue code. Effective January 1, 2013, a participating employee can receive a maximum matching contribution of 6% of their compensation. In addition, each participating employee may contribute up to 80% of their eligible compensation to the plan. The 401(k) plan expense was $2.6 million in 2014, $2.6 million in 2013, and $2.6 million in 2012. | ||||||||||||
First Commonwealth maintains a Non-Qualified Deferred Compensation Plan ("NQDC Plan") to provide deferred compensation for those employees whose total annual or annualized Plan compensation for a calendar year is at least $110,000. Prior to 2012, the NQDC Plan was called the Supplemental Executive Retirement Plan (“SERP”). The NQDC Plan provides participants whose maximum retirement contribution is limited by IRS rules to defer additional compensation. | ||||||||||||
Participants in the NQDC Plan are eligible to defer (on a pre-tax basis) from 1% to 25% of their eligible Plan compensation. There was no NQDC Plan expense in 2014, 2013 and 2012. | ||||||||||||
Select employees from former acquisitions were covered by postretirement benefit plans which provide medical and life insurance coverage. The measurement date for these plans was December 31. | ||||||||||||
Postretirement Benefits Other than Pensions from Prior Acquisitions | ||||||||||||
Net periodic benefit cost of these plans for the years ended December 31, was as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
Service cost | $ | — | $ | — | $ | — | ||||||
Interest cost on projected benefit obligation | 62 | 62 | 75 | |||||||||
Amortization of transition obligation | — | — | 2 | |||||||||
Gain amortization | (29 | ) | (7 | ) | (32 | ) | ||||||
Net periodic benefit cost | $ | 33 | $ | 55 | $ | 45 | ||||||
The following table sets forth the change in the benefit obligation and plan assets as of December 31: | ||||||||||||
2014 | 2013 | |||||||||||
(dollars in thousands) | ||||||||||||
Change in Benefit Obligation | ||||||||||||
Benefit obligation at beginning of year | $ | 1,644 | $ | 1,986 | ||||||||
Service cost | — | — | ||||||||||
Interest cost | 62 | 62 | ||||||||||
Amendments | — | — | ||||||||||
Actuarial loss (gain) | 284 | (225 | ) | |||||||||
Net benefits paid | (168 | ) | (179 | ) | ||||||||
Benefit obligation at end of year | 1,822 | 1,644 | ||||||||||
Change in Plan Assets | ||||||||||||
Fair value of plan assets at beginning of year | — | — | ||||||||||
Actual return on plan assets | — | — | ||||||||||
Employer contributions | 168 | 179 | ||||||||||
Net benefits paid | (168 | ) | (179 | ) | ||||||||
Fair value of plan assets at end of year | — | — | ||||||||||
Funded Status at End of Year | 1,822 | 1,644 | ||||||||||
Unrecognized transition obligation | — | — | ||||||||||
Unrecognized net gain | 117 | 430 | ||||||||||
Amounts recognized in retained earnings | $ | 1,939 | $ | 2,074 | ||||||||
As of December 31, the funded status of the plan is: | ||||||||||||
2014 | 2013 | |||||||||||
(dollars in thousands) | ||||||||||||
Amounts Recognized in the Statement of Financial Condition as Other liabilities | $ | 1,822 | $ | 1,644 | ||||||||
The following table sets forth the amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit costs as of December 31: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
Amounts recognized in accumulated other comprehensive income, net of tax: | ||||||||||||
Net (gain) loss | $ | (76 | ) | $ | (280 | ) | $ | (138 | ) | |||
Transition obligation | — | — | — | |||||||||
Total | $ | (76 | ) | $ | (280 | ) | $ | (138 | ) | |||
Weighted-average assumptions used to determine the benefit obligation as of December 31 are as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted-average Assumptions | ||||||||||||
Discount rate | 3.61 | % | 4.01 | % | 3.31 | % | ||||||
Health care cost trend: Initial | 6.5 | % | 6.75 | % | 7 | % | ||||||
Health care cost trend: Ultimate | 4.75 | % | 4.75 | % | 4.75 | % | ||||||
Year ultimate reached | 2022 | 2022 | 2022 | |||||||||
Weighted-average assumptions used to determine the net benefit costs as of December 31 are as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted Average Assumptions for Net Periodic Cost | ||||||||||||
Discount rate | 4.01 | % | 3.31 | % | 4.22 | % | ||||||
Health care cost trend: Initial | 6.75 | % | 7 | % | 8 | % | ||||||
Health care cost trend: Ultimate | 4.75 | % | 4.75 | % | 4.75 | % | ||||||
Year ultimate reached | 2022 | 2022 | 2016 | |||||||||
Corridor | 10 | % | 10 | % | 10 | % | ||||||
Recognition period for gains and losses | 10 | 11 | 12 | |||||||||
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”) introduced a prescription drug benefit under Medicare Part D and a federal subsidy to sponsors of retiree health care benefit plans that provide a prescription drug benefit that is at least actuarially equivalent to Medicare Part D. The postretirement plans of First Commonwealth are provided through insurance coverage; therefore, First Commonwealth will not receive a direct federal subsidy. The preceding measures of the accumulated postretirement benefit cost assume that First Commonwealth will not receive the subsidy due to the relatively small number of retirees. | ||||||||||||
The health care cost trend rate assumption can have a significant impact on the amounts reported for this plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||
One-Percentage- | One-Percentage- | |||||||||||
Point Increase | Point Decrease | |||||||||||
(dollars in thousands) | ||||||||||||
Effect on postretirement benefit obligation | $ | 74 | $ | (67 | ) | |||||||
Effect on total of service and interest cost components | 2 | (2 | ) | |||||||||
As of December 31, 2014, the projected benefit payments for the next ten years are as follows: | ||||||||||||
Projected Benefit | ||||||||||||
Payments | ||||||||||||
(dollars in thousands) | ||||||||||||
2015 | $ | 197 | ||||||||||
2016 | 192 | |||||||||||
2017 | 187 | |||||||||||
2018 | 172 | |||||||||||
2019 | 145 | |||||||||||
2020 - 2024 | 623 | |||||||||||
The projected payments were calculated using the same assumptions as those used to calculate the benefit obligations included in this note. | ||||||||||||
The estimated costs that will be amortized from accumulated other comprehensive income into net periodic cost for 2015 are as follows (dollars in thousands): | ||||||||||||
Postretirement | ||||||||||||
Benefits | ||||||||||||
(dollars in thousands) | ||||||||||||
Net gain | $ | (4 | ) | |||||||||
Transition obligation | — | |||||||||||
Total | $ | (4 | ) |
Unearned_ESOP_Shares
Unearned ESOP Shares | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Unearned ESOP Shares | Unearned ESOP Shares | ||||
During 2012, all employees with at least one year of service were eligible to participate in the ESOP. Contributions to the plan are determined by the Board of Directors and are based upon a prescribed percentage of the annual compensation of all participants. The ESOP acquired shares of First Commonwealth’s common stock in a transaction whereby the ESOP Trust borrowed funds that were guaranteed by First Commonwealth. The borrowed amounts represented leveraged and unallocated shares, and accordingly were recorded as long-term debt with the offset as a reduction of common shareholders’ equity. The borrowing had a balance of $1.6 million at December 31, 2011 and matured in November of 2012. All the remaining shares held as collateral for the loan were released and allocated to participants when the borrowing was repaid. Compensation costs related to the plan were $733 thousand in 2012. | |||||
On August 28, 2014, First Commonwealth received a determination letter from the IRS in relation to the termination of the ESOP stating that the termination of the plan does not adversely affect the Plan's federal tax status. | |||||
The following is an analysis of ESOP shares held in suspense and the fair value of those shares as of December 31: | |||||
2012 | |||||
(dollars in thousands) | |||||
Shares in suspense, beginning of the year | 104,661 | ||||
Shares allocated | (104,661 | ) | |||
Shares acquired | — | ||||
Shares in suspense, end of the year | — | ||||
Fair market value of shares in suspense | — | ||||
Interest paid on the ESOP loan and dividends received on unallocated shares for the year ended December 31 were: | |||||
2012 | |||||
(dollars in thousands) | |||||
Interest paid on ESOP loan | $ | 13 | |||
Dividends on unallocated shares | 19 | ||||
Dividends on unallocated shares were used for debt service while all dividends on allocated shares were allocated or paid to the participants. |
Incentive_Compensation_Plan
Incentive Compensation Plan | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Incentive Compensation Plan | Incentive Compensation Plan | ||||||||||||||||||||
On January 20, 2009, the Board of Directors of the Company adopted, with shareholder approval, the First Commonwealth Financial Corporation Incentive Compensation Plan. This plan allows for shares of common stock to be issued to employees, directors, and consultants of the Company and its subsidiaries as an incentive to aid in the financial success of the Company. The shares can be issued as options, stock appreciation rights, performance share or unit awards, dividend or dividend equivalent rights, stock awards, restricted stock awards, or other annual incentive awards. Up to 5,000,000 shares of stock can be awarded under this plan, of which 4,169,742 shares were still eligible for awards as of December 31, 2014. | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
The following provides detail on the restricted stock awards which were issued and outstanding in 2014, 2013 and 2012 in order to retain and attract key employees. The grant date fair value of the restricted stock awards is equal to the price of First Commonwealth’s common stock on grant date. | |||||||||||||||||||||
Grant Date | Shares issued | Grant Price | Vesting Date | Number of Equal Vesting Periods | |||||||||||||||||
November 17, 2014 | 3,500 | $ | 9.26 | November 17, 2017 | 1 | ||||||||||||||||
April 8, 2014 | 27,500 | 8.89 | April 8, 2017 | 3 | |||||||||||||||||
March 24, 2014 | 46,000 | 9.18 | March 24, 2017 | 1 | |||||||||||||||||
March 4, 2014 | 5,000 | 8.75 | March 4, 2017 | 1 | |||||||||||||||||
January 1, 2014 | 12,626 | 8.82 | December 31, 2014 | 1 | |||||||||||||||||
August 16, 2013 | 3,000 | 7.57 | August 16, 2016 | 1 | |||||||||||||||||
May 31, 2013 | 45,000 | 7.21 | May 31, 2016 | 3 | |||||||||||||||||
March 1, 2013 | 10,000 | 7.35 | March 1, 2016 | 1 | |||||||||||||||||
February 24, 2012 | 34,000 | 5.96 | December 31, 2014 | 1 | |||||||||||||||||
February 24, 2012 | 90,000 | 5.96 | February 24, 2015 | 1 | |||||||||||||||||
January 1, 2012 | 100,000 | 5.26 | January 1, 2016 | 4 | |||||||||||||||||
November 21, 2011 | 10,000 | 4.41 | November 21, 2014 | 1 | |||||||||||||||||
April 1, 2011 | 25,000 | 6.82 | April 1, 2016 | 1 | |||||||||||||||||
January 22, 2010 | 30,120 | 5.7 | January 22, 2012 | 2 | |||||||||||||||||
Compensation expense related to restricted stock was $1.0 million, $0.5 million and $0.4 million in 2014, 2013 and 2012, respectively. As of December 31, 2014, there was $2.3 million of unrecognized compensation cost related to unvested restricted stock awards granted. | |||||||||||||||||||||
A summary of the status of First Commonwealth’s unvested service-based restricted stock awards as of December 31 and changes for the years ended on those dates is presented below: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
Outstanding, beginning of the year | 271,000 | $ | 6.07 | 253,000 | $ | 5.71 | 50,060 | $ | 6 | ||||||||||||
Granted | 94,626 | 9.03 | 58,000 | 7.25 | 224,000 | 5.65 | |||||||||||||||
Vested | (98,487 | ) | 6.18 | (35,000 | ) | 5.46 | (17,060 | ) | 5.73 | ||||||||||||
Forfeited | (2,139 | ) | 5.96 | (5,000 | ) | 5.96 | (4,000 | ) | 5.96 | ||||||||||||
Outstanding, end of the year | 265,000 | 7.08 | 271,000 | 6.07 | 253,000 | 5.71 | |||||||||||||||
The following provides detail on restricted stock awards estimated to be granted on a performance award basis during 2014, 2013 and 2012. These plans were previously approved by the Board of Directors. | |||||||||||||||||||||
Grant Date | Target Share Award | Performance Period (years) | Award if threshold met | Award if targets are met | Award if targets exceeded | Award if threshold not achieved | Vesting After Performance Period (years) | Final vesting | |||||||||||||
January 17, 2011 | 54,166 | 3 | 40 | % | 100 | % | 200 | % | — | % | 1 | January 17, 2014 | |||||||||
February 24, 2012 | 68,000 | 3 | 40 | % | 100 | % | 200 | % | — | % | 1 | December 31, 2015 | |||||||||
January 28, 2013 | 128,611 | 3 | 40 | % | 100 | % | 200 | % | — | % | 1 | December 31, 2016 | |||||||||
January 27, 2014 | 125,000 | 3 | 40 | % | 100 | % | 200 | % | — | % | 0 | December 31, 2016 | |||||||||
The following table summarizes the estimated unvested target share awards for the Plans as of December 31: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Outstanding, beginning of the year | 250,777 | 151,333 | 93,333 | ||||||||||||||||||
Granted | 126,389 | 138,611 | 74,000 | ||||||||||||||||||
Issued | (12,626 | ) | — | — | |||||||||||||||||
Forfeited | (80,540 | ) | (39,167 | ) | (16,000 | ) | |||||||||||||||
Outstanding, end of the year | 284,000 | 250,777 | 151,333 | ||||||||||||||||||
The estimated unvested target awards for the Plans have an estimated fair value of $9.22 per share for each year based on the closing price of Company stock as of December 31, 2014. | |||||||||||||||||||||
Stock Option Plan | |||||||||||||||||||||
First Commonwealth’s stock based compensation plan expired on October 15, 2005, and is described below. Although the plan currently has outstanding awards, it has expired. All of the exercise prices and related number of shares have been adjusted to reflect historical stock splits. The plan permitted the Executive Compensation Committee to grant options for up to 4.5 million shares of First Commonwealth’s common stock through October 15, 2005. | |||||||||||||||||||||
The vesting requirements and terms of options granted were at the discretion of the Executive Compensation Committee. Options granted in 2005 vested in the year granted. All options expire ten years from the grant date. All equity compensation plans were approved by security holders. | |||||||||||||||||||||
A summary of the status of First Commonwealth’s outstanding stock options as of December 31 and changes for the years ended on those dates is presented below: | |||||||||||||||||||||
12/31/14 | 12/31/13 | 12/31/12 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Outstanding, beginning of the year | 27,000 | $ | 14.49 | 196,322 | $ | 11.64 | 496,863 | $ | 10.03 | ||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||
Exercised | — | — | — | — | (130,672 | ) | 6.76 | ||||||||||||||
Forfeited | (12,000 | ) | 14.41 | (169,322 | ) | 11.19 | (169,869 | ) | 10.68 | ||||||||||||
Balance, end of the year | 15,000 | 14.55 | 27,000 | 14.49 | 196,322 | 11.64 | |||||||||||||||
Exercisable at the end of the year | 15,000 | 14.55 | 27,000 | 14.49 | 196,322 | 11.64 | |||||||||||||||
The intrinsic value of stock options exercised during the years ended December 31, 2012 was $1.41 per share. There were no options exercised during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||
The following table summarizes information about the stock options outstanding at December 31, 2014: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Exercise Price | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contract | Price | Price | |||||||||||||||||||
Life | |||||||||||||||||||||
$14.55 | 15,000 | 0 | $ | 14.55 | 15,000 | $ | 14.55 | ||||||||||||||
Contingent_Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities |
Legal proceedings | |
Market Rate Savings IRA Litigation | |
McGrogan v. First Commonwealth Bank was filed as a class action on January 12, 2009, in the Court of Common Pleas of Allegheny County, Pennsylvania. The action alleges that the Bank promised class members a minimum interest rate of 8% on its IRA Market Rate Savings Account for as long as the class members kept their money on deposit in the IRA account. The class asserted that the Bank committed fraud, breached its modified contract with the class members, and violated the Pennsylvania Unfair Trade Practice and Consumer Protection Law ("UTPCPL") when it resigned as custodian of the IRA Market Rate Savings Accounts in 2008 and offered the class members a roll-over IRA account with a 3.5% interest rate. Plaintiffs sought monetary damages for the alleged breach of contract, punitive damages for the alleged fraud and Unfair Trade Practice and Consumer Protection Law violations and attorney’s fees. The court granted class certification as to the breach of modified contract claim and denied class certification as to the fraud and Pennsylvania Unfair Trade Practice and Consumer Protection Law claims. The breach of contract claim was predicated upon a letter sent to customers in 1998 which reversed an earlier decision by the Bank to reduce the rate paid on the accounts. The letter stated, in relevant part, “This letter will serve as notification that a decision has been made to re-establish the rate on your account to eight percent (8)%. This rate will be retroactive to your most recent maturity date and will continue going forward on deposits presently in the account and on annual additions.” On August 30, 2012, the Court entered an order granting the Bank’s motion for summary judgment and dismissed the class action claims. The Court found that the Bank retained the right to resign as custodian of the accounts and that the act of resigning as custodian and closing the accounts did not breach the terms of the underlying IRA contract. On appeal, the Superior Court affirmed the denial of class certification to the claims of fraud in the execution and violation of the UTPCPL. The Superior Court found that none of the other issues were ripe for appeal. Jurisdiction was returned to the Court of Common Pleas where the individual fraud and UTPCPL claims of Mr. and Mrs. McGrogan were scheduled for trial. | |
In December 2013, three new complaints were filed by 34 former members of the McGrogan class alleging fraud in the execution and violation of the UTPCPL based upon substantially similar facts to the claims of Mr. and Mrs. McGrogan. | |
In January 2015, the Bank and the various plaintiffs reached a preliminary global settlement of this litigation. The settlement, which is subject to court approval and other conditions, would resolve the claims of the 36 individual plaintiffs and the claims of the other former members of the McGrogan class. First Commonwealth established a reserve in the amount of $8.6 million as of December 31, 2014 against the anticipated cost of the settlement. The contingent reserve is included in "Other liabilities" in the Consolidated Statements of Financial Condition. | |
Other matters | |
There are no other material legal proceedings to which First Commonwealth or its subsidiaries are a party, or of which their property is the subject, except proceedings which arise in the normal course of business and, in the opinion of management, will not have a material adverse effect on the consolidated operations or financial position of First Commonwealth or its subsidiaries. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Related Party Transactions [Abstract] | ||||
Related Party Transactions | Related Party Transactions | |||
Some of First Commonwealth’s directors, executive officers, principal shareholders and their related interests had transactions with the subsidiary bank in the ordinary course of business. All deposit and loan transactions were made on substantially the same terms, such as collateral and interest rates, as those prevailing at the time for comparable transactions. In the opinion of management, these transactions do not involve more than the normal risk of collectibility nor do they present other unfavorable features. It is anticipated that similar transactions will be entered into in the future. | ||||
The following is an analysis of loans to related parties (dollars in thousands): | ||||
31-Dec-13 | $ | 683 | ||
Advances | 297 | |||
Repayments | (258 | ) | ||
Other | — | |||
31-Dec-14 | $ | 722 | ||
The “Other” line primarily reflects decreases due to changes in the individuals designated as a “related party” during the year. |
Regulatory_Restrictions_and_Ca
Regulatory Restrictions and Capital Adequacy | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||
Regulatory Restrictions and Capital Adequacy | Regulatory Restrictions and Capital Adequacy | ||||||||||||||||||||
The amount of funds available to the parent from its subsidiary bank is limited by restrictions imposed on all depository institutions by banking regulation that restricts and limits the payment of dividends and the ability of depository institutions to engage in transactions, including lending transactions and asset purchases, with affiliates. | |||||||||||||||||||||
First Commonwealth is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators which, if undertaken, could have a direct material effect on First Commonwealth’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, First Commonwealth and its banking subsidiary 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 a bi-annual basis. This analysis is reviewed with our Board of Directors. Our most recent capital stress test was completed in December 2013. | |||||||||||||||||||||
On July 9, 2013, federal banking agencies approved changes to the regulatory capital framework, which are effective beginning on January 1, 2015, with some items phasing in over a period of time. The most significant of these changes include higher minimum capital requirements, as the minimum tier I capital ratio increased from 4.0% to 6.0% and the establishment of 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. Management currently expects that First Commonwealth will remain well-capitalized after the adoption of these changes. | |||||||||||||||||||||
Under regulations in effect through December 31, 2014, quantitative measures established by regulation to ensure capital adequacy require First Commonwealth to maintain minimum amounts and ratios of Total and Tier I capital (common and certain other “core” equity capital) to risk weighted assets, and of Tier I capital to average assets. As of December 31, 2014, First Commonwealth and its banking subsidiary met all capital adequacy requirements to which they are subject. | |||||||||||||||||||||
As of December 31, 2014, First Commonwealth Bank was considered well capitalized under the regulatory framework for prompt corrective action as in effect on that date. To be considered well capitalized under the rules in effect through December 31, 2014, the bank must maintain minimum Total risk-based capital, Tier I risk-based capital and Tier I leverage ratios as set forth in the table below: | |||||||||||||||||||||
Actual | Regulatory Minimum | Well Capitalized Regulatory Guidelines | |||||||||||||||||||
Capital | Ratio | Capital | Ratio | Capital | Ratio | ||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Total Capital to Risk Weighted Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 662,733 | 12.79 | % | $ | 414,460 | 8 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 647,500 | 12.48 | 415,217 | 8 | $ | 519,021 | 10 | % | |||||||||||||
Tier I Capital to Risk Weighted Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 607,602 | 11.73 | % | $ | 207,230 | 4 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 592,369 | 11.41 | 207,608 | 4 | $ | 311,413 | 6 | % | |||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 607,602 | 9.85 | % | $ | 246,738 | 4 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 592,369 | 9.66 | 245,276 | 4 | $ | 306,595 | 5 | % | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Total Capital to Risk Weighted Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 656,235 | 13.26 | % | $ | 396,009 | 8 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 637,415 | 12.87 | 396,275 | 8 | $ | 495,344 | 10 | % | |||||||||||||
Tier I Capital to Risk Weighted Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 598,851 | 12.1 | % | $ | 198,004 | 4 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 580,031 | 11.71 | 198,138 | 4 | $ | 297,206 | 6 | % | |||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 598,851 | 10 | % | $ | 239,430 | 4 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 580,031 | 9.75 | 237,993 | 4 | $ | 297,491 | 5 | % | |||||||||||||
Capital
Capital | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Capital Additional Information [Abstract] | |
Capital | Capital |
On June 19, 2012 First Commonwealth announced a $50.0 million common stock repurchase program. On January 29, 2013, an additional share repurchase program was authorized for up to $25.0 million in shares of the Company’s common stock. On January 28, 2014, an additional share repurchase program was authorized for up to $25.0 million in shares of the Company's common stock. As of December 31, 2014, all three programs were completed resulting in a total of 13,734,185 shares repurchased at an average price of $7.31 per share. |
Condensed_Financial_Informatio
Condensed Financial Information of First Commonwealth Financial Corporation (parent company only) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Financial Information of First Commonwealth Financial Corporation (parent company only) | Condensed Financial Information of First Commonwealth Financial Corporation (parent company only) | |||||||||||
Statements of Financial Condition | December 31, | |||||||||||
2014 | 2013 | |||||||||||
(dollars in thousands) | ||||||||||||
Assets | ||||||||||||
Cash | $ | 10,402 | $ | 8,370 | ||||||||
Loans | 24 | 27 | ||||||||||
Investment in subsidiaries | 712,610 | 696,438 | ||||||||||
Investment in unconsolidated subsidiary trusts | 2,182 | 2,182 | ||||||||||
Investment in jointly-owned company | 8,749 | 8,559 | ||||||||||
Premises and equipment, net | 4,287 | 6,376 | ||||||||||
Receivable from subsidiaries | — | 267 | ||||||||||
Dividends receivable from subsidiaries | — | 1,319 | ||||||||||
Other assets | 50,988 | 62,633 | ||||||||||
Total assets | $ | 789,242 | $ | 786,171 | ||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Accrued expenses and other liabilities | $ | 930 | $ | 2,307 | ||||||||
Subordinated debentures payable | 72,167 | 72,167 | ||||||||||
Shareholders’ equity | 716,145 | 711,697 | ||||||||||
Total liabilities and shareholders’ equity | $ | 789,242 | $ | 786,171 | ||||||||
Statements of Income | For the years ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
Interest and dividends | $ | 1 | $ | 1 | $ | 1 | ||||||
Dividends from subsidiaries | 49,207 | 65,140 | 64,342 | |||||||||
Interest expense | (2,335 | ) | (3,128 | ) | (5,711 | ) | ||||||
Other income | 1,251 | 2,653 | 12,581 | |||||||||
Operating expense | (6,766 | ) | (8,820 | ) | (19,061 | ) | ||||||
Income (loss) before taxes and equity in undistributed (loss) earnings of subsidiaries | 41,358 | 55,846 | 52,152 | |||||||||
Applicable income tax benefits | 2,968 | 3,384 | 4,364 | |||||||||
Income before equity in undistributed (loss) earnings of subsidiaries | 44,326 | 59,230 | 56,516 | |||||||||
Equity in undistributed earnings (loss) of subsidiaries | 127 | (17,748 | ) | (14,562 | ) | |||||||
Net income | $ | 44,453 | $ | 41,482 | $ | 41,954 | ||||||
For the years ended December 31, | ||||||||||||
Statements of Cash Flow | 2014 | 2013 | 2012 | |||||||||
(dollars in thousands) | ||||||||||||
Operating Activities | ||||||||||||
Net income | $ | 44,453 | $ | 41,482 | $ | 41,954 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 2,150 | 3,030 | 3,719 | |||||||||
Net gain (loss) on sales of assets | — | 17 | (107 | ) | ||||||||
(Increase) decrease in prepaid income taxes | (487 | ) | 3,044 | (3,044 | ) | |||||||
Undistributed equity in subsidiaries | (127 | ) | 17,748 | 14,562 | ||||||||
Other net | 13,077 | 12,964 | 8,789 | |||||||||
Net cash provided by operating activities | 59,066 | 78,285 | 65,873 | |||||||||
Investing Activities | ||||||||||||
Net change in loans | 3 | 4 | 4 | |||||||||
Purchases of premises and equipment | (47 | ) | (123 | ) | (3,005 | ) | ||||||
Proceeds from sale of other assets | 13 | 1,132 | 4,309 | |||||||||
Net cash (used in) provided by investing activities | (31 | ) | 1,013 | 1,308 | ||||||||
Financing Activities | ||||||||||||
Repayments of subordinated debenture | — | (34,702 | ) | — | ||||||||
Discount on dividend reinvestment plan purchases | (65 | ) | (112 | ) | (92 | ) | ||||||
Dividends paid | (26,174 | ) | (22,344 | ) | (18,759 | ) | ||||||
Proceeds from reissuance of treasury stock | 192 | 176 | 1,028 | |||||||||
Purchase of treasury stock | (30,956 | ) | (33,439 | ) | (36,242 | ) | ||||||
Stock option tax benefit | — | — | 1 | |||||||||
Net cash used in financing activities | (57,003 | ) | (90,421 | ) | (54,064 | ) | ||||||
Net increase (decrease) in cash | 2,032 | (11,123 | ) | 13,117 | ||||||||
Cash at beginning of year | 8,370 | 19,493 | 6,376 | |||||||||
Cash at end of year | $ | 10,402 | $ | 8,370 | $ | 19,493 | ||||||
Cash dividends declared per common share were $0.28 for 2014, $0.23 for 2013 and $0.18 for 2012. | ||||||||||||
First Commonwealth Financial Corporation has an unsecured $15.0 million line of credit with another financial institution. As of December 31, 2014, there are no amounts outstanding on this line. We are currently not meeting a debt covenant related to Return on Average Assets; however, a waiver has been received from the lender for this covenant. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
On January 27, 2015, an additional share repurchase program was authorized by the Board of Directors for up to $25.0 million in shares of the Company’s common stock. Under this program, management is authorized to repurchase shares through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. Depending on market conditions and other factors, repurchases may be made at any time or from time to time, without prior notice. First Commonwealth may suspend or discontinue the program at any time. |
Statement_of_Accounting_Polici1
Statement of Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
General | General | |
The following summary of accounting and reporting policies is presented to aid the reader in obtaining a better understanding of the consolidated financial statements of First Commonwealth Financial Corporation and its subsidiaries (“First Commonwealth”) contained in this report. | ||
The financial information is presented in accordance with generally accepted accounting principles and general practice for financial institutions in the United States of America. In preparing financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. In addition, these estimates and assumptions affect revenues and expenses in the financial statements and as such, actual results could differ from those estimates. | ||
Through its subsidiaries, which include one commercial bank, an insurance agency and a financial advisor, First Commonwealth provides a full range of loan, deposit, trust, insurance and personal financial planning services primarily to individuals and small to middle market businesses in fifteen counties in central and western Pennsylvania. First Commonwealth has determined that it has one business segment. | ||
First Commonwealth is subject to regulations of certain state and federal agencies. These regulatory agencies periodically examine First Commonwealth for adherence to laws and regulations. | ||
Basis of Presentation | Basis of Presentation | |
The accompanying Consolidated Financial Statements include the accounts of First Commonwealth previously defined above. All material intercompany transactions have been eliminated in consolidation. | ||
Equity investments of less than a majority but at least 20% ownership are accounted for by the equity method and classified as “Other assets.” Earnings on these investments are reflected in “Other income” on the Consolidated Statements of Income, as appropriate, in the period earned. | ||
First Commonwealth’s variable interest entities (“VIEs”) are evaluated under the guidance included in ASU 2009-17. These VIEs include qualified affordable housing projects that First Commonwealth has invested in as part of its community reinvestment initiatives and vehicles that issue trust preferred securities. We periodically assess whether or not our variable interests in these VIEs, based on qualitative analysis, provide us with a controlling interest in the VIE. The analysis includes an assessment of the characteristics of the VIE. We do not have a controlling financial interest in the VIE, which would require consolidation of the VIE, as we do not have the following characteristics: (1) the power to direct the activities that most significantly impact the VIE’s economic performance; and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||
Securities | Securities | |
Debt securities that First Commonwealth has the positive intent and ability to hold to maturity are classified as securities held to maturity and are reported at amortized cost adjusted for amortization of premium and accretion of discount on a level yield basis. Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are to be classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as securities available for sale and are reported at fair value, with unrealized gains and losses that are not related to impairment excluded from earnings and reported as a component of other comprehensive income, which is included in shareholders’ equity, net of deferred taxes. | ||
First Commonwealth has securities classified as available for sale and does not engage in trading activities. First Commonwealth utilizes the specific identification method to determine the net gain or loss on debt securities and the average cost method to determine the net gain or loss on the equity securities. | ||
First Commonwealth conducts a comprehensive review of the investment portfolio on a quarterly basis to determine whether other-than-temporary impairment has occurred. Issuer-specific securities whose market values have fallen below their book values are initially selected for more in-depth analysis based on the percentage decline in value and duration of the decline. Issuer-specific securities include obligations of U.S. Government agencies and sponsored enterprises, single issue trust preferred securities, corporate debentures and obligations of states and political subdivisions. Further analysis of these securities includes a review of research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, impact of interest rate changes and any other relevant information pertaining to the affected security. Pooled trust preferred collateralized debt obligations are measured by evaluating all relevant credit and structural aspects, determining appropriate performance assumptions and performing a discounted cash flow analysis. This evaluation includes detailed credit, performance and structural evaluations for each piece of collateral. Other factors in the pooled trust preferred collateralized debt obligations valuation include terms of the structure, the cash flow waterfall (for both interest and principal), the over collateralization and interest coverage tests and events of default/liquidation. Based on this review, a determination is made on a case by case basis as to a potential impairment. Declines in the fair value of individual securities below their cost that are not expected to be recovered will result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as impairment losses. | ||
Loans | Loans | |
Loans are carried at the principal amount outstanding. Interest is accrued as earned. Loans held for sale are carried at the lower of cost or fair value determined on an individual basis. | ||
First Commonwealth considers a loan to be past due and still accruing interest when payment of interest or principal is contractually past due but the loan is both well secured and in the process of collection. For installment, mortgage, term and other loans with amortizing payments that are scheduled monthly, 90 days past due is reached when four monthly payments are due and unpaid. For demand, time and other multi-payment obligations with payments scheduled other than monthly, delinquency status is calculated using number of days instead of number of payments. Revolving credit loans, including personal credit lines and home equity lines, are considered to be 90 days past due when the borrower has not made the minimum payment for four monthly cycles. | ||
A loan is placed in nonaccrual status when, based on current information and events, it is probable that First Commonwealth will be unable to fully collect principal or interest due according to the contractual terms of the loan. A loan is also placed in nonaccrual status when, based on regulatory definitions, the loan is maintained on a “cash basis” due to the weakened financial condition of the borrower. When a determination is made to place a loan in nonaccrual status, all accrued and unpaid interest is reversed. Nonaccrual loans are restored to accrual status when, based on a sustained period of repayment by the borrower in accordance with the contractual terms of the loan, First Commonwealth expects repayment of the remaining contractual principal and interest or when the loan otherwise becomes well-secured and in the process of collection. | ||
First Commonwealth considers a loan to be a troubled debt restructured loan when the loan terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources. | ||
A loan is considered to be impaired when, based on current information and events, it is probable that First Commonwealth will be unable to collect principal or interest that is due in accordance with contractual terms of the loan. Impaired loans include nonaccrual loans and troubled debt restructured loans. Loan impairment is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. | ||
For loans other than those that First Commonwealth expects repayment through liquidation of the collateral, when the remaining recorded investment in the impaired loan is less than or equal to the present value of the expected cash flows, income is applied as a reduction to loan principal rather than interest income. | ||
Loans deemed uncollectible are charged off through the allowance for credit losses. Factors considered in assessing ultimate collectibility include past due status, financial condition of the borrower, collateral values and debt covenants including secondary sources of repayment by guarantors. Payments received on previously charged off loans are recorded as recoveries in the allowance for credit losses. | ||
Loan Fees | Loan Fees | |
Loan origination and commitment fees, net of associated direct costs, are deferred and the net amount is amortized as an adjustment to the related loan yield on the interest method, generally over the contractual life of the related loans or commitments. | ||
Other Real Estate Owned | Other Real Estate Owned | |
Real estate, other than bank premises, is recorded at fair value less estimated selling costs at the time of acquisition. After that time, other real estate is carried at the lower of cost or fair value less estimated costs to sell. Fair value is determined based on an independent appraisal. Expenses related to holding the property and rental income earned on the property are generally reflected in earnings in the current period. Depreciation is not recorded on the other real estate owned properties. | ||
Allowance for Credit Losses | Allowance for Credit Losses | |
First Commonwealth maintains an allowance for credit losses at a level deemed sufficient to absorb losses that are inherent in the loan portfolio. First Commonwealth’s management determines and reviews with the Board of Directors the adequacy of the allowance on a quarterly basis to ensure that the provision for credit losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. First Commonwealth’s methodology for assessing the appropriateness of the allowance for credit losses consists of several key elements. These elements include an assessment of individual problem loans, delinquency and loss experience trends, and other relevant factors, all of which may be susceptible to significant changes. | ||
The major loan classifications used in the allowance for credit losses calculation include pass, other assets especially mentioned (“OAEM”), substandard and doubtful. Additional information related to these credit quality categories is provided in Note 10, "Loans and Allowance for Credit Losses." | ||
First Commonwealth consistently applies the following comprehensive methodology and procedure for determining the allowance for credit losses. | ||
All impaired credits in excess of $100 thousand are individually reviewed quarterly. A specific reserve is established for impaired loans that is equal to the total amount of probable unconfirmed losses for the impaired loans that are reviewed. Based on this reserve as a percentage of reviewed loan balances, a reserve is also established for the impaired loan balances that are not individually reviewed. | ||
The allowance calculation uses historical charge-off trends to estimate probable unconfirmed losses for each loan category. A multiplier known as the emergence factor is applied to the historical loss rates for non-criticized loans. The emergence factor is calculated by loan category and represents the average time period from when a loan was given a non-pass rating until the bank experiences a charge-off against the loan.. Before applying the adjusted historical loss experience percentages, loan balances are reduced by the portion of the loan balances which are subject to guarantee by a government agency. | ||
An additional component of the allowance is determined by management based on a qualitative analysis of certain factors related to portfolio risks and economic conditions. Factors considered by management include employment trends, macroeconomic trends, commercial real estate trends and the overall lending environment. Portfolio risks include unusual changes or recent trends in specific portfolios such as unexpected changes in the trends or levels of delinquency. No matter how detailed an analysis of potential credit losses is performed, these estimates are inherently not precise. Management must make estimates using assumptions and information that is often subjective and changes rapidly. | ||
Allowance for Off-Balance Sheet Credit Exposures | Allowance for Off-Balance Sheet Credit Exposures | |
First Commonwealth maintains an allowance for off-balance sheet credit exposure at a level deemed sufficient to absorb losses that are inherent to off-balance sheet credit risk. Management determines the adequacy of the allowance on a quarterly basis, charging the provision against earnings in an amount necessary to maintain the allowance at a level that is appropriate based on management’s assessment of probable estimated losses. The Company’s methodology for assessing the appropriateness of the allowance for off-balance sheet credit exposure consists of analysis of historical usage trends as well as loss history and probability of default rates related to the off-balance sheet category. The calculation begins with historical usage trends related to lines of credit as well as letters of credit and then utilizes those figures to determine the probable usage of available lines. These values are then adjusted by a determined probability of default as well as a loss given default. This amount is adjusted quarterly and reported as part of other operating expenses on the Consolidated Statements of Income. | ||
Bank Owned Life Insurance | Bank Owned Life Insurance | |
First Commonwealth and the banks that First Commonwealth has acquired have purchased insurance on the lives of certain groups of employees. The policies accumulate asset values to meet future liabilities, including the payment of employee benefits such as health care. Increases in the cash surrender value are recorded as non-interest income in the Consolidated Statements of Income. Under some of these policies, the beneficiaries receive a portion of the death benefit. | ||
Premises and Equipment | Premises and Equipment | |
Premises and equipment are carried at cost less accumulated depreciation on First Commonwealth’s Consolidated Statements of Financial Condition. Depreciation is computed on the straight-line and accelerated methods over the estimated useful life of the asset. A straight-line depreciation method was used for substantially all furniture and equipment. The straight-line depreciation method was used for buildings and improvements. Charges for maintenance and repairs are expensed as incurred. Leasehold improvements are expensed over the term of the lease or the estimated useful life of the improvement, whichever is shorter. | ||
Software costs are amortized on a straight-line basis over a period not to exceed seven years | ||
Goodwill | Goodwill | |
Intangible assets resulting from acquisitions under the purchase method of accounting consist of goodwill and other intangible assets (see “Other Intangible Assets” section below). Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. First Commonwealth reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if our fair value has fallen below carrying value. | ||
Other Intangible Assets | Other Intangible Assets | |
Other intangible assets consist of core deposits and customer lists obtained through acquisitions. Core deposit intangibles are amortized over their estimated lives using the present value of the benefit of the core deposits and straight-line methods of amortization. Customer list intangibles are amortized over the expected lives using expected cash flows based on retention of the customer base. These intangibles are evaluated for impairment on an annual basis and when events or changes in circumstances indicate that the carrying amount may not be recoverable. | ||
Accounting for the Impairment of Long-Lived Assets | Accounting for the Impairment of Long-Lived Assets | |
First Commonwealth reviews long-lived assets, such as premises and equipment and intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These changes in circumstances may include a significant decrease in the market value of an asset or the extent or manner in which an asset is used. If there is an indication that the carrying amount of an asset may not be recoverable, future undiscounted cash flows expected to result from the use of the asset are estimated. If the sum of the expected cash flows is less than the carrying value of the asset, a loss is recognized for the difference between the carrying value and fair value of the asset. Long-lived assets classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. Depreciation or amortization is discontinued on long-lived assets classified as held for sale. | ||
Income Taxes | Income Taxes | |
First Commonwealth records taxes in accordance with the asset and liability method of FASB ASC Topic 740, “Income Taxes,” whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases given the provisions of the enacted tax laws. Deferred tax assets are reduced, if necessary, by the amount of such benefits that are more likely than not expected to be realized based upon available evidence. In accordance with FASB ASC Topic 740, interest or penalties incurred for taxes will be recorded as a component of noninterest expense. | ||
Comprehensive Income Disclosures | Comprehensive Income Disclosures | |
“Other Comprehensive Income” (comprehensive income, excluding net income) includes the after-tax effect of changes in unrealized holding gains and losses on available-for-sale securities, changes in the funded status of defined benefit postretirement plans and changes in the fair value of the effective portion of cash flow hedges. Comprehensive income is reported in the accompanying Consolidated Statements of Comprehensive Income, net of tax. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and interest-bearing bank deposits. Generally, federal funds are sold for one-day periods. | ||
Employee Stock Ownership Plan | Employee Stock Ownership Plan | |
Accounting treatment for First Commonwealth’s Employee Stock Ownership Plan (“ESOP”) described in Note 22 “Unearned ESOP Shares” follows FASB ASC Topic 718, “Compensation—Stock Compensation” for ESOP shares acquired after December 31, 1992 (“new shares”). First Commonwealth’s ESOP borrowed funds were guaranteed by First Commonwealth. The ESOP shares purchased subject to the debt guaranteed by First Commonwealth were recorded as a reduction of common shareholders’ equity by recording unearned ESOP shares. Shares were committed to be released to the ESOP Trust for allocation to plan participants through loan payments. As the shares were committed to be released, the unearned ESOP shares account was credited for the average cost of the shares collateralizing the ESOP borrowed funds. Compensation cost was recognized for these shares in accordance with the provisions of FASB ASC Topic 718 and was based upon the fair market value of the shares that were committed to be released. Additional paid-in capital was charged or credited for the difference between the fair value of the shares committed to be released and the cost of those shares to the ESOP. The borrowed funds related to the unearned ESOP shares were paid off in November 2012. | ||
Dividends on unallocated ESOP shares were used for debt service and are reported as a reduction of debt and accrued interest payable. Dividends on allocated ESOP shares were charged to retained earnings and allocated or paid to the plan participants. The average number of common shares outstanding used in calculating earnings per share excludes all unallocated ESOP shares. | ||
Derivatives and Hedging Activities | Derivatives and Hedging Activities | |
First Commonwealth accounts for derivative instruments and hedging activities in accordance with FASB ASC Topic 815, “Derivatives and Hedging.” All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities, and appropriate documentation is maintained to support the final determination. First Commonwealth recognizes all derivatives as either assets or liabilities on the Consolidated Statements of Financial Condition and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in OCI. When the cash flows associated with the hedged item are realized, the gain or loss included in OCI is recognized in the Consolidated Statement of Income. | ||
When First Commonwealth purchases a portion of a commercial loan that has an existing interest rate swap, it enters a Risk Participation Agreement with the counterparty and assumes the credit risk of the loan customer related to the swap. Any fee paid to First Commonwealth as a result of the risk participation agreement is offset by credit risk of the counterparties and is recognized in the income statement. Credit risk on the risk participation agreements is determined after considering the risk rating, probability of default and loss given default of the counterparties. | ||
Management periodically reviews contracts from various functional areas of First Commonwealth to identify potential derivatives embedded within selected contracts. As of December 31, 2014, First Commonwealth has interest derivative positions that are not designated as hedging instruments. See Note 7, “Derivatives,” for a description of these instruments. | ||
Earnings Per Common Share | Earnings Per Common Share | |
Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period less any unallocated ESOP shares. | ||
Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For all periods presented, the dilutive effect on average shares outstanding is the result of compensatory stock options outstanding and unvested restricted stock grants. | ||
Fair Value Measurements | Fair Value Measurements | |
In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” First Commonwealth groups financial assets and financial liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | ||
• | Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 1 securities include equity holdings comprised of publicly traded bank stocks which were priced using quoted market prices. | |
• | Level 2—Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained for identical or comparable assets or liabilities from alternative pricing sources with reasonable levels of price transparency. Level 2 securities include U.S. Government securities issued by Agencies and Sponsored Enterprises, Obligations of States and Political Subdivisions, certain corporate securities, FHLB stock, interest rate derivatives that include interest rate swaps, risk participation agreements and foreign currency contracts, certain other real estate owned and certain impaired loans. | |
• | Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. If the inputs used to provide the evaluation are unobservable and/or there is very little, if any, market activity for the security or similar securities, the securities would be considered Level 3 securities. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The assets included in Level 3 are select Obligations of States and Political Subdivisions, corporate securities, pooled trust preferred collateralized debt obligations, nonmarketable equity investments, certain other real estate owned, certain impaired loans and loans held for sale. | |
In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon pricing models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. See Note 19 “Fair Values of Assets and Liabilities” for additional information. | ||
New Accounting Pronouncements, Policy | New Accounting Pronouncements | |
In January 2014, the FASB issued ASU 2014-01, "Investments - Equity Method and Joint Ventures (Topic 323)," which permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The proportional amortization method allows an entity to amortize the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). This amendment is effective for interim and annual periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. | ||
In January 2014, the FASB issued ASU 2014-04, "Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40)." This amendment clarifies that an in-substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of property upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction are required. This amendment is effective for annual periods beginning after December 15, 2014 and for interim periods within annual periods beginning after December 15, 2015. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. | ||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360)." This amendment changes the reporting requirements for discontinued operations. A disposal of a component of an entity or group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift resulting in a major effect on the entity's operations and financial results when any of the following occurs: (1) the component or group of components of an entity meets the criteria to be classified as held for sale, (2) the component or group of components of an entity is disposed of by sale, or (3) the component or group of components of an entity is disposed of other than by sale. If one of these criteria are met, the entity will present the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections of the statement of financial position for each comparative period along with additional footnote disclosure. This amendment is effective for annual periods beginning on or after December 15, 2014 and interim periods within annual periods beginning on or after December 15, 2015. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. | ||
In May 2014, the FASB issued Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early adoption is not permitted. First Commonwealth is evaluating the impact of the adoption of this ASU on financial condition and results of operation.. | ||
In June 2014, the FASB issued ASU 2014-11, "Transfers and Servicing (Topic 860)," which requires two accounting changes. One changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting and the other requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty in regards to repurchase financing arrangements, which will result in secured borrowing accounting for the repurchase agreement. The ASU requires disclosure for certain transactions comprising a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to economic return. The amendment also requires disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. This amendment will be effective for public entities for the first interim or annual period beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. | ||
In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718)," which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. This amendment is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015 with earlier adoption permitted. 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 2014, the FASB issued ASU No. 2014-14, "Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure." These amendments address the diversity in practice regarding the classification and measurement of foreclosed loans which were part of a government-sponsored loan guarantee program (e.g., HUD, FHA, VA). The ASU outlines certain criteria that, if met, the loan (residential or commercial) should be derecognized and a separate other receivable should be recorded upon foreclosure at the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This ASU will be effective for annual reporting periods beginning after December 15, 2014, including interim periods within that reporting period. Early adoption is permitted, provided the entity has adopted ASU 2014-04. The ASU should be adopted either prospectively or on a modified retrospective basis. 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 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern (Topic 205-40)," which requires management to evaluate, for each annual and interim period, whether conditions or events, considered in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. When management identifies conditions or events that raise substantial doubt regarding an entity's ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. Certain footnote disclosures are required, the nature of which depends on if substantial doubt is alleviated as a result of consideration of management's plan. This amendment is effective for the annual period ending after December 15, 2016 and for annual and interim periods thereafter. The adoption of this ASU is not expected to have a material impact on First Commonwealth’s financial condition or results of operations. |
Supplemental_Comprehensive_Inc1
Supplemental Comprehensive Income Disclosures (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Supplemental Comprehensive Income Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | The following table identifies the related tax effects allocated to each component of other comprehensive income in the Consolidated Statements of Comprehensive Income as of December 31. Reclassification adjustments related to securities available for sale are included in the "Net securities gains" line in the Consolidated Statements of Income and reclassification adjustments related to losses on derivatives are included in the "Other operating expenses" line in the Condensed Consolidated Statements of Income. | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Pretax Amount | Tax (Expense) Benefit | Net of Tax Amount | Pretax Amount | Tax (Expense) Benefit | Net of Tax Amount | Pretax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on securities: | ||||||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 25,153 | $ | (8,803 | ) | $ | 16,350 | $ | (34,975 | ) | $ | 12,233 | $ | (22,742 | ) | $ | (661 | ) | $ | 238 | $ | (423 | ) | |||||||||||||
Reclassification adjustment for (gains) losses on securities included in net income | (550 | ) | 193 | (357 | ) | 1,158 | (405 | ) | 753 | (192 | ) | 67 | (125 | ) | ||||||||||||||||||||||
Total unrealized gains (losses) on securities | 24,603 | (8,610 | ) | 15,993 | (33,817 | ) | 11,828 | (21,989 | ) | (853 | ) | 305 | (548 | ) | ||||||||||||||||||||||
Unrealized gains (losses) on derivatives: | ||||||||||||||||||||||||||||||||||||
Unrealized holding gains on derivatives arising during the period | 472 | (165 | ) | 307 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Reclassification adjustment for gains on derivatives included in net income | (10 | ) | 3 | (7 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Total unrealized gains on derivatives | 462 | (162 | ) | 300 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Unrealized (losses) gains for postretirement obligations: | ||||||||||||||||||||||||||||||||||||
Transition obligation | — | — | — | — | — | — | 2 | (1 | ) | 1 | ||||||||||||||||||||||||||
Net (loss) gain | (313 | ) | 109 | (204 | ) | 219 | (77 | ) | 142 | (300 | ) | 105 | (195 | ) | ||||||||||||||||||||||
Total unrealized (losses) gains for postretirement obligations | (313 | ) | 109 | (204 | ) | 219 | (77 | ) | 142 | (298 | ) | 104 | (194 | ) | ||||||||||||||||||||||
Total other comprehensive income (loss) | $ | 24,752 | $ | (8,663 | ) | $ | 16,089 | $ | (33,598 | ) | $ | 11,751 | $ | (21,847 | ) | $ | (1,151 | ) | $ | 409 | $ | (742 | ) | |||||||||||||
The following table sets forth the amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit costs as of December 31: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net (gain) loss | $ | (76 | ) | $ | (280 | ) | $ | (138 | ) | |||||||||||||||||||||||||||
Transition obligation | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | (76 | ) | $ | (280 | ) | $ | (138 | ) | |||||||||||||||||||||||||||
Related Tax Effects Allocated to Each Component of Other Comprehensive Income | The following table details the change in components of OCI for the year-ended December 31: | |||||||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||||||
Securities Available for Sale | Derivatives | Post-Retirement Obligation | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Balance at January 1 | $ | (20,868 | ) | $ | — | $ | 280 | $ | (20,588 | ) | ||||||||||||||||||||||||||
Other comprehensive income before reclassification adjustment | 16,350 | 307 | 16,657 | |||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (357 | ) | (7 | ) | (364 | ) | ||||||||||||||||||||||||||||||
Transition obligation | — | — | ||||||||||||||||||||||||||||||||||
Net gain | (204 | ) | (204 | ) | ||||||||||||||||||||||||||||||||
Net other comprehensive income during the period | 15,993 | 300 | (204 | ) | 16,089 | |||||||||||||||||||||||||||||||
Balance at December 31 | $ | (4,875 | ) | $ | 300 | $ | 76 | $ | (4,499 | ) | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Securities Available for Sale | Derivatives | Post-Retirement Obligation | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 1,121 | $ | — | $ | 138 | $ | 1,259 | ||||||||||||||||||||||||||||
Other comprehensive income before reclassification adjustment | (22,742 | ) | — | (22,742 | ) | |||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 753 | — | 753 | |||||||||||||||||||||||||||||||||
Transition obligation | — | — | ||||||||||||||||||||||||||||||||||
Net gain | 142 | 142 | ||||||||||||||||||||||||||||||||||
Net other comprehensive income during the period | (21,989 | ) | — | 142 | (21,847 | ) | ||||||||||||||||||||||||||||||
Balance at December 31 | $ | (20,868 | ) | $ | — | $ | 280 | $ | (20,588 | ) | ||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Securities Available for Sale | Derivatives | Post-Retirement Obligation | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 1,669 | $ | — | $ | 332 | $ | 2,001 | ||||||||||||||||||||||||||||
Other comprehensive income before reclassification adjustment | (423 | ) | — | (423 | ) | |||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (125 | ) | — | (125 | ) | |||||||||||||||||||||||||||||||
Transition obligation | 1 | 1 | ||||||||||||||||||||||||||||||||||
Net gain | (195 | ) | (195 | ) | ||||||||||||||||||||||||||||||||
Net other comprehensive income during the period | (548 | ) | — | (194 | ) | (742 | ) | |||||||||||||||||||||||||||||
Balance at December 31 | $ | 1,121 | $ | — | $ | 138 | $ | 1,259 | ||||||||||||||||||||||||||||
Supplemental_Cash_Flow_Disclos1
Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Non-cash Investing and Financing Activities | The following table presents information related to cash paid during the year for interest and income taxes as well as detail on non-cash investing and financing activities for the years ended December 31: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 18,943 | $ | 23,022 | $ | 31,597 | ||||||
Income taxes | 10,700 | 3,080 | 11,641 | |||||||||
Non-cash investing and financing activities: | ||||||||||||
ESOP loan reductions | $ | — | $ | — | $ | 1,600 | ||||||
Loans transferred to other real estate owned and repossessed assets | 5,061 | 12,326 | 4,979 | |||||||||
Other real estate owned sold and settled out of period | — | 348 | — | |||||||||
Fair value of loans transferred from held to maturity to available for sale | 3,035 | 20,135 | — | |||||||||
Gross increase (decrease) in market value adjustment to securities available for sale | 24,601 | (33,792 | ) | (874 | ) | |||||||
Unsettled treasury stock repurchases | — | — | 1,222 | |||||||||
Contribution of premises | 682 | — | — | |||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||
Composition of Weighted-Average Common Shares (Denominator) Used in Basic and Diluted Earnings Per Share | The following table summarizes the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the years ending December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Weighted average common shares issued | 105,563,455 | 105,563,455 | 105,563,455 | ||||||||||||||||||||||||||||||
Average treasury shares | (12,294,217 | ) | (8,363,083 | ) | (1,456,953 | ) | |||||||||||||||||||||||||||
Averaged unearned ESOP shares | — | — | (38,393 | ) | |||||||||||||||||||||||||||||
Average unearned nonvested shares | (154,584 | ) | (172,215 | ) | (182,713 | ) | |||||||||||||||||||||||||||
Weighted average common shares and common stock equivalents used to calculate basic earnings per share | 93,114,654 | 97,028,157 | 103,885,396 | ||||||||||||||||||||||||||||||
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share | — | 1,675 | 171 | ||||||||||||||||||||||||||||||
Additional common stock equivalents (stock options) used to calculate diluted earnings per share | — | — | 96 | ||||||||||||||||||||||||||||||
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share | 93,114,654 | 97,029,832 | 103,885,663 | ||||||||||||||||||||||||||||||
Common Stock Equivalents Not Included in Computation of Diluted Earnings Per Share | The following table shows the number of shares and the price per share related to common stock equivalents that were not included in the computation of diluted earnings per share for the years ended December 31, because to do so would have been anti-dilutive. | ||||||||||||||||||||||||||||||||
12/31/14 | 12/31/13 | 12/31/12 | |||||||||||||||||||||||||||||||
Price Range | Price Range | Price Range | |||||||||||||||||||||||||||||||
Shares | From | To | Shares | From | To | Shares | From | To | |||||||||||||||||||||||||
Stock Options | 15,000 | $ | 14.55 | $ | 14.55 | 27,000 | $ | 14.41 | $ | 14.55 | 268,630 | $ | 6.9 | $ | 14.55 | ||||||||||||||||||
Restricted Stock | 106,977 | 5.26 | 9.26 | 81,770 | 4.41 | 7.57 | 163,509 | 5.26 | 6.82 | ||||||||||||||||||||||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Credit Value Adjustment Recorded Related to Notional Amount of Derivatives Outstanding | The following table depicts the credit value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of risk participation agreements participated to other banks at December 31: | |||||||||||
2014 | 2013 | |||||||||||
(dollars in thousands) | ||||||||||||
Derivatives not Designated as Hedging Instruments | ||||||||||||
Credit value adjustment | $ | (268 | ) | $ | 77 | |||||||
Notional Amount: | ||||||||||||
Interest rate derivatives | 273,388 | 274,718 | ||||||||||
Interest rate caps | 6,656 | 7,500 | ||||||||||
Risk participation agreements | 113,624 | 82,197 | ||||||||||
Sold credit protection on risk participation agreements | (17,296 | ) | (19,161 | ) | ||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||
Fair value adjustment | 472 | — | ||||||||||
Notional Amount - Interest rate derivatives | 100,000 | — | ||||||||||
Schedule of Change in Fair Value of Derivative Assets and Liabilities | The table below presents the amount representing the change in the fair value of derivative assets and derivative liabilities attributable to credit risk included in “Other income” on the Consolidated Statements of Income for the years ended December 31: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
Non-hedging interest rate derivatives: | ||||||||||||
(Decrease) increase in other income | $ | (345 | ) | $ | 1,428 | $ | 755 | |||||
Hedging interest rate derivatives: | ||||||||||||
Increase in interest income | 330 | — | — | |||||||||
Increase in other income | 10 | — | — | |||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||
Analysis of Amortized Cost and Estimated Fair Values of Securities Available for Sale | Below is an analysis of the amortized cost and fair values of securities available for sale at December 31: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cost | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||||||
Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Obligations of U.S. Government Agencies: | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | $ | 23,344 | $ | 2,595 | $ | (3 | ) | $ | 25,936 | $ | 22,639 | $ | 2,624 | $ | (59 | ) | $ | 25,204 | ||||||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | 947,635 | 13,076 | (9,830 | ) | 950,881 | 1,009,519 | 12,531 | (27,163 | ) | 994,887 | ||||||||||||||||||||||
Mortgage-Backed Securities – Commercial | 72 | 2 | — | 74 | 104 | 1 | — | 105 | ||||||||||||||||||||||||
Other Government-Sponsored Enterprises | 269,181 | 4 | (1,308 | ) | 267,877 | 267,971 | 81 | (1,927 | ) | 266,125 | ||||||||||||||||||||||
Obligations of States and Political Subdivisions | 27,058 | 362 | (43 | ) | 27,377 | 80 | — | — | 80 | |||||||||||||||||||||||
Corporate Securities | 6,682 | 573 | — | 7,255 | 6,693 | 328 | — | 7,021 | ||||||||||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | 41,926 | 309 | (13,236 | ) | 28,999 | 42,040 | — | (18,517 | ) | 23,523 | ||||||||||||||||||||||
Total Debt Securities | 1,315,898 | 16,921 | (24,420 | ) | 1,308,399 | 1,349,046 | 15,565 | (47,666 | ) | 1,316,945 | ||||||||||||||||||||||
Equities | 1,420 | — | — | 1,420 | 1,420 | — | — | 1,420 | ||||||||||||||||||||||||
Total Securities Available for Sale | $ | 1,317,318 | $ | 16,921 | $ | (24,420 | ) | $ | 1,309,819 | $ | 1,350,466 | $ | 15,565 | $ | (47,666 | ) | $ | 1,318,365 | ||||||||||||||
The amortized cost and fair value of debt securities at December 31, 2014, by contractual maturity, are shown below: | ||||||||||||||||||||||||||||||||
Amortized | Estimated | |||||||||||||||||||||||||||||||
Cost | Fair Value | |||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Due within 1 year | $ | 3,000 | $ | 2,998 | ||||||||||||||||||||||||||||
Due after 1 but within 5 years | 266,181 | 264,879 | ||||||||||||||||||||||||||||||
Due after 5 but within 10 years | 21,849 | 22,104 | ||||||||||||||||||||||||||||||
Due after 10 years | 53,817 | 41,527 | ||||||||||||||||||||||||||||||
344,847 | 331,508 | |||||||||||||||||||||||||||||||
Mortgage-Backed Securities (a) | 971,051 | 976,891 | ||||||||||||||||||||||||||||||
Total Debt Securities | $ | 1,315,898 | $ | 1,308,399 | ||||||||||||||||||||||||||||
(a) | Mortgage Backed Securities include an amortized cost of $23.3 million and a fair value of $25.9 million for Obligations of U.S. Government agencies issued by Ginnie Mae and Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac, which had an amortized cost of $947.7 million and a fair value of $951.0 million. | |||||||||||||||||||||||||||||||
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 years ended December 31: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Proceeds from sales | $ | 132,868 | $ | 671 | $ | — | ||||||||||||||||||||||||||
Gross (losses) gains realized: | ||||||||||||||||||||||||||||||||
Sales Transactions: | ||||||||||||||||||||||||||||||||
Gross gains | $ | 291 | $ | 233 | $ | — | ||||||||||||||||||||||||||
Gross losses | (243 | ) | — | — | ||||||||||||||||||||||||||||
48 | 233 | — | ||||||||||||||||||||||||||||||
Maturities and impairment | ||||||||||||||||||||||||||||||||
Gross gains | 502 | 4 | 192 | |||||||||||||||||||||||||||||
Gross losses | — | (1,395 | ) | — | ||||||||||||||||||||||||||||
Other-than-temporary impairment | — | — | — | |||||||||||||||||||||||||||||
502 | (1,391 | ) | 192 | |||||||||||||||||||||||||||||
Net gains and impairment | $ | 550 | $ | (1,158 | ) | $ | 192 | |||||||||||||||||||||||||
Impairment_of_Investment_Secur1
Impairment of Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
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, 2014 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 | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Obligations of U.S. Government Agencies: | |||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | $ | 2,318 | $ | (3 | ) | $ | — | $ | — | $ | 2,318 | $ | (3 | ) | |||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | |||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | 111,646 | (419 | ) | 368,706 | (9,411 | ) | 480,352 | (9,830 | ) | ||||||||||||||||
Other Government-Sponsored Enterprises | 112,473 | (229 | ) | 130,401 | (1,079 | ) | 242,874 | (1,308 | ) | ||||||||||||||||
Obligations of States and Political Subdivisions | 3,146 | (43 | ) | — | — | 3,146 | (43 | ) | |||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | — | — | 24,356 | (13,236 | ) | 24,356 | (13,236 | ) | |||||||||||||||||
Total Securities Available for Sale | $ | 229,583 | $ | (694 | ) | $ | 523,463 | $ | (23,726 | ) | $ | 753,046 | $ | (24,420 | ) | ||||||||||
At December 31, 2014, pooled trust preferred collateralized debt obligations accounted for 54% of unrealized losses due to changes in interest rates and the illiquid market for this type of investment. Fixed income securities issued by U.S. Government-sponsored enterprises comprised 46% of total unrealized losses due to changes in market interest rates. There were no equity securities in an unrealized loss position at December 31, 2014. | |||||||||||||||||||||||||
The following table presents the gross unrealized losses and estimated fair value at December 31, 2013 for available-for-sale and 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 | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Obligations of U.S. Government Agencies: | |||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | $ | 2,035 | $ | (59 | ) | $ | — | $ | — | $ | 2,035 | $ | (59 | ) | |||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | |||||||||||||||||||||||||
Mortgage-Backed Securities – Residential | 632,231 | (22,844 | ) | 65,324 | (4,319 | ) | 697,555 | (27,163 | ) | ||||||||||||||||
Other Government-Sponsored Enterprises | 183,542 | (1,448 | ) | 24,501 | (479 | ) | 208,043 | (1,927 | ) | ||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | 2,401 | (237 | ) | 21,122 | (18,280 | ) | 23,523 | (18,517 | ) | ||||||||||||||||
Total Securities Available for Sale | $ | 820,209 | $ | (24,588 | ) | $ | 110,947 | $ | (23,078 | ) | $ | 931,156 | $ | (47,666 | ) | ||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | The following table provides additional information related to our pooled trust preferred collateralized debt obligations as of December 31, 2014: | ||||||||||||||||||||||||
Deal | Class | Book | Estimated Fair | Unrealized | Moody’s/ | Number | Deferrals | Excess | |||||||||||||||||
Value | Value | Gain | Fitch | of | and | Subordination | |||||||||||||||||||
(Loss) | Ratings | Banks | Defaults | as a % of | |||||||||||||||||||||
as a % of | Current | ||||||||||||||||||||||||
Current | Performing | ||||||||||||||||||||||||
Collateral | Collateral | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Pre TSL IV | Mezzanine | $ | 1,830 | $ | 1,326 | $ | (504 | ) | B1/BB | 6 | 18.05 | % | 54.84 | % | |||||||||||
Pre TSL V | Mezzanine | 60 | 130 | 70 | C/- | 3 | 100 | 0 | |||||||||||||||||
Pre TSL VII | Mezzanine | 2,779 | 2,987 | 208 | Ca/- | 14 | 49.68 | 0 | |||||||||||||||||
Pre TSL VIII | Mezzanine | 1,970 | 1,305 | (665 | ) | C/C | 29 | 59.12 | 0 | ||||||||||||||||
Pre TSL IX | Mezzanine | 2,340 | 1,442 | (898 | ) | B3/C | 39 | 28.91 | 6.73 | ||||||||||||||||
Pre TSL X | Mezzanine | 1,495 | 1,526 | 31 | Caa1/C | 44 | 31.03 | 0 | |||||||||||||||||
Pre TSL XII | Mezzanine | 5,523 | 3,361 | (2,162 | ) | B3/C | 66 | 26.96 | 0 | ||||||||||||||||
Pre TSL XIII | Mezzanine | 12,464 | 8,455 | (4,009 | ) | Caa1/C | 57 | 19.26 | 30.97 | ||||||||||||||||
Pre TSL XIV | Mezzanine | 13,035 | 8,081 | (4,954 | ) | Caa1/C | 56 | 24.54 | 36.53 | ||||||||||||||||
MMCap I | Mezzanine | 430 | 386 | (44 | ) | Ca/C | 11 | 59.52 | 20.89 | ||||||||||||||||
Total | $ | 41,926 | $ | 28,999 | $ | (12,927 | ) | ||||||||||||||||||
Cumulative Roll Forward of Credit Losses Recognized in Earnings for Debt Securities Held and Not Intended to be Sold | The table below provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the years ended December 31: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Balance, beginning (a) | $ | 27,543 | $ | 43,274 | $ | 44,736 | |||||||||||||||||||
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) | (1,297 | ) | (2,375 | ) | (1,462 | ) | |||||||||||||||||||
Reduction for debt securities called during the period | — | (13,356 | ) | — | |||||||||||||||||||||
Balance, ending | $ | 26,246 | $ | 27,543 | $ | 43,274 | |||||||||||||||||||
(a) | The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods. | ||||||||||||||||||||||||
(b) | Represents the increase in cash flows recognized either as principal payments or interest income during the period. |
Loans_and_Allowance_for_Credit1
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Outstanding Balances of Loan | The following table provides outstanding balances related to each of our loan types as of December 31: | ||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 1,052,109 | $ | 1,021,056 | |||||||||||||||||||||||||||
Real estate construction | 120,785 | 93,289 | |||||||||||||||||||||||||||||
Residential real estate | 1,226,344 | 1,262,718 | |||||||||||||||||||||||||||||
Commercial real estate | 1,405,256 | 1,296,472 | |||||||||||||||||||||||||||||
Loans to individuals | 652,814 | 610,298 | |||||||||||||||||||||||||||||
Total loans and leases net of unearned income | $ | 4,457,308 | $ | 4,283,833 | |||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness | The following tables represent our credit risk profile by creditworthiness category for the years ended December 31: | ||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | Real estate construction | Residential real estate | Commercial real estate | Loans to individuals | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Pass | $ | 983,357 | $ | 112,536 | $ | 1,214,920 | $ | 1,353,773 | $ | 652,596 | $ | 4,317,182 | |||||||||||||||||||
Non-Pass | |||||||||||||||||||||||||||||||
OAEM | 32,563 | 8,013 | 2,315 | 29,479 | — | 72,370 | |||||||||||||||||||||||||
Substandard | 32,028 | 236 | 9,109 | 22,004 | 218 | 63,595 | |||||||||||||||||||||||||
Doubtful | 4,161 | — | — | — | — | 4,161 | |||||||||||||||||||||||||
Total Non-Pass | 68,752 | 8,249 | 11,424 | 51,483 | 218 | 140,126 | |||||||||||||||||||||||||
Total | $ | 1,052,109 | $ | 120,785 | $ | 1,226,344 | $ | 1,405,256 | $ | 652,814 | $ | 4,457,308 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | Real estate construction | Residential real estate | Commercial real estate | Loans to individuals | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Pass | $ | 943,107 | $ | 79,679 | $ | 1,245,422 | $ | 1,243,170 | $ | 610,094 | $ | 4,121,472 | |||||||||||||||||||
Non-Pass | |||||||||||||||||||||||||||||||
OAEM | 35,429 | 9,710 | 5,161 | 28,823 | 1 | 79,124 | |||||||||||||||||||||||||
Substandard | 42,520 | 3,900 | 12,135 | 24,479 | 203 | 83,237 | |||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||||||||
Total Non-Pass | 77,949 | 13,610 | 17,296 | 53,302 | 204 | 162,361 | |||||||||||||||||||||||||
Total | $ | 1,021,056 | $ | 93,289 | $ | 1,262,718 | $ | 1,296,472 | $ | 610,298 | $ | 4,283,833 | |||||||||||||||||||
Age Analysis of Past Due Loans by Segment | The following tables delineate the aging analysis of the recorded investments in past due loans as of December 31. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection. | ||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
30 - 59 | 60 - 89 | 90 days | Nonaccrual | Total past | Current | Total | |||||||||||||||||||||||||
days | days | and | due and | ||||||||||||||||||||||||||||
past due | past | greater | nonaccrual | ||||||||||||||||||||||||||||
due | and still | ||||||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 2,816 | $ | 213 | $ | 264 | $ | 27,007 | $ | 30,300 | $ | 1,021,809 | $ | 1,052,109 | |||||||||||||||||
Real estate construction | — | 1 | — | 236 | 237 | 120,548 | 120,785 | ||||||||||||||||||||||||
Residential real estate | 5,162 | 1,295 | 1,077 | 7,900 | 15,434 | 1,210,910 | 1,226,344 | ||||||||||||||||||||||||
Commercial real estate | 1,797 | 122 | — | 7,306 | 9,225 | 1,396,031 | 1,405,256 | ||||||||||||||||||||||||
Loans to individuals | 3,698 | 1,059 | 1,278 | 218 | 6,253 | 646,561 | 652,814 | ||||||||||||||||||||||||
Total | $ | 13,473 | $ | 2,690 | $ | 2,619 | $ | 42,667 | $ | 61,449 | $ | 4,395,859 | $ | 4,457,308 | |||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
30 - 59 | 60 - 89 | 90 days | Nonaccrual | Total past | Current | Total | |||||||||||||||||||||||||
days | days | and | due and | ||||||||||||||||||||||||||||
past due | past | greater | nonaccrual | ||||||||||||||||||||||||||||
due | and still | ||||||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 594 | $ | 319 | $ | 185 | $ | 23,631 | $ | 24,729 | $ | 996,327 | $ | 1,021,056 | |||||||||||||||||
Real estate construction | — | — | — | 2,567 | 2,567 | 90,722 | 93,289 | ||||||||||||||||||||||||
Residential real estate | 4,002 | 524 | 1,041 | 10,520 | 16,087 | 1,246,631 | 1,262,718 | ||||||||||||||||||||||||
Commercial real estate | 1,199 | 23 | 13 | 8,966 | 10,201 | 1,286,271 | 1,296,472 | ||||||||||||||||||||||||
Loans to individuals | 2,895 | 990 | 1,266 | 204 | 5,355 | 604,943 | 610,298 | ||||||||||||||||||||||||
Total | $ | 8,690 | $ | 1,856 | $ | 2,505 | $ | 45,888 | $ | 58,939 | $ | 4,224,894 | $ | 4,283,833 | |||||||||||||||||
Recorded Investment and Unpaid Principal Balance for Impaired Loans with Associated Allowance | The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of December 31, 2014 and 2013. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired for the years ended December 31, 2014, 2013 and 2012. Average balances are calculated based on month-end balances of the loans for the period reported and are included in the table below based on its period end allowance position. | ||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||
investment | principal | allowance | recorded | Income | |||||||||||||||||||||||||||
balance | investment | Recognized | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 9,439 | $ | 10,937 | $ | 11,536 | $ | 133 | |||||||||||||||||||||||
Real estate construction | 236 | 476 | 1,190 | 19 | |||||||||||||||||||||||||||
Residential real estate | 10,773 | 12,470 | 11,592 | 210 | |||||||||||||||||||||||||||
Commercial real estate | 8,768 | 10,178 | 8,830 | 98 | |||||||||||||||||||||||||||
Loans to individuals | 288 | 337 | 308 | 4 | |||||||||||||||||||||||||||
Subtotal | 29,504 | 34,398 | 33,456 | 464 | |||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 24,826 | 25,583 | $ | 9,304 | 15,797 | 143 | |||||||||||||||||||||||||
Real estate construction | — | — | — | — | — | ||||||||||||||||||||||||||
Residential real estate | 367 | 380 | 56 | 357 | 14 | ||||||||||||||||||||||||||
Commercial real estate | 554 | 554 | 101 | 184 | 4 | ||||||||||||||||||||||||||
Loans to individuals | — | — | — | — | — | ||||||||||||||||||||||||||
Subtotal | 25,747 | 26,517 | 9,461 | 16,338 | 161 | ||||||||||||||||||||||||||
Total | $ | 55,251 | $ | 60,915 | $ | 9,461 | $ | 49,794 | $ | 625 | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||
investment | principal | allowance | recorded | Income | |||||||||||||||||||||||||||
balance | investment | Recognized | |||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 6,752 | $ | 7,649 | $ | 14,454 | $ | 73 | |||||||||||||||||||||||
Real estate construction | 3,486 | 6,664 | 5,923 | 47 | |||||||||||||||||||||||||||
Residential real estate | 9,333 | 9,952 | 9,280 | 211 | |||||||||||||||||||||||||||
Commercial real estate | 13,606 | 14,719 | 27,881 | 250 | |||||||||||||||||||||||||||
Loans to individuals | 289 | 307 | 255 | 3 | |||||||||||||||||||||||||||
Subtotal | 33,466 | 39,291 | 57,793 | 584 | |||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 21,482 | 22,082 | $ | 7,364 | 16,479 | 64 | |||||||||||||||||||||||||
Real estate construction | 414 | 737 | 94 | 515 | — | ||||||||||||||||||||||||||
Residential real estate | 3,533 | 3,585 | 1,282 | 3,200 | 31 | ||||||||||||||||||||||||||
Commercial real estate | 488 | 612 | 84 | 188 | — | ||||||||||||||||||||||||||
Loans to individuals | — | — | — | — | — | ||||||||||||||||||||||||||
Subtotal | 25,917 | 27,016 | 8,824 | 20,382 | 95 | ||||||||||||||||||||||||||
Total | $ | 59,383 | $ | 66,307 | $ | 8,824 | $ | 78,175 | $ | 679 | |||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
Average | Interest | ||||||||||||||||||||||||||||||
recorded | Income | ||||||||||||||||||||||||||||||
investment | Recognized | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 9,217 | $ | 173 | |||||||||||||||||||||||||||
Real estate construction | 11,912 | — | |||||||||||||||||||||||||||||
Residential real estate | 8,114 | 72 | |||||||||||||||||||||||||||||
Commercial real estate | 28,574 | 66 | |||||||||||||||||||||||||||||
Loans to individuals | 103 | 2 | |||||||||||||||||||||||||||||
Subtotal | 57,920 | 313 | |||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 21,979 | 9 | |||||||||||||||||||||||||||||
Real estate construction | 1,457 | — | |||||||||||||||||||||||||||||
Residential real estate | 1,599 | 15 | |||||||||||||||||||||||||||||
Commercial real estate | 5,024 | 32 | |||||||||||||||||||||||||||||
Loans to individuals | — | — | |||||||||||||||||||||||||||||
Subtotal | 30,059 | 56 | |||||||||||||||||||||||||||||
Total | $ | 87,979 | $ | 369 | |||||||||||||||||||||||||||
Troubled Debt Restructured Loans and Commitments | The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans as of December 31: | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Troubled debt restructured loans | |||||||||||||||||||||||||||||||
Accrual status | $ | 12,584 | $ | 13,495 | $ | 13,037 | |||||||||||||||||||||||||
Nonaccrual status | 16,952 | 16,980 | 50,979 | ||||||||||||||||||||||||||||
Total | $ | 29,536 | $ | 30,475 | $ | 64,016 | |||||||||||||||||||||||||
Commitments | |||||||||||||||||||||||||||||||
Letters of credit | $ | — | $ | — | $ | 1,574 | |||||||||||||||||||||||||
Unused lines of credit | 4,120 | 452 | — | ||||||||||||||||||||||||||||
Total | $ | 4,120 | $ | 452 | $ | 1,574 | |||||||||||||||||||||||||
Troubled Debt Restructurings is 90 Days or More Past Due | he following tables provide detail, including specific reserve and reasons for modification, related to loans identified as troubled debt restructurings during the years ending December 31: | ||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
Type of Modification | |||||||||||||||||||||||||||||||
Number | Extend | Modify | Modify | Total | Post- | Specific | |||||||||||||||||||||||||
of | Maturity | Rate | Payments | Pre-Modification | Modification | Reserve | |||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 9 | $ | 5,487 | $ | — | $ | 14,529 | $ | 20,016 | $ | 13,785 | $ | 4,665 | ||||||||||||||||||
Residential real estate | 52 | — | 629 | 1,797 | 2,426 | 2,062 | — | ||||||||||||||||||||||||
Commercial real estate | 1 | — | — | 8 | 8 | 6 | — | ||||||||||||||||||||||||
Loans to individuals | 15 | — | 103 | 47 | 150 | 114 | — | ||||||||||||||||||||||||
Total | 77 | $ | 5,487 | $ | 732 | $ | 16,381 | $ | 22,600 | $ | 15,967 | $ | 4,665 | ||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
Type of Modification | |||||||||||||||||||||||||||||||
Number | Extend | Modify | Modify | Other | Total | Post- | Specific | ||||||||||||||||||||||||
of | Maturity | Rate | Payments | Pre-Modification | Modification | Reserve | |||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 14 | $ | 3,462 | $ | — | $ | 1,677 | $ | — | $ | 5,139 | $ | 3,104 | $ | 906 | ||||||||||||||||
Residential real estate | 46 | 347 | 418 | 2,116 | — | 2,881 | 2,316 | 161 | |||||||||||||||||||||||
Commercial real estate | 5 | 571 | 1,499 | 145 | — | 2,215 | 2,184 | 34 | |||||||||||||||||||||||
Loans to individuals | 17 | 10 | 101 | 33 | — | 144 | 109 | — | |||||||||||||||||||||||
Total | 82 | $ | 4,390 | $ | 2,018 | $ | 3,971 | $ | — | $ | 10,379 | $ | 7,713 | $ | 1,101 | ||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
Type of Modification | |||||||||||||||||||||||||||||||
Number | Extend | Modify | Modify | Other | Total | Post- | Specific | ||||||||||||||||||||||||
of | Maturity | Rate | Payments | Pre-Modification | Modification | Reserve | |||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial, financial, agricultural and other | 12 | $ | 1,599 | $ | 187 | $ | 9,476 | $ | — | $ | 11,262 | $ | 11,335 | $ | 4,237 | ||||||||||||||||
Real estate construction | 2 | 1,697 | — | — | — | 1,697 | 2,133 | 200 | |||||||||||||||||||||||
Residential real estate | 25 | 200 | 132 | 697 | 48 | 1,077 | 973 | 69 | |||||||||||||||||||||||
Commercial real estate | 4 | 3,280 | 4,308 | 71 | — | 7,659 | 7,607 | 409 | |||||||||||||||||||||||
Loans to individuals | 17 | — | 97 | 88 | 6 | 191 | 173 | — | |||||||||||||||||||||||
Total | 60 | $ | 6,776 | $ | 4,724 | $ | 10,332 | $ | 54 | $ | 21,886 | $ | 22,221 | $ | 4,915 | ||||||||||||||||
Allowance for Credit Losses | The following tables provide detail related to the allowance for credit losses for the years ended December 31. During 2013, the negative $5.9 million provision for credit losses related to the unallocated portion of the allowance is a result of it no longer being treated as a separate component of the allowance but instead is now incorporated into the reserve provided for each loan category. This portion of the allowance for credit losses reflects the qualitative or environmental factors that are likely to cause estimated credit losses to differ from historical loss experience. | ||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||
Commercial, | Real estate | Residential | Commercial | Loans to | Total | ||||||||||||||||||||||||||
financial, | construction | real estate | real estate | individuals | |||||||||||||||||||||||||||
agricultural | |||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||
Beginning Balance | $ | 22,663 | $ | 6,600 | $ | 7,727 | $ | 11,778 | $ | 5,457 | $ | 54,225 | |||||||||||||||||||
Charge-offs | (8,911 | ) | (296 | ) | (3,153 | ) | (1,148 | ) | (3,964 | ) | (17,472 | ) | |||||||||||||||||||
Recoveries | 734 | 1,340 | 650 | 612 | 766 | 4,102 | |||||||||||||||||||||||||
Provision (credit) | 15,141 | (5,581 | ) | (1,560 | ) | 639 | 2,557 | 11,196 | |||||||||||||||||||||||
Ending Balance | $ | 29,627 | $ | 2,063 | $ | 3,664 | $ | 11,881 | $ | 4,816 | $ | 52,051 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 9,304 | $ | — | $ | 56 | $ | 101 | $ | — | $ | 9,461 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 20,323 | 2,063 | 3,608 | 11,780 | 4,816 | 42,590 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||
Ending balance | 1,052,109 | 120,785 | 1,226,344 | 1,405,256 | 652,814 | 4,457,308 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | 33,332 | 193 | 7,127 | 7,790 | — | 48,442 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 1,018,777 | 120,592 | 1,219,217 | 1,397,466 | 652,814 | 4,408,866 | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
Commercial, | Real estate | Residential | Commercial | Loans to | Unallocated | Total | |||||||||||||||||||||||||
financial, | construction | real estate | real estate | individuals | |||||||||||||||||||||||||||
agricultural | |||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||
Beginning Balance | $ | 19,852 | $ | 8,928 | $ | 5,908 | $ | 22,441 | $ | 4,132 | $ | 5,926 | $ | 67,187 | |||||||||||||||||
Charge-offs | (18,399 | ) | (773 | ) | (1,814 | ) | (10,513 | ) | (3,679 | ) | — | (35,178 | ) | ||||||||||||||||||
Recoveries | 455 | 501 | 1,264 | 136 | 633 | — | 2,989 | ||||||||||||||||||||||||
Provision | 20,755 | (2,056 | ) | 2,369 | (286 | ) | 4,371 | (5,926 | ) | 19,227 | |||||||||||||||||||||
Ending Balance | $ | 22,663 | $ | 6,600 | $ | 7,727 | $ | 11,778 | $ | 5,457 | $ | — | $ | 54,225 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 7,364 | $ | 94 | $ | 1,282 | $ | 84 | $ | — | $ | — | $ | 8,824 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | 15,299 | 6,506 | 6,445 | 11,694 | 5,457 | — | 45,401 | ||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||
Ending balance | 1,021,056 | 93,289 | 1,262,718 | 1,296,472 | 610,298 | 4,283,833 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | 27,251 | 3,844 | 9,349 | 12,151 | — | 52,595 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 993,805 | 89,445 | 1,253,369 | 1,284,321 | 610,298 | 4,231,238 | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
Commercial, | Real estate | Residential | Commercial | Loans to | Unallocated | Total | |||||||||||||||||||||||||
financial, | construction | real estate | real estate | individuals | |||||||||||||||||||||||||||
agricultural | |||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||
Beginning Balance | $ | 18,200 | $ | 6,756 | $ | 8,237 | $ | 18,961 | $ | 4,244 | $ | 4,836 | $ | 61,234 | |||||||||||||||||
Charge-offs | (5,207 | ) | (3,601 | ) | (3,828 | ) | (851 | ) | (3,482 | ) | — | (16,969 | ) | ||||||||||||||||||
Recoveries | 443 | 582 | 422 | 410 | 521 | — | 2,378 | ||||||||||||||||||||||||
Provision (credit) | 6,416 | 5,191 | 1,077 | 3,921 | 2,849 | 1,090 | 20,544 | ||||||||||||||||||||||||
Ending Balance | $ | 19,852 | $ | 8,928 | $ | 5,908 | $ | 22,441 | $ | 4,132 | $ | 5,926 | $ | 67,187 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,331 | $ | 300 | $ | 780 | $ | 6,367 | $ | — | $ | — | $ | 17,778 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | 9,521 | 8,628 | 5,128 | 16,074 | 4,132 | 5,926 | 49,409 | ||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||
Ending balance | 1,019,822 | 87,438 | 1,241,565 | 1,273,661 | 582,218 | 4,204,704 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | 33,443 | 11,177 | 6,444 | 49,123 | — | 100,187 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 986,379 | 76,261 | 1,235,121 | 1,224,538 | 582,218 | 4,104,517 | |||||||||||||||||||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Variable Interest Entities [Abstract] | ||||||||
Schedule of Maximum Potential Exposure | First Commonwealth’s maximum potential exposure is equal to its carrying value and is summarized in the table below as of December 31: | |||||||
2014 | 2013 | |||||||
(dollars in thousands) | ||||||||
Low Income Housing Limited Partnership Investments | $ | 61 | $ | 207 | ||||
Commitments_and_Letters_of_Cre1
Commitments and Letters of Credit (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Notional Amount of Commitments and Letter of Credit Instruments | The following table identifies the notional amount of those instruments at December 31: | |||||||
2014 | 2013 | |||||||
(dollars in thousands) | ||||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 1,635,948 | $ | 1,571,987 | ||||
Financial standby letters of credit | 36,075 | 38,121 | ||||||
Performance standby letters of credit | 25,915 | 32,441 | ||||||
Commercial letters of credit | 2,611 | — | ||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Schedule of Premises and Equipment | Premises and equipment are described as follows: | |||||||||
Estimated Useful Life | 2014 | 2013 | ||||||||
(dollars in thousands) | ||||||||||
Land | Indefinite | $ | 12,098 | $ | 12,431 | |||||
Buildings and improvements | 10-50 years | 75,873 | 81,829 | |||||||
Leasehold improvements | 5-40 years | 14,229 | 14,354 | |||||||
Furniture and equipment | 3-10 years | 59,034 | 80,131 | |||||||
Software | 3-7 years | 37,007 | 46,133 | |||||||
Subtotal | 198,241 | 234,878 | ||||||||
Less accumulated depreciation and amortization | 133,252 | 166,938 | ||||||||
Total premises and equipment | $ | 64,989 | $ | 67,940 | ||||||
Schedule of Future Minimum Rentals | First Commonwealth leases various premises and assorted equipment under non-cancellable agreements. Total future minimal rental commitments at December 31, 2014, were as follows: | |||||||||
Premises | Equipment | |||||||||
(dollars in thousands) | ||||||||||
2015 | $ | 3,257 | $ | 56 | ||||||
2016 | 2,969 | — | ||||||||
2017 | 2,758 | — | ||||||||
2018 | 2,582 | — | ||||||||
2019 | 2,330 | — | ||||||||
Thereafter | 12,276 | — | ||||||||
Total | $ | 26,172 | $ | 56 | ||||||
Goodwill_and_Other_Amortizing_1
Goodwill and Other Amortizing Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill Disclosure [Abstract] | ||||||||||||
Summarized Other Intangible Assets | The following table summarizes other intangible assets, which for each year includes only core deposit intangibles: | |||||||||||
Gross | Accumulated | Net | ||||||||||
Intangible | Amortization | Intangible | ||||||||||
Assets | Assets | |||||||||||
(dollars in thousands) | ||||||||||||
December 31, 2014 | ||||||||||||
Customer deposit intangibles | $ | 22,470 | $ | (21,773 | ) | $ | 697 | |||||
Customer list intangible | $ | 984 | $ | (16 | ) | $ | 968 | |||||
Total other intangible assets | $ | 23,454 | $ | (21,789 | ) | $ | 1,665 | |||||
December 31, 2013 | ||||||||||||
Customer deposit intangibles | $ | 22,470 | $ | (21,159 | ) | $ | 1,311 | |||||
Customer list intangible | $ | — | $ | — | $ | — | ||||||
Total other intangible assets | $ | 22,470 | $ | (21,159 | ) | $ | 1,311 | |||||
Estimated Amortization Expense of Core Deposit Intangibles | The following presents the estimated amortization expense of core deposit intangibles and the customer intangible list: | |||||||||||
Core Deposit Intangibles | Customer Intangible List | Total | ||||||||||
(dollars in thousands) | ||||||||||||
2015 | $ | 338 | $ | 260 | $ | 598 | ||||||
2016 | 177 | 168 | 345 | |||||||||
2017 | 63 | 130 | 193 | |||||||||
2018 | 62 | 99 | 161 | |||||||||
2019 | 57 | 77 | 134 | |||||||||
Thereafter | — | 234 | 234 | |||||||||
Total | $ | 697 | $ | 968 | $ | 1,665 | ||||||
InterestBearing_Deposits_Table
Interest-Bearing Deposits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits [Abstract] | ||||||||
Components of Interest-Bearing Deposits | Components of interest-bearing deposits at December 31 were as follows: | |||||||
2014 | 2013 | |||||||
(dollars in thousands) | ||||||||
Interest-bearing demand deposits | $ | 81,851 | $ | 89,149 | ||||
Savings deposits | 2,402,288 | 2,506,631 | ||||||
Time deposits | 842,345 | 1,095,722 | ||||||
Total interest-bearing deposits | $ | 3,326,484 | $ | 3,691,502 | ||||
Scheduled Maturities of Time Deposits | Included in time deposits at December 31, 2014, were certificates of deposit with the following scheduled maturities (dollars in thousands): | |||||||
2015 | $ | 586,928 | ||||||
2016 | 130,777 | |||||||
2017 | 42,772 | |||||||
2018 | 25,446 | |||||||
2019 and thereafter | 56,422 | |||||||
Total | $ | 842,345 | ||||||
Shortterm_Borrowings_Tables
Short-term Borrowings (Tables) (USD $) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||
Short-term Debt [Abstract] | |||||||||||||||||||||||||||||||||||
Summary of Short-Term Borrowings | Short-term borrowings at December 31 were as follows: | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Ending | Average | Average | Ending | Average | Average | Ending | Average | Average | |||||||||||||||||||||||||||
Balance | Balance | Rate | Balance | Balance | Rate | Balance | Balance | Rate | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Federal funds purchased | $ | 9,000 | $ | 11,691 | 0.36 | % | $ | 16,000 | $ | 11,982 | 0.36 | % | $ | 34,000 | $ | 47,727 | 0.27 | % | |||||||||||||||||
Borrowings from FHLB | 945,000 | 644,651 | 0.31 | 478,100 | 335,449 | 0.27 | 178,100 | 214,703 | 0.25 | ||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 151,876 | 159,051 | 0.24 | 132,515 | 130,957 | 0.25 | 144,127 | 139,766 | 0.28 | ||||||||||||||||||||||||||
Total | $ | 1,105,876 | $ | 815,393 | 0.3 | $ | 626,615 | $ | 478,388 | 0.26 | $ | 356,227 | $ | 402,196 | 0.27 | ||||||||||||||||||||
Maximum total at any month-end | $ | 1,105,876 | $ | 626,615 | $ | 486,144 | |||||||||||||||||||||||||||||
Weighted average rate at year-end | 0.3 | % | 0.27 | % | 0.25 | % | |||||||||||||||||||||||||||||
Short-term borrowings | $1,105,876 | $626,615 | $356,227 | ||||||||||||||||||||||||||||||||
Interest Expense on Short-Term Borrowings | Interest expense on short-term borrowings for the years ended December 31 is detailed below: | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Federal funds purchased | $ | 42 | $ | 43 | $ | 128 | |||||||||||||||||||||||||||||
Borrowings from FHLB | 2,019 | 893 | 545 | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 388 | 326 | 397 | ||||||||||||||||||||||||||||||||
Total interest on short-term borrowings | $ | 2,449 | $ | 1,262 | $ | 1,070 | |||||||||||||||||||||||||||||
Subordinated_Debentures_Tables
Subordinated Debentures (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure Subordinated Debentures [Abstract] | ||||||||||||||
Subordinated Debentures Outstanding | Subordinated Debentures outstanding at December 31 are as follows: | |||||||||||||
2014 | 2013 | |||||||||||||
Due | Amount | Rate | Amount | Rate | ||||||||||
(dollars in thousands) | ||||||||||||||
Owed to: | ||||||||||||||
First Commonwealth Capital Trust II | 2034 | $ | 30,929 | LIBOR + 2.85 | $ | 30,929 | LIBOR + 2.85 | |||||||
First Commonwealth Capital Trust III | 2034 | 41,238 | LIBOR + 2.85 | 41,238 | LIBOR + 2.85 | |||||||||
Total | $ | 72,167 | $ | 72,167 | ||||||||||
Other_Longterm_Debt_Tables
Other Long-term Debt (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||
Summary of Other Long-Term Debt | Other long-term debt at December 31 follows: | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Amount | Weighted | Weighted | Amount | Weighted | Weighted | |||||||||||||||
Average | Average | Average | Average | |||||||||||||||||
Contractual | Effective | Contractual | Effective | |||||||||||||||||
Rate | Rate | Rate | Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Borrowings from FHLB due: | ||||||||||||||||||||
2014 | $ | 57,892 | 1.13 | % | 1.13 | % | ||||||||||||||
2015 | $ | 80,142 | 0.82 | % | 0.82 | % | 79,971 | 0.82 | 0.82 | |||||||||||
2016 | 563 | 3.82 | 3.82 | 389 | 4.64 | 4.64 | ||||||||||||||
2017 | 585 | 3.83 | 3.83 | 407 | 4.64 | 4.64 | ||||||||||||||
2018 | 607 | 3.83 | 3.83 | 426 | 4.64 | 4.64 | ||||||||||||||
2019 | 631 | 3.84 | 3.84 | |||||||||||||||||
Thereafter | 6,931 | 3.81 | 3.81 | 5,300 | 4.66 | 4.66 | ||||||||||||||
Total | $ | 89,459 | $ | 144,385 | ||||||||||||||||
Fair_Values_of_Assets_and_Liab1
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Quantitative Inputs and Assumptions Used in Level 3 Fair Value Measurements | In accordance with ASU 2011-4, the following table provides information related to quantitative inputs and assumptions used in Level 3 fair value measurements. | ||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Inputs | Range / (weighted | ||||||||||||||||||
(dollars in | average) | ||||||||||||||||||||
thousands) | |||||||||||||||||||||
Pooled Trust Preferred Securities | $ | 28,999 | Discounted Cash Flow | Probability of default | 0% - 100% (17.16%) | ||||||||||||||||
Prepayment rates | 0% - 73.88% (6.13%) | ||||||||||||||||||||
Discount rates | 5.25% - 14.00% (a) | ||||||||||||||||||||
Equities | 1,420 | Par Value | N/A | N/A | |||||||||||||||||
Impaired Loans | 4,116 | (b) | Gas Reserve study | Discount rate | 10.00% | ||||||||||||||||
Gas per MCF | $3.00 - $4.85 (c) | ||||||||||||||||||||
Oil per BBL/d | $53.91 - $71.01 (c) | ||||||||||||||||||||
NGL per gallon | $0.83 (c) | ||||||||||||||||||||
Other Real Estate Owned | 153 | Internal Valuation | N/A | N/A | |||||||||||||||||
(a) | incorporates spread over the risk free rate related primarily to credit quality and illiquidity of securities. | ||||||||||||||||||||
(b) | the remainder of impaired loans valued using Level 3 inputs are not included in this disclosure as the values of those loans are based on bankruptcy agreement documentation. | ||||||||||||||||||||
(c) | unobservable inputs are defined as follows: MCF—million cubic feet; BBL/d—barrels per day; NGL—natural gas liquid. | ||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The tables below present the balances of assets and liabilities measured at fair value on a recurring basis at December 31: | ||||||||||||||||||||
2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Obligations of U.S. Government Agencies: | |||||||||||||||||||||
Mortgage-Backed Securities—Residential | $ | — | $ | 25,936 | $ | — | $ | 25,936 | |||||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | |||||||||||||||||||||
Mortgage-Backed Securities—Residential | — | 950,881 | — | 950,881 | |||||||||||||||||
Mortgage-Backed Securities—Commercial | — | 74 | — | 74 | |||||||||||||||||
Other Government-Sponsored Enterprises | — | 267,877 | — | 267,877 | |||||||||||||||||
Obligations of States and Political Subdivisions | — | 27,377 | — | 27,377 | |||||||||||||||||
Corporate Securities | — | 7,255 | — | 7,255 | |||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | — | — | 28,999 | 28,999 | |||||||||||||||||
Total Debt Securities | — | 1,279,400 | 28,999 | 1,308,399 | |||||||||||||||||
Equities | — | — | 1,420 | 1,420 | |||||||||||||||||
Total Securities Available for Sale | — | 1,279,400 | 30,419 | 1,309,819 | |||||||||||||||||
Other Investments | — | 44,545 | — | 44,545 | |||||||||||||||||
Loans Held for Sale | — | 2,502 | — | 2,502 | |||||||||||||||||
Other Assets (a) | — | 11,186 | — | 11,186 | |||||||||||||||||
Total Assets | $ | — | $ | 1,337,633 | $ | 30,419 | $ | 1,368,052 | |||||||||||||
Other Liabilities (a) | $ | — | $ | 10,671 | $ | — | $ | 10,671 | |||||||||||||
Total Liabilities | $ | — | $ | 10,671 | $ | — | $ | 10,671 | |||||||||||||
(a) | Hedging and non-hedging interest rate derivatives | ||||||||||||||||||||
2013 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Obligations of U.S. Government Agencies: | |||||||||||||||||||||
Mortgage-Backed Securities—Residential | $ | — | $ | 25,204 | $ | — | $ | 25,204 | |||||||||||||
Obligations of U.S. Government-Sponsored Enterprises: | |||||||||||||||||||||
Mortgage-Backed Securities—Residential | — | 994,887 | — | 994,887 | |||||||||||||||||
Mortgage-Backed Securities—Commercial | — | 105 | — | 105 | |||||||||||||||||
Other Government-Sponsored Enterprises | — | 266,125 | — | 266,125 | |||||||||||||||||
Obligations of States and Political Subdivisions | — | 80 | — | 80 | |||||||||||||||||
Corporate Securities | — | 7,021 | — | 7,021 | |||||||||||||||||
Pooled Trust Preferred Collateralized Debt Obligations | — | — | 23,523 | 23,523 | |||||||||||||||||
Total Debt Securities | — | 1,293,422 | 23,523 | 1,316,945 | |||||||||||||||||
Equities | — | — | 1,420 | 1,420 | |||||||||||||||||
Total Securities Available for Sale | — | 1,293,422 | 24,943 | 1,318,365 | |||||||||||||||||
Other Investments | — | 35,444 | — | 35,444 | |||||||||||||||||
Loans Held for Sale | — | — | — | — | |||||||||||||||||
Other Assets (a) | — | 14,358 | — | 14,358 | |||||||||||||||||
Total Assets | $ | — | $ | 1,343,224 | $ | 24,943 | $ | 1,368,167 | |||||||||||||
Other Liabilities (a) | $ | — | $ | 14,318 | $ | — | $ | 14,318 | |||||||||||||
Total Liabilities | $ | — | $ | 14,318 | $ | — | $ | 14,318 | |||||||||||||
(a) | Non-hedging interest rate derivatives | ||||||||||||||||||||
Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows for the year ended December 31, 2014: | ||||||||||||||||||||
Pooled Trust | Equities | Loans | Other | Total | |||||||||||||||||
Preferred | Held for | Assets | |||||||||||||||||||
Collateralized | Sale | ||||||||||||||||||||
Debt | |||||||||||||||||||||
Obligations | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Balance, beginning of year | $ | 23,523 | $ | 1,420 | $ | — | $ | — | $ | 24,943 | |||||||||||
Total gains or losses | |||||||||||||||||||||
Included in earnings | — | — | 77 | — | 77 | ||||||||||||||||
Included in other comprehensive income | 7,162 | — | — | — | 7,162 | ||||||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||||||
Purchases | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||
Sales | — | — | (3,112 | ) | — | (3,112 | ) | ||||||||||||||
Settlements | (1,686 | ) | — | — | — | (1,686 | ) | ||||||||||||||
Transfers from Level 3 | — | — | — | — | — | ||||||||||||||||
Transfers into Level 3 | — | — | 3,035 | — | 3,035 | ||||||||||||||||
Balance, end of year | $ | 28,999 | $ | 1,420 | $ | — | $ | — | $ | 30,419 | |||||||||||
There are no gains or losses included in earnings for the period that are attributable to the change in realized gains (losses) relating to assets held at December 31, 2014. | |||||||||||||||||||||
During the year ended December 31, 2014, there were no transfers between fair value Levels 1 and 2. However, $3.0 million of loans were transferred into Level 3 from Level 2 due to the loans being transferred to a held for sale status. The loans transferred and subsequently sold related to two nonperforming relationships for which this was determined to be an appropriate exit strategy. Completion of the loan sales resulted in a $0.1 million gain for the period. | |||||||||||||||||||||
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows for the year ended December 31, 2013: | |||||||||||||||||||||
Pooled Trust | Equities | Loans | Other | Total | |||||||||||||||||
Preferred | Held for | Assets | |||||||||||||||||||
Collateralized | Sale | ||||||||||||||||||||
Debt | |||||||||||||||||||||
Obligations | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Balance, beginning of year | $ | 23,373 | $ | 1,420 | $ | — | $ | — | $ | 24,793 | |||||||||||
Total gains or losses | |||||||||||||||||||||
Included in earnings | (1,395 | ) | — | 625 | — | (770 | ) | ||||||||||||||
Included in other comprehensive income | 12,338 | — | — | — | 12,338 | ||||||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||||||
Purchases | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||
Sales | — | — | (20,760 | ) | — | (20,760 | ) | ||||||||||||||
Settlements | (10,793 | ) | — | — | — | (10,793 | ) | ||||||||||||||
Transfers from Level 3 | — | — | — | — | — | ||||||||||||||||
Transfers into Level 3 | — | — | 20,135 | — | 20,135 | ||||||||||||||||
Balance, end of year | $ | 23,523 | $ | 1,420 | $ | — | $ | — | $ | 24,943 | |||||||||||
Schedule of Assets Measured on Nonrecurring Basis | The tables below present the balances of assets measured at fair value on a nonrecurring basis at December 31 and total gains and losses realized on these assets during the year ended December 31: | ||||||||||||||||||||
2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||
Gains | |||||||||||||||||||||
(Losses) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Impaired loans | $ | — | $ | 34,864 | $ | 10,926 | $ | 45,790 | $ | (7,017 | ) | ||||||||||
Other real estate owned | — | 7,828 | 153 | 7,981 | (1,319 | ) | |||||||||||||||
Total Assets | $ | — | $ | 42,692 | $ | 11,079 | $ | 53,771 | $ | (8,336 | ) | ||||||||||
2013 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||
Gains | |||||||||||||||||||||
(Losses) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Impaired loans | $ | — | $ | 36,903 | $ | 13,656 | $ | 50,559 | $ | (13,681 | ) | ||||||||||
Other real estate owned | — | 12,752 | 172 | 12,924 | (198 | ) | |||||||||||||||
Total Assets | $ | — | $ | 49,655 | $ | 13,828 | $ | 63,483 | $ | (13,879 | ) | ||||||||||
Carrying Amounts and Fair Values of Financial Instruments | The following table presents carrying amounts and estimated fair values of First Commonwealth’s financial instruments at December 31: | ||||||||||||||||||||
2014 | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Carrying | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and due from banks | $ | 72,276 | $ | 72,276 | $ | 72,276 | $ | — | $ | — | |||||||||||
Interest-bearing deposits | 2,262 | 2,262 | 2,262 | — | — | ||||||||||||||||
Securities available for sale | 1,309,819 | 1,309,819 | — | 1,279,400 | 30,419 | ||||||||||||||||
Other investments | 44,545 | 44,545 | — | 44,545 | — | ||||||||||||||||
Loans held for sale | 2,502 | 2,502 | — | 2,502 | — | ||||||||||||||||
Loans | 4,457,308 | 4,439,766 | — | 34,864 | 4,404,902 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | 4,315,511 | 4,319,997 | — | 4,319,997 | — | ||||||||||||||||
Short-term borrowings | 1,105,876 | 1,105,867 | — | 1,105,867 | — | ||||||||||||||||
Long-term debt | 89,459 | 90,319 | — | 90,319 | — | ||||||||||||||||
Subordinated debt | 72,167 | 62,815 | — | — | 62,815 | ||||||||||||||||
2013 | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Carrying | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and due from banks | $ | 74,427 | $ | 74,427 | $ | 74,427 | $ | — | $ | — | |||||||||||
Interest-bearing deposits | 3,012 | 3,012 | 3,012 | — | — | ||||||||||||||||
Securities available for sale | 1,318,365 | 1,318,365 | — | 1,293,422 | 24,943 | ||||||||||||||||
Other investments | 35,444 | 35,444 | — | 35,444 | — | ||||||||||||||||
Loans | 4,283,833 | 4,321,847 | — | 36,903 | 4,284,944 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | 4,603,863 | 4,531,685 | — | 4,531,685 | — | ||||||||||||||||
Short-term borrowings | 626,615 | 626,603 | — | 626,603 | — | ||||||||||||||||
Long-term debt | 144,385 | 145,477 | — | 145,477 | — | ||||||||||||||||
Subordinated debt | 72,167 | 51,706 | — | — | 51,706 | ||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Components of Income Tax Provision (Benefit) | The income tax provision for the years ended December 31 is as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Current tax provision for income exclusive of securities transactions: | |||||||||||||||||||||
Federal | $ | 12,661 | $ | 2,509 | $ | 12,035 | |||||||||||||||
State | 157 | 68 | 72 | ||||||||||||||||||
Total current tax provision | 12,818 | 2,577 | 12,107 | ||||||||||||||||||
Deferred tax provision | 4,862 | 12,704 | 2,551 | ||||||||||||||||||
Total tax provision | $ | 17,680 | $ | 15,281 | $ | 14,658 | |||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The statutory to effective tax rate reconciliation for the years ended December 31 is as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Amount | % of | Amount | % of | Amount | % of | ||||||||||||||||
Pretax | Pretax | Pretax | |||||||||||||||||||
Income | Income | Income | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Tax at statutory rate | $ | 21,747 | 35 | % | $ | 19,867 | 35 | % | $ | 19,814 | 35 | % | |||||||||
Increase (decrease) resulting from: | |||||||||||||||||||||
Income from bank owned life insurance | (1,926 | ) | (3 | ) | (1,939 | ) | (3 | ) | (2,048 | ) | (4 | ) | |||||||||
Tax-exempt interest income, net | (2,133 | ) | (4 | ) | (2,600 | ) | (5 | ) | (2,789 | ) | (5 | ) | |||||||||
Tax credits | (134 | ) | — | (144 | ) | — | (267 | ) | — | ||||||||||||
Other | 126 | — | 97 | — | (52 | ) | — | ||||||||||||||
Total tax provision | $ | 17,680 | 28 | % | $ | 15,281 | 27 | % | $ | 14,658 | 26 | % | |||||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Allowance for credit losses | $ | 18,218 | $ | 18,979 | |||||||||||||||||
Postretirement benefits other than pensions | 679 | 726 | |||||||||||||||||||
Alternative minimum tax credit carryforward | 8,627 | 13,896 | |||||||||||||||||||
Litigation reserve | 3,000 | — | |||||||||||||||||||
Unrealized loss on securities available for sale | 2,463 | 11,235 | |||||||||||||||||||
Writedown of other real estate owned | 603 | 207 | |||||||||||||||||||
Deferred compensation | 2,246 | 2,118 | |||||||||||||||||||
Accrued interest on nonaccrual loans | 1,059 | 1,481 | |||||||||||||||||||
Other-than-temporary impairment of securities | 9,239 | 9,693 | |||||||||||||||||||
Depreciation of assets | 1,127 | 1,546 | |||||||||||||||||||
Accrued incentives | 1,594 | 1,153 | |||||||||||||||||||
Unfunded loan commitment allowance | 1,078 | 1,106 | |||||||||||||||||||
Deferred rent | 969 | 653 | |||||||||||||||||||
Other | 1,354 | 2,462 | |||||||||||||||||||
Total deferred tax assets | 52,256 | 65,255 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Basis difference in assets acquired | (344 | ) | (518 | ) | |||||||||||||||||
Loan origination fees and costs | (1,337 | ) | (637 | ) | |||||||||||||||||
Income from unconsolidated subsidiary | (603 | ) | (590 | ) | |||||||||||||||||
Other | (318 | ) | (332 | ) | |||||||||||||||||
Total deferred tax liabilities | (2,602 | ) | (2,077 | ) | |||||||||||||||||
Net deferred tax asset | $ | 49,654 | $ | 63,178 | |||||||||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Cost | Net periodic benefit cost of these plans for the years ended December 31, was as follows: | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
Interest cost on projected benefit obligation | 62 | 62 | 75 | |||||||||||||||||||||||||||||||||
Amortization of transition obligation | — | — | 2 | |||||||||||||||||||||||||||||||||
Gain amortization | (29 | ) | (7 | ) | (32 | ) | ||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 33 | $ | 55 | $ | 45 | ||||||||||||||||||||||||||||||
Schedule of Changes in Benefit Obligations and Plan Assets | The following table sets forth the change in the benefit obligation and plan assets as of December 31: | |||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,644 | $ | 1,986 | ||||||||||||||||||||||||||||||||
Service cost | — | — | ||||||||||||||||||||||||||||||||||
Interest cost | 62 | 62 | ||||||||||||||||||||||||||||||||||
Amendments | — | — | ||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 284 | (225 | ) | |||||||||||||||||||||||||||||||||
Net benefits paid | (168 | ) | (179 | ) | ||||||||||||||||||||||||||||||||
Benefit obligation at end of year | 1,822 | 1,644 | ||||||||||||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | — | — | ||||||||||||||||||||||||||||||||||
Actual return on plan assets | — | — | ||||||||||||||||||||||||||||||||||
Employer contributions | 168 | 179 | ||||||||||||||||||||||||||||||||||
Net benefits paid | (168 | ) | (179 | ) | ||||||||||||||||||||||||||||||||
Fair value of plan assets at end of year | — | — | ||||||||||||||||||||||||||||||||||
Funded Status at End of Year | 1,822 | 1,644 | ||||||||||||||||||||||||||||||||||
Unrecognized transition obligation | — | — | ||||||||||||||||||||||||||||||||||
Unrecognized net gain | 117 | 430 | ||||||||||||||||||||||||||||||||||
Amounts recognized in retained earnings | $ | 1,939 | $ | 2,074 | ||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized as Other Liabilities | As of December 31, the funded status of the plan is: | |||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Amounts Recognized in the Statement of Financial Condition as Other liabilities | $ | 1,822 | $ | 1,644 | ||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | The following table identifies the related tax effects allocated to each component of other comprehensive income in the Consolidated Statements of Comprehensive Income as of December 31. Reclassification adjustments related to securities available for sale are included in the "Net securities gains" line in the Consolidated Statements of Income and reclassification adjustments related to losses on derivatives are included in the "Other operating expenses" line in the Condensed Consolidated Statements of Income. | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Pretax Amount | Tax (Expense) Benefit | Net of Tax Amount | Pretax Amount | Tax (Expense) Benefit | Net of Tax Amount | Pretax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on securities: | ||||||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 25,153 | $ | (8,803 | ) | $ | 16,350 | $ | (34,975 | ) | $ | 12,233 | $ | (22,742 | ) | $ | (661 | ) | $ | 238 | $ | (423 | ) | |||||||||||||
Reclassification adjustment for (gains) losses on securities included in net income | (550 | ) | 193 | (357 | ) | 1,158 | (405 | ) | 753 | (192 | ) | 67 | (125 | ) | ||||||||||||||||||||||
Total unrealized gains (losses) on securities | 24,603 | (8,610 | ) | 15,993 | (33,817 | ) | 11,828 | (21,989 | ) | (853 | ) | 305 | (548 | ) | ||||||||||||||||||||||
Unrealized gains (losses) on derivatives: | ||||||||||||||||||||||||||||||||||||
Unrealized holding gains on derivatives arising during the period | 472 | (165 | ) | 307 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Reclassification adjustment for gains on derivatives included in net income | (10 | ) | 3 | (7 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Total unrealized gains on derivatives | 462 | (162 | ) | 300 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Unrealized (losses) gains for postretirement obligations: | ||||||||||||||||||||||||||||||||||||
Transition obligation | — | — | — | — | — | — | 2 | (1 | ) | 1 | ||||||||||||||||||||||||||
Net (loss) gain | (313 | ) | 109 | (204 | ) | 219 | (77 | ) | 142 | (300 | ) | 105 | (195 | ) | ||||||||||||||||||||||
Total unrealized (losses) gains for postretirement obligations | (313 | ) | 109 | (204 | ) | 219 | (77 | ) | 142 | (298 | ) | 104 | (194 | ) | ||||||||||||||||||||||
Total other comprehensive income (loss) | $ | 24,752 | $ | (8,663 | ) | $ | 16,089 | $ | (33,598 | ) | $ | 11,751 | $ | (21,847 | ) | $ | (1,151 | ) | $ | 409 | $ | (742 | ) | |||||||||||||
The following table sets forth the amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit costs as of December 31: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net (gain) loss | $ | (76 | ) | $ | (280 | ) | $ | (138 | ) | |||||||||||||||||||||||||||
Transition obligation | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | (76 | ) | $ | (280 | ) | $ | (138 | ) | |||||||||||||||||||||||||||
Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligation | Weighted-average assumptions used to determine the benefit obligation as of December 31 are as follows: | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Weighted-average Assumptions | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.61 | % | 4.01 | % | 3.31 | % | ||||||||||||||||||||||||||||||
Health care cost trend: Initial | 6.5 | % | 6.75 | % | 7 | % | ||||||||||||||||||||||||||||||
Health care cost trend: Ultimate | 4.75 | % | 4.75 | % | 4.75 | % | ||||||||||||||||||||||||||||||
Year ultimate reached | 2022 | 2022 | 2022 | |||||||||||||||||||||||||||||||||
Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Cost | Weighted-average assumptions used to determine the benefit obligation as of December 31 are as follows: | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Weighted-average Assumptions | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.61 | % | 4.01 | % | 3.31 | % | ||||||||||||||||||||||||||||||
Health care cost trend: Initial | 6.5 | % | 6.75 | % | 7 | % | ||||||||||||||||||||||||||||||
Health care cost trend: Ultimate | 4.75 | % | 4.75 | % | 4.75 | % | ||||||||||||||||||||||||||||||
Year ultimate reached | 2022 | 2022 | 2022 | |||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine the net benefit costs as of December 31 are as follows: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Weighted Average Assumptions for Net Periodic Cost | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.01 | % | 3.31 | % | 4.22 | % | ||||||||||||||||||||||||||||||
Health care cost trend: Initial | 6.75 | % | 7 | % | 8 | % | ||||||||||||||||||||||||||||||
Health care cost trend: Ultimate | 4.75 | % | 4.75 | % | 4.75 | % | ||||||||||||||||||||||||||||||
Year ultimate reached | 2022 | 2022 | 2016 | |||||||||||||||||||||||||||||||||
Corridor | 10 | % | 10 | % | 10 | % | ||||||||||||||||||||||||||||||
Recognition period for gains and losses | 10 | 11 | 12 | |||||||||||||||||||||||||||||||||
Schedule of Impact of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The health care cost trend rate assumption can have a significant impact on the amounts reported for this plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||||||||||||
One-Percentage- | One-Percentage- | |||||||||||||||||||||||||||||||||||
Point Increase | Point Decrease | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | $ | 74 | $ | (67 | ) | |||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | 2 | (2 | ) | |||||||||||||||||||||||||||||||||
Schedule of Projected Benefit Payments | As of December 31, 2014, the projected benefit payments for the next ten years are as follows: | |||||||||||||||||||||||||||||||||||
Projected Benefit | ||||||||||||||||||||||||||||||||||||
Payments | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
2015 | $ | 197 | ||||||||||||||||||||||||||||||||||
2016 | 192 | |||||||||||||||||||||||||||||||||||
2017 | 187 | |||||||||||||||||||||||||||||||||||
2018 | 172 | |||||||||||||||||||||||||||||||||||
2019 | 145 | |||||||||||||||||||||||||||||||||||
2020 - 2024 | 623 | |||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | The estimated costs that will be amortized from accumulated other comprehensive income into net periodic cost for 2015 are as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||
Postretirement | ||||||||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Net gain | $ | (4 | ) | |||||||||||||||||||||||||||||||||
Transition obligation | — | |||||||||||||||||||||||||||||||||||
Total | $ | (4 | ) |
Unearned_ESOP_Shares_Tables
Unearned ESOP Shares (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Analysis of ESOP Shares Held in Suspense and Its Fair Value | The following is an analysis of ESOP shares held in suspense and the fair value of those shares as of December 31: | ||||
2012 | |||||
(dollars in thousands) | |||||
Shares in suspense, beginning of the year | 104,661 | ||||
Shares allocated | (104,661 | ) | |||
Shares acquired | — | ||||
Shares in suspense, end of the year | — | ||||
Fair market value of shares in suspense | — | ||||
Interest Paid on ESOP Loan and Dividends Received on Unallocated Shares | Interest paid on the ESOP loan and dividends received on unallocated shares for the year ended December 31 were: | ||||
2012 | |||||
(dollars in thousands) | |||||
Interest paid on ESOP loan | $ | 13 | |||
Dividends on unallocated shares | 19 | ||||
Incentive_Compensation_Plan_Ta
Incentive Compensation Plan (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | The following provides detail on the restricted stock awards which were issued and outstanding in 2014, 2013 and 2012 in order to retain and attract key employees. The grant date fair value of the restricted stock awards is equal to the price of First Commonwealth’s common stock on grant date. | ||||||||||||||||||||
Grant Date | Shares issued | Grant Price | Vesting Date | Number of Equal Vesting Periods | |||||||||||||||||
November 17, 2014 | 3,500 | $ | 9.26 | November 17, 2017 | 1 | ||||||||||||||||
April 8, 2014 | 27,500 | 8.89 | April 8, 2017 | 3 | |||||||||||||||||
March 24, 2014 | 46,000 | 9.18 | March 24, 2017 | 1 | |||||||||||||||||
March 4, 2014 | 5,000 | 8.75 | March 4, 2017 | 1 | |||||||||||||||||
January 1, 2014 | 12,626 | 8.82 | December 31, 2014 | 1 | |||||||||||||||||
August 16, 2013 | 3,000 | 7.57 | August 16, 2016 | 1 | |||||||||||||||||
May 31, 2013 | 45,000 | 7.21 | May 31, 2016 | 3 | |||||||||||||||||
March 1, 2013 | 10,000 | 7.35 | March 1, 2016 | 1 | |||||||||||||||||
February 24, 2012 | 34,000 | 5.96 | December 31, 2014 | 1 | |||||||||||||||||
February 24, 2012 | 90,000 | 5.96 | February 24, 2015 | 1 | |||||||||||||||||
January 1, 2012 | 100,000 | 5.26 | January 1, 2016 | 4 | |||||||||||||||||
November 21, 2011 | 10,000 | 4.41 | November 21, 2014 | 1 | |||||||||||||||||
April 1, 2011 | 25,000 | 6.82 | April 1, 2016 | 1 | |||||||||||||||||
January 22, 2010 | 30,120 | 5.7 | January 22, 2012 | 2 | |||||||||||||||||
Unvested Service-Based Restricted Stock Awards | A summary of the status of First Commonwealth’s unvested service-based restricted stock awards as of December 31 and changes for the years ended on those dates is presented below: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
Outstanding, beginning of the year | 271,000 | $ | 6.07 | 253,000 | $ | 5.71 | 50,060 | $ | 6 | ||||||||||||
Granted | 94,626 | 9.03 | 58,000 | 7.25 | 224,000 | 5.65 | |||||||||||||||
Vested | (98,487 | ) | 6.18 | (35,000 | ) | 5.46 | (17,060 | ) | 5.73 | ||||||||||||
Forfeited | (2,139 | ) | 5.96 | (5,000 | ) | 5.96 | (4,000 | ) | 5.96 | ||||||||||||
Outstanding, end of the year | 265,000 | 7.08 | 271,000 | 6.07 | 253,000 | 5.71 | |||||||||||||||
Schedule of Restricted Stock Units Granted Based on Performance [Table Text Block] | The following provides detail on restricted stock awards estimated to be granted on a performance award basis during 2014, 2013 and 2012. These plans were previously approved by the Board of Directors. | ||||||||||||||||||||
Grant Date | Target Share Award | Performance Period (years) | Award if threshold met | Award if targets are met | Award if targets exceeded | Award if threshold not achieved | Vesting After Performance Period (years) | Final vesting | |||||||||||||
January 17, 2011 | 54,166 | 3 | 40 | % | 100 | % | 200 | % | — | % | 1 | January 17, 2014 | |||||||||
February 24, 2012 | 68,000 | 3 | 40 | % | 100 | % | 200 | % | — | % | 1 | December 31, 2015 | |||||||||
January 28, 2013 | 128,611 | 3 | 40 | % | 100 | % | 200 | % | — | % | 1 | December 31, 2016 | |||||||||
January 27, 2014 | 125,000 | 3 | 40 | % | 100 | % | 200 | % | — | % | 0 | December 31, 2016 | |||||||||
Unvested Target Award | The following table summarizes the estimated unvested target share awards for the Plans as of December 31: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Outstanding, beginning of the year | 250,777 | 151,333 | 93,333 | ||||||||||||||||||
Granted | 126,389 | 138,611 | 74,000 | ||||||||||||||||||
Issued | (12,626 | ) | — | — | |||||||||||||||||
Forfeited | (80,540 | ) | (39,167 | ) | (16,000 | ) | |||||||||||||||
Outstanding, end of the year | 284,000 | 250,777 | 151,333 | ||||||||||||||||||
Outstanding Stock Options | A summary of the status of First Commonwealth’s outstanding stock options as of December 31 and changes for the years ended on those dates is presented below: | ||||||||||||||||||||
12/31/14 | 12/31/13 | 12/31/12 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Outstanding, beginning of the year | 27,000 | $ | 14.49 | 196,322 | $ | 11.64 | 496,863 | $ | 10.03 | ||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||
Exercised | — | — | — | — | (130,672 | ) | 6.76 | ||||||||||||||
Forfeited | (12,000 | ) | 14.41 | (169,322 | ) | 11.19 | (169,869 | ) | 10.68 | ||||||||||||
Balance, end of the year | 15,000 | 14.55 | 27,000 | 14.49 | 196,322 | 11.64 | |||||||||||||||
Exercisable at the end of the year | 15,000 | 14.55 | 27,000 | 14.49 | 196,322 | 11.64 | |||||||||||||||
Components of Stock Options Outstanding | The following table summarizes information about the stock options outstanding at December 31, 2014: | ||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Exercise Price | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contract | Price | Price | |||||||||||||||||||
Life | |||||||||||||||||||||
$14.55 | 15,000 | 0 | $ | 14.55 | 15,000 | $ | 14.55 | ||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Related Party Transactions [Abstract] | ||||
Loans to Related Parties | The following is an analysis of loans to related parties (dollars in thousands): | |||
31-Dec-13 | $ | 683 | ||
Advances | 297 | |||
Repayments | (258 | ) | ||
Other | — | |||
31-Dec-14 | $ | 722 | ||
Regulatory_Restrictions_and_Ca1
Regulatory Restrictions and Capital Adequacy (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||
Schedule of Capital Amount and Ratio Considered to be Capitalized | , First Commonwealth Bank was considered well capitalized under the regulatory framework for prompt corrective action as in effect on that date. To be considered well capitalized under the rules in effect through December 31, 2014, the bank must maintain minimum Total risk-based capital, Tier I risk-based capital and Tier I leverage ratios as set forth in the table below: | ||||||||||||||||||||
Actual | Regulatory Minimum | Well Capitalized Regulatory Guidelines | |||||||||||||||||||
Capital | Ratio | Capital | Ratio | Capital | Ratio | ||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Total Capital to Risk Weighted Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 662,733 | 12.79 | % | $ | 414,460 | 8 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 647,500 | 12.48 | 415,217 | 8 | $ | 519,021 | 10 | % | |||||||||||||
Tier I Capital to Risk Weighted Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 607,602 | 11.73 | % | $ | 207,230 | 4 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 592,369 | 11.41 | 207,608 | 4 | $ | 311,413 | 6 | % | |||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 607,602 | 9.85 | % | $ | 246,738 | 4 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 592,369 | 9.66 | 245,276 | 4 | $ | 306,595 | 5 | % | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Total Capital to Risk Weighted Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 656,235 | 13.26 | % | $ | 396,009 | 8 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 637,415 | 12.87 | 396,275 | 8 | $ | 495,344 | 10 | % | |||||||||||||
Tier I Capital to Risk Weighted Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 598,851 | 12.1 | % | $ | 198,004 | 4 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 580,031 | 11.71 | 198,138 | 4 | $ | 297,206 | 6 | % | |||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||
First Commonwealth Financial Corporation | $ | 598,851 | 10 | % | $ | 239,430 | 4 | % | N/A | N/A | |||||||||||
First Commonwealth Bank | 580,031 | 9.75 | 237,993 | 4 | $ | 297,491 | 5 | % | |||||||||||||
Condensed_Financial_Informatio1
Condensed Financial Information of First Commonwealth Financial Corporation (parent company only) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Statements of Financial Condition | ||||||||||||
Statements of Financial Condition | December 31, | |||||||||||
2014 | 2013 | |||||||||||
(dollars in thousands) | ||||||||||||
Assets | ||||||||||||
Cash | $ | 10,402 | $ | 8,370 | ||||||||
Loans | 24 | 27 | ||||||||||
Investment in subsidiaries | 712,610 | 696,438 | ||||||||||
Investment in unconsolidated subsidiary trusts | 2,182 | 2,182 | ||||||||||
Investment in jointly-owned company | 8,749 | 8,559 | ||||||||||
Premises and equipment, net | 4,287 | 6,376 | ||||||||||
Receivable from subsidiaries | — | 267 | ||||||||||
Dividends receivable from subsidiaries | — | 1,319 | ||||||||||
Other assets | 50,988 | 62,633 | ||||||||||
Total assets | $ | 789,242 | $ | 786,171 | ||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Accrued expenses and other liabilities | $ | 930 | $ | 2,307 | ||||||||
Subordinated debentures payable | 72,167 | 72,167 | ||||||||||
Shareholders’ equity | 716,145 | 711,697 | ||||||||||
Total liabilities and shareholders’ equity | $ | 789,242 | $ | 786,171 | ||||||||
Statements of Operations | ||||||||||||
Statements of Income | For the years ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
Interest and dividends | $ | 1 | $ | 1 | $ | 1 | ||||||
Dividends from subsidiaries | 49,207 | 65,140 | 64,342 | |||||||||
Interest expense | (2,335 | ) | (3,128 | ) | (5,711 | ) | ||||||
Other income | 1,251 | 2,653 | 12,581 | |||||||||
Operating expense | (6,766 | ) | (8,820 | ) | (19,061 | ) | ||||||
Income (loss) before taxes and equity in undistributed (loss) earnings of subsidiaries | 41,358 | 55,846 | 52,152 | |||||||||
Applicable income tax benefits | 2,968 | 3,384 | 4,364 | |||||||||
Income before equity in undistributed (loss) earnings of subsidiaries | 44,326 | 59,230 | 56,516 | |||||||||
Equity in undistributed earnings (loss) of subsidiaries | 127 | (17,748 | ) | (14,562 | ) | |||||||
Net income | $ | 44,453 | $ | 41,482 | $ | 41,954 | ||||||
Statements of Cash Flow | ||||||||||||
For the years ended December 31, | ||||||||||||
Statements of Cash Flow | 2014 | 2013 | 2012 | |||||||||
(dollars in thousands) | ||||||||||||
Operating Activities | ||||||||||||
Net income | $ | 44,453 | $ | 41,482 | $ | 41,954 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 2,150 | 3,030 | 3,719 | |||||||||
Net gain (loss) on sales of assets | — | 17 | (107 | ) | ||||||||
(Increase) decrease in prepaid income taxes | (487 | ) | 3,044 | (3,044 | ) | |||||||
Undistributed equity in subsidiaries | (127 | ) | 17,748 | 14,562 | ||||||||
Other net | 13,077 | 12,964 | 8,789 | |||||||||
Net cash provided by operating activities | 59,066 | 78,285 | 65,873 | |||||||||
Investing Activities | ||||||||||||
Net change in loans | 3 | 4 | 4 | |||||||||
Purchases of premises and equipment | (47 | ) | (123 | ) | (3,005 | ) | ||||||
Proceeds from sale of other assets | 13 | 1,132 | 4,309 | |||||||||
Net cash (used in) provided by investing activities | (31 | ) | 1,013 | 1,308 | ||||||||
Financing Activities | ||||||||||||
Repayments of subordinated debenture | — | (34,702 | ) | — | ||||||||
Discount on dividend reinvestment plan purchases | (65 | ) | (112 | ) | (92 | ) | ||||||
Dividends paid | (26,174 | ) | (22,344 | ) | (18,759 | ) | ||||||
Proceeds from reissuance of treasury stock | 192 | 176 | 1,028 | |||||||||
Purchase of treasury stock | (30,956 | ) | (33,439 | ) | (36,242 | ) | ||||||
Stock option tax benefit | — | — | 1 | |||||||||
Net cash used in financing activities | (57,003 | ) | (90,421 | ) | (54,064 | ) | ||||||
Net increase (decrease) in cash | 2,032 | (11,123 | ) | 13,117 | ||||||||
Cash at beginning of year | 8,370 | 19,493 | 6,376 | |||||||||
Cash at end of year | $ | 10,402 | $ | 8,370 | $ | 19,493 | ||||||
Statement_of_Accounting_Polici2
Statement of Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Business segments | 1 | |
Equity investments | 20.00% | |
Loans past due days | 90 days | |
Excess impaired credits | $100,000 | |
Software purchases and developed are capitalized and amortized on straight-line basis | 7 years | |
Future death benefit [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Other liabilities | $3,900,000 | $3,600,000 |
Supplemental_Comprehensive_Inc2
Supplemental Comprehensive Income Disclosures - Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income [Line Items] | |||
Unrealized holding (losses) gains on securities arising during the period, Pretax Amount | $25,153 | ($34,975) | ($661) |
Less: reclassification adjustment for (gains) losses on securities included in net income, Pretax Amount | -550 | 1,158 | -192 |
Total Unrealized (Losses) Gains on Securities, before Tax | 24,603 | -33,817 | -853 |
Transition obligation | 0 | 0 | 2 |
Net (loss) gain, Pretax Amount | -313 | 219 | -300 |
Total Unrealized Gains (Losses) for Postretirement Obligations, Before Tax | -313 | 219 | -298 |
Total other comprehensive (loss) income, Pretax Amount | 24,752 | -33,598 | -1,151 |
Unrealized holding (losses) gains on securities arising during the period, Tax (Expense) Benefit | -8,803 | 12,233 | 238 |
Less: reclassification adjustment for (gains) losses on securities included in net income, Tax (Expense) Benefit | 193 | -405 | 67 |
Total Unrealized (Losses) Gains on Securities, Tax (Expense) Benefit | -8,610 | 11,828 | 305 |
Transition obligation, Tax (Expense) Benefit | 0 | 0 | -1 |
Net (loss) gain, Tax (Expense) Benefit | 109 | -77 | 105 |
Total Unrealized Gains (Losses) for Postretirement Obligations, Tax (Expense) Benefit | 109 | -77 | 104 |
Total other comprehensive (loss) income, Tax (Expense) Benefit | -8,663 | 11,751 | 409 |
Unrealized holding (losses) gains on securities arising during the period, Net of Tax Amount | 16,350 | -22,742 | -423 |
Less: reclassification adjustment for (gains) losses on securities included in net income, Net of Tax Amount | -357 | 753 | -125 |
Total Unrealized (Losses) Gains on Securities, Net of Tax | 15,993 | -21,989 | -548 |
Transition obligation, Net of Tax Amount | 0 | 0 | 1 |
Net (loss) gain, Net of Tax Amount | -204 | 142 | -195 |
Total Unrealized Gains (Losses) for Postretirement Obligations, Net of Tax | -204 | 142 | -194 |
Total other comprehensive (loss) Income | $16,089 | ($21,847) | ($742) |
Supplemental_Comprehensive_Inc3
Supplemental Comprehensive Income Disclosures Supplemental Comprehensive Income Disclosures (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated other comprehensive (loss) income, net | ($4,499) | ($20,588) | $1,259 | $2,001 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 16,657 | -22,742 | -423 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -364 | 753 | -125 | |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Transition Asset (Obligation), Recognized in Net Periodic Benefit Cost, Net of Tax | 0 | 0 | 1 | |
Net (loss) gain, Net of Tax Amount | -204 | 142 | -195 | |
Total other comprehensive (loss) income, Net of Tax Amount | 16,089 | -21,847 | -742 | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated other comprehensive (loss) income, net | -4,875 | -20,868 | 1,121 | 1,669 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 16,350 | -22,742 | -423 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -357 | 753 | -125 | |
Total other comprehensive (loss) income, Net of Tax Amount | 15,993 | -21,989 | -548 | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated other comprehensive (loss) income, net | 300 | 280 | 138 | 332 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Transition Asset (Obligation), Recognized in Net Periodic Benefit Cost, Net of Tax | 0 | 0 | 1 | |
Net (loss) gain, Net of Tax Amount | -204 | 142 | -195 | |
Total other comprehensive (loss) income, Net of Tax Amount | ($204) | $142 | ($194) |
Supplemental_Cash_Flow_Disclos2
Supplemental Cash Flow Disclosures - Non-cash Investing and Financing Activities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash paid during the year for: | |||
Interest | $18,943 | $23,022 | $31,597 |
Income taxes | 10,700 | 3,080 | 11,641 |
Non-cash investing and financing activities: | |||
ESOP loan reductions | 0 | 0 | 1,600 |
Loans transferred to other real estate owned and repossessed assets | 5,061 | 12,326 | 4,979 |
Other Real Estate Owned and Settled Out of Period | 0 | 348 | 0 |
Fair value of loans transferred from held to maturity to available for sale | 3,035 | 20,135 | 0 |
Gross (decrease) increase in market value adjustment to securities available for sale | 24,601 | -33,792 | -874 |
Unsettled treasury stock repurchases | $0 | $0 | $1,222 |
Earnings_per_Share_Composition
Earnings per Share - Composition of Weighted-Average Common Shares (Denominator) Used in Basic and Diluted Earnings Per Share (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Weighted average common shares issued | 105,563,455 | 105,563,455 | 105,563,455 |
Average treasury shares | -12,294,217 | -8,363,083 | -1,456,953 |
Averaged unearned ESOP shares | 0 | 0 | -38,393 |
Average unearned nonvested shares | -154,584 | -172,215 | -182,713 |
Weighted average common shares and common stock equivalents used to calculate basic earnings per share | 93,114,654 | 97,028,157 | 103,885,396 |
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share | 0 | 1,675 | 171 |
Additional common stock equivalents (stock options) used to calculate diluted earnings per share | 0 | 0 | 96 |
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share | 93,114,654 | 97,029,832 | 103,885,663 |
Earnings_per_Share_Common_Stoc
Earnings per Share - Common Stock Equivalents Not Included in Computation of Diluted Earnings Per Share (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, par value (in dollars per share) | 1 | 1 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, shares | 15,000 | 27,000 | 268,630 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, shares | 106,977 | 81,770 | 163,509 |
Minimum [Member] | Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, par value (in dollars per share) | 14.55 | 14.41 | 6.9 |
Minimum [Member] | Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, par value (in dollars per share) | 5.26 | 4.41 | 5.26 |
Maximum [Member] | Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, par value (in dollars per share) | 14.55 | 14.55 | 14.55 |
Maximum [Member] | Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, par value (in dollars per share) | 9.26 | 7.57 | 6.82 |
Cash_and_Due_from_Banks_Additi
Cash and Due from Banks - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Cash and Due from Banks [Abstract] | ||
Cash or balances held with the Federal Reserve Bank | $4.90 | $2.90 |
Derivatives_Credit_Value_Adjus
Derivatives - Credit Value Adjustment Recorded Related to Notional Amount of Derivatives Outstanding (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Derivative, Fair Value, Net | ($268) | $77 |
Interest rate swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 273,388 | 274,718 |
Interest Rate Cap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 6,656 | 7,500 |
Credit Default Swap, Buying Protection [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 113,624 | 82,197 |
Credit Default Swap, Selling Protection [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | ($17,296) | ($19,161) |
Derivatives_Schedule_of_Change
Derivatives - Schedule of Change in Fair Value of Derivative Assets and Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Non-hedging interest rate derivatives, increase (decrease) in other income | ($345) | $1,428 | $755 |
Derivatives_Additional_Informa
Derivatives - Additional Information (Detail) | Dec. 31, 2014 |
Derivative | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Number of participation agreements for interest rate swaps, participant | 13 |
Number of participation agreements for interest rate swaps, lead bank | 3 |
Investment_Securities_Analysis
Investment Securities - Analysis of Amortized Cost and Estimated Fair Values of Securities Available for Sale (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investment Securities [Line Items] | ||
Amortized Cost | $1,317,318 | $1,350,466 |
Gross Unrealized Gains | 16,921 | 15,565 |
Gross Unrealized Losses | -24,420 | -47,666 |
Estimated Fair Value of Available for Sale | 1,309,819 | 1,318,365 |
US States and Political Subdivisions Debt Securities [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 27,058 | 80 |
Gross Unrealized Gains | 362 | 0 |
Gross Unrealized Losses | -43 | 0 |
Estimated Fair Value of Available for Sale | 27,377 | 80 |
Corporate Securities [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 6,682 | 6,693 |
Gross Unrealized Gains | 573 | 328 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value of Available for Sale | 7,255 | 7,021 |
Pooled Trust Preferred Collateralized Debt Obligations [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 41,926 | 42,040 |
Gross Unrealized Gains | 309 | 0 |
Gross Unrealized Losses | -13,236 | -18,517 |
Estimated Fair Value of Available for Sale | 28,999 | 23,523 |
Debt Securities [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 1,315,898 | 1,349,046 |
Gross Unrealized Gains | 16,921 | 15,565 |
Gross Unrealized Losses | -24,420 | -47,666 |
Estimated Fair Value of Available for Sale | 1,308,399 | 1,316,945 |
Mortgage - Backed Securities - Residential [Member] | US Government Agencies Debt Securities [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 23,344 | 22,639 |
Gross Unrealized Gains | 2,595 | 2,624 |
Gross Unrealized Losses | -3 | -59 |
Estimated Fair Value of Available for Sale | 25,936 | 25,204 |
Mortgage - Backed Securities - Residential [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 947,635 | 1,009,519 |
Gross Unrealized Gains | 13,076 | 12,531 |
Gross Unrealized Losses | -9,830 | -27,163 |
Estimated Fair Value of Available for Sale | 950,881 | 994,887 |
Mortgage - Backed Securities - Commercial [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 72 | 104 |
Gross Unrealized Gains | 2 | 1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value of Available for Sale | 74 | 105 |
Other Government - Sponsored Enterprises [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 269,181 | 267,971 |
Gross Unrealized Gains | 4 | 81 |
Gross Unrealized Losses | -1,308 | -1,927 |
Estimated Fair Value of Available for Sale | 267,877 | 266,125 |
Equities [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 1,420 | 1,420 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value of Available for Sale | $1,420 | $1,420 |
Investment_Securities_Addition
Investment Securities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Maturity of contract | less than one year | ||
Approximate year of maturity | 30 years | ||
Gross Unrealized Losses | $24,420,000 | $47,666,000 | |
Amortized Cost | 1,317,318,000 | 1,350,466,000 | |
Net securities gains (losses) | 550,000 | -1,158,000 | 192,000 |
Available-for-sale securities pledged as collateral | 563,200,000 | 594,900,000 | |
Pooled Trust Preferred Collateralized Debt Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | 500,000 | 1,300,000 | |
Amortized Cost | 6,600,000 | ||
Net securities gains (losses) | 200,000 | ||
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Non-bank subsidiaries [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Sale of available securities | 200,000 | ||
Single issuer trust preferred securities [Member] | Non-bank subsidiaries [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Sale of available securities | $5,100,000 |
Investment_Securities_Amortize
Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities Available for Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Investment Securities [Line Items] | |||
Due within 1 year, Amortized Cost | $3,000 | ||
Due after 1 but within 5 years, Amortized Cost | 266,181 | ||
Due after 5 but within 10 years, Amortized Cost | 21,849 | ||
Due after 10 years, Amortized Cost | 53,817 | ||
Debt securities gross, Amortized Cost | 344,847 | ||
Amortized Cost | 1,317,318 | 1,350,466 | |
Total debt securities, Amortized Cost | 1,315,898 | ||
Due within 1 year, Estimated Fair Value | 2,998 | ||
Due after 1 but within 5 years, Estimated Fair Value | 264,879 | ||
Due after 5 but within 10 years, Estimated Fair Value | 22,104 | ||
Due after 10 years, Estimated Fair Value | 41,527 | ||
Debt securities gross, Estimated Fair Value | 331,508 | ||
Estimated Fair Value of Available for Sale | 1,309,819 | 1,318,365 | |
Total debt securities, Estimated Fair Value | 1,308,399 | ||
Mortgage-Backed Securities [Member] | |||
Investment Securities [Line Items] | |||
Amortized Cost | 971,051 | [1] | |
Estimated Fair Value of Available for Sale | $976,891 | [1] | |
[1] | Mortgage Backed Securities include an amortized cost of $23.3 million and a fair value of $25.9 million for Obligations of U.S. Government agencies issued by Ginnie Mae and Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac, which had an amortized cost of $947.7 million and a fair value of $951.0 million. |
Investment_Securities_Amortize1
Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities Available for Sale (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment Securities [Line Items] | ||
Amortized Cost | $1,317,318 | $1,350,466 |
Estimated Fair Value of Available for Sale | 1,309,819 | 1,318,365 |
US Government Agencies Debt Securities [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 23,300 | |
Estimated Fair Value of Available for Sale | 25,900 | |
Obligations of U.S. Government-Sponsored Enterprises [Member] | ||
Investment Securities [Line Items] | ||
Amortized Cost | 947,700 | |
Estimated Fair Value of Available for Sale | $951,000 |
Investment_Securities_Proceeds
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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale | $132,868 | $671 | $0 |
Sales Transactions: | |||
Gross gains | 291 | 233 | 0 |
Gross losses | -243 | 0 | 0 |
Total gain (losses) from sales transactions | 48 | 233 | 0 |
Maturities, calls and impairment: | |||
Gross gains | 502 | 4 | 192 |
Gross losses | 0 | -1,395 | 0 |
Other-than-temporary impairment | 0 | 0 | 0 |
Total gain (losses) maturities and impairment | 502 | -1,391 | 192 |
Net gains (losses) and impairment | $550 | ($1,158) | $192 |
Impairment_of_Investment_Secur2
Impairment of Investment Securities - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Security | ||||||
Bank | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Corporate/Mortgage-Backed Securities, Amortized cost | $1,317,318,000 | $1,350,466,000 | ||||
Estimated Fair Value of Available for Sale | 1,309,819,000 | 1,318,365,000 | ||||
Number of banks and other financial institutions comprising the security | 279 | |||||
Number Of Pooled Securities with No Senior Class | 4 | |||||
Number of Securities with No Excess Subordination | 5 | |||||
Number of Securities with Excess Subordination | 5 | |||||
Collateral issued by financial institutions | 15,000,000,000 | |||||
Fair Value Input Coupon Rates | 10.00% | |||||
Coupon interest rate | 7.00% | |||||
Estimate of future cash flows prepayment percentage in year three | 40.00% | |||||
Estimate of future cash flows prepayment percentage thereafter | 2.00% | |||||
Prepayment rate | 5.00% | |||||
Probability percentage assigned to default bank subject to market indicators | 10.00% | |||||
Probability of default | 100.00% | |||||
Probability percentage assigned to default bank | 100.00% | |||||
Projected recovery rate | 0.00% | |||||
Net securities gains (losses) | 550,000 | -1,158,000 | 192,000 | |||
Other investments | 44,545,000 | 35,444,000 | ||||
Proceeds from the redemption of FHLB stock | 31,819,000 | 10,904,000 | 11,568,000 | |||
Excess recognized as an adjustment to yield | -1,297,000 | [1] | -2,375,000 | [1] | -1,462,000 | [1] |
Other than-temporary impairment charge | 0 | 13,356,000 | 0 | |||
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 | 7.00% | |||||
Collateral issued by financial institutions | 15,000,000,000 | |||||
Probabilities for performing collateral range | 0.33% | |||||
Excess percent value of future cash flows over current book value | 22.00% | |||||
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 | 55.00% | |||||
Collateral issued by financial institutions | 2,000,000,000 | |||||
Probabilities for performing collateral range | 75.00% | |||||
Excess percent value of future cash flows over current book value | 141.00% | |||||
Over fifteen billion [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Prepayment rate | 100.00% | |||||
Corporate Securities [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Corporate/Mortgage-Backed Securities, Amortized cost | 6,682,000 | 6,693,000 | ||||
Estimated Fair Value of Available for Sale | 7,255,000 | 7,021,000 | ||||
Obligations of U.S. Government-Sponsored Enterprises [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Total unrealized losses | 46.00% | |||||
Pooled Trust Preferred Collateralized Debt Obligations [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Total unrealized losses | 54.00% | |||||
Corporate/Mortgage-Backed Securities, Amortized cost | 41,926,000 | 42,040,000 | ||||
Estimated Fair Value of Available for Sale | 28,999,000 | 23,523,000 | ||||
Mm Comm Ix [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Other than-temporary impairment charge | 13,400,000 | |||||
Corporate Securities [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Corporate/Mortgage-Backed Securities, Amortized cost | 6,600,000 | |||||
Net securities gains (losses) | $1,300,000 | |||||
Trust preferred collateralized debt obligations [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Percentage of Current Performing Collateral | 0.00% | |||||
[1] | Represents the increase in cash flows recognized either as principal payments or interest income during the period. |
Impairment_of_Investment_Secur3
Impairment of Investment Securities - Schedule of Unrealized Losses and Estimated Fair Values (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Unrealized Losses On Securities [Line Items] | |||
Estimated Fair Value, Less Than 12 Months | $229,583 | $820,209 | |
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses | -694 | -24,588 | |
Estimated Fair Value, 12 Months or More | 523,463 | 110,947 | |
Gross Unrealized Losses 12 Months or More | -23,726 | -23,078 | |
Total Estimated Fair Value | 753,046 | 931,156 | |
Total Gross Unrealized Losses | -24,420 | -47,666 | |
Pooled Trust Preferred Collateralized Debt Obligations [Member] | |||
Schedule Of Unrealized Losses On Securities [Line Items] | |||
Estimated Fair Value, Less Than 12 Months | 0 | 2,401 | |
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses | 0 | -237 | |
Estimated Fair Value, 12 Months or More | 24,356 | 21,122 | |
Gross Unrealized Losses 12 Months or More | -13,236 | -18,280 | |
Total Estimated Fair Value | 24,356 | 23,523 | |
Total Gross Unrealized Losses | -13,236 | -18,517 | |
Obligations of U.S. Government [Member] | Mortgage - Backed Securities - Residential [Member] | |||
Schedule Of Unrealized Losses On Securities [Line Items] | |||
Estimated Fair Value, Less Than 12 Months | 2,318 | 2,035 | |
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses | -3 | -59 | |
Estimated Fair Value, 12 Months or More | 0 | 0 | |
Gross Unrealized Losses 12 Months or More | 0 | 0 | [1] |
Total Estimated Fair Value | 2,318 | 2,035 | |
Total Gross Unrealized Losses | -3 | -59 | |
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage - Backed Securities - Residential [Member] | |||
Schedule Of Unrealized Losses On Securities [Line Items] | |||
Estimated Fair Value, Less Than 12 Months | 111,646 | 632,231 | |
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses | -419 | -22,844 | |
Estimated Fair Value, 12 Months or More | 368,706 | 65,324 | |
Gross Unrealized Losses 12 Months or More | -9,411 | -4,319 | [1] |
Total Estimated Fair Value | 480,352 | 697,555 | |
Total Gross Unrealized Losses | -9,830 | -27,163 | |
Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member] | |||
Schedule Of Unrealized Losses On Securities [Line Items] | |||
Estimated Fair Value, Less Than 12 Months | 112,473 | 183,542 | |
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses | -229 | -1,448 | |
Estimated Fair Value, 12 Months or More | 130,401 | 24,501 | |
Gross Unrealized Losses 12 Months or More | -1,079 | -479 | |
Total Estimated Fair Value | 242,874 | 208,043 | |
Total Gross Unrealized Losses | -1,308 | -1,927 | |
US States and Political Subdivisions Debt Securities [Member] | Other Government - Sponsored Enterprises [Member] | |||
Schedule Of Unrealized Losses On Securities [Line Items] | |||
Estimated Fair Value, Less Than 12 Months | 3,146 | ||
Available For Sale Securities Continuous Unrealized Income Loss Position Less Than Twelve Months Aggregate Gain Losses | -43 | ||
Estimated Fair Value, 12 Months or More | 0 | ||
Gross Unrealized Losses 12 Months or More | 0 | ||
Total Estimated Fair Value | 3,146 | ||
Total Gross Unrealized Losses | ($43) | ||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmI1NmI2MzAzMGM5NjRjMWU5ZGMxYzI2ZGEyMmQzYTEzfFRleHRTZWxlY3Rpb246NzVCMjZEOTJCQzY0RDlBNTY5MzhCOTgzMTM1RDIyOUEM} |
Impairment_of_Investment_Secur4
Impairment of Investment Securities - Pooled Trust Preferred Collateralized Debt Obligations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | $1,317,318 | $1,350,466 |
Estimated Fair Value of Available for Sale | 1,309,819 | 1,318,365 |
Mezzanine [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 41,926 | |
Estimated Fair Value of Available for Sale | 28,999 | |
Unrealized Gain (Loss) | -12,927 | |
Mezzanine [Member] | Pre TSL IV [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 1,830 | |
Estimated Fair Value of Available for Sale | 1,326 | |
Unrealized Gain (Loss) | -504 | |
Debt Instrument, Credit Rating | B1/BB | |
Number of Banks | 6 | |
Deferrals and Defaults as a % of Current Collateral | 18.05% | |
Excess Subordination as a % of Current Performing Collateral | 54.84% | |
Mezzanine [Member] | Pre TSL V [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 60 | |
Estimated Fair Value of Available for Sale | 130 | |
Unrealized Gain (Loss) | 70 | |
Debt Instrument, Credit Rating | C/- | |
Number of Banks | 3 | |
Deferrals and Defaults as a % of Current Collateral | 100.00% | |
Excess Subordination as a % of Current Performing Collateral | 0.00% | |
Mezzanine [Member] | Pre TSL VII [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 2,779 | |
Estimated Fair Value of Available for Sale | 2,987 | |
Unrealized Gain (Loss) | 208 | |
Debt Instrument, Credit Rating | Ca/- | |
Number of Banks | 14 | |
Deferrals and Defaults as a % of Current Collateral | 49.68% | |
Excess Subordination as a % of Current Performing Collateral | 0.00% | |
Mezzanine [Member] | Pre TSL VIII [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 1,970 | |
Estimated Fair Value of Available for Sale | 1,305 | |
Unrealized Gain (Loss) | -665 | |
Debt Instrument, Credit Rating | C/C | |
Number of Banks | 29 | |
Deferrals and Defaults as a % of Current Collateral | 59.12% | |
Excess Subordination as a % of Current Performing Collateral | 0.00% | |
Mezzanine [Member] | Pre TSL IX [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 2,340 | |
Estimated Fair Value of Available for Sale | 1,442 | |
Unrealized Gain (Loss) | -898 | |
Debt Instrument, Credit Rating | B3/C | |
Number of Banks | 39 | |
Deferrals and Defaults as a % of Current Collateral | 28.91% | |
Excess Subordination as a % of Current Performing Collateral | 6.73% | |
Mezzanine [Member] | Pre TSL X [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 1,495 | |
Estimated Fair Value of Available for Sale | 1,526 | |
Unrealized Gain (Loss) | 31 | |
Debt Instrument, Credit Rating | Caa1/C | |
Number of Banks | 44 | |
Deferrals and Defaults as a % of Current Collateral | 31.03% | |
Excess Subordination as a % of Current Performing Collateral | 0.00% | |
Mezzanine [Member] | Pre TSL XII [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 5,523 | |
Estimated Fair Value of Available for Sale | 3,361 | |
Unrealized Gain (Loss) | -2,162 | |
Debt Instrument, Credit Rating | B3/C | |
Number of Banks | 66 | |
Deferrals and Defaults as a % of Current Collateral | 26.96% | |
Excess Subordination as a % of Current Performing Collateral | 0.00% | |
Mezzanine [Member] | Pre TSL XIII [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 12,464 | |
Estimated Fair Value of Available for Sale | 8,455 | |
Unrealized Gain (Loss) | -4,009 | |
Debt Instrument, Credit Rating | Caa1/C | |
Number of Banks | 57 | |
Deferrals and Defaults as a % of Current Collateral | 19.26% | |
Excess Subordination as a % of Current Performing Collateral | 30.97% | |
Mezzanine [Member] | Pre TSL XIV [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 13,035 | |
Estimated Fair Value of Available for Sale | 8,081 | |
Unrealized Gain (Loss) | -4,954 | |
Debt Instrument, Credit Rating | Caa1/C | |
Number of Banks | 56 | |
Deferrals and Defaults as a % of Current Collateral | 24.54% | |
Excess Subordination as a % of Current Performing Collateral | 36.53% | |
Mezzanine [Member] | MMCap I [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Amortized Cost | 430 | |
Estimated Fair Value of Available for Sale | 386 | |
Unrealized Gain (Loss) | ($44) | |
Debt Instrument, Credit Rating | Ca/C | |
Number of Banks | 11 | |
Deferrals and Defaults as a % of Current Collateral | 59.52% | |
Excess Subordination as a % of Current Performing Collateral | 20.89% | |
Maximum [Member] | ||
Impairment Of Investment Securities [Line Items] | ||
Excess Subordination as a % of Current Performing Collateral | 55.00% |
Impairment_of_Investment_Secur5
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 $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Impairment of Investment Securities Disclosure [Abstract] | ||||||
Balance, beginning | $27,543 | [1] | $43,274 | [1] | $44,736 | [1] |
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized | 0 | 0 | 0 | |||
Additional credit losses on debt securities for which other-than- temporary impairment was previously recognized | 0 | 0 | 0 | |||
Increases in cash flows expected to be collected, recognized over the remaining life of the security | -1,297 | [2] | -2,375 | [2] | -1,462 | [2] |
Reduction for debt securities called during the period | 0 | -13,356 | 0 | |||
Balance, ending | $26,246 | $27,543 | [1] | $43,274 | [1] | |
[1] | The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods. | |||||
[2] | Represents the increase in cash flows recognized either as principal payments or interest income during the period. |
Loans_and_Allowance_for_Credit2
Loans and Allowance for Credit Losses - Outstanding Balances of Loan (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $4,457,308 | $4,283,833 | $4,204,704 |
Commercial, financial, agricultural and other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,052,109 | 1,021,056 | |
Real estate construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 120,785 | 93,289 | |
Residential real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,226,344 | 1,262,718 | |
Commercial real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,405,256 | 1,296,472 | |
Loans to individuals [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $652,814 | $610,298 |
Loans_and_Allowance_for_Credit3
Loans and Allowance for Credit Losses - Credit Risk Profile by Creditworthiness (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | $4,457,308 | $4,283,833 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 4,317,182 | 4,121,472 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 72,370 | |
OAEM [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 79,124 | |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 63,595 | 83,237 |
Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 4,161 | 0 |
Total Non-Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 140,126 | 162,361 |
Commercial, financial, agricultural and other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 1,052,109 | 1,021,056 |
Commercial, financial, agricultural and other [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 983,357 | 943,107 |
Commercial, financial, agricultural and other [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 32,563 | |
Commercial, financial, agricultural and other [Member] | OAEM [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 35,429 | |
Commercial, financial, agricultural and other [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 32,028 | 42,520 |
Commercial, financial, agricultural and other [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 4,161 | 0 |
Commercial, financial, agricultural and other [Member] | Total Non-Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 68,752 | 77,949 |
Real estate construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 120,785 | 93,289 |
Real estate construction [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 112,536 | 79,679 |
Real estate construction [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 8,013 | |
Real estate construction [Member] | OAEM [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 9,710 | |
Real estate construction [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 236 | 3,900 |
Real estate construction [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate construction [Member] | Total Non-Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 8,249 | 13,610 |
Residential real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 1,226,344 | 1,262,718 |
Residential real estate [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 1,214,920 | 1,245,422 |
Residential real estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 2,315 | |
Residential real estate [Member] | OAEM [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 5,161 | |
Residential real estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 9,109 | 12,135 |
Residential real estate [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Residential real estate [Member] | Total Non-Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 11,424 | 17,296 |
Commercial real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 1,405,256 | 1,296,472 |
Commercial real estate [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 1,353,773 | 1,243,170 |
Commercial real estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 29,479 | |
Commercial real estate [Member] | OAEM [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 28,823 | |
Commercial real estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 22,004 | 24,479 |
Commercial real estate [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Commercial real estate [Member] | Total Non-Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 51,483 | 53,302 |
Loans to individuals [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 652,814 | 610,298 |
Loans to individuals [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 652,596 | 610,094 |
Loans to individuals [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | |
Loans to individuals [Member] | OAEM [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 1 | |
Loans to individuals [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 218 | 203 |
Loans to individuals [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Loans to individuals [Member] | Total Non-Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | $218 | $204 |
Loans_and_Allowance_for_Credit4
Loans and Allowance for Credit Losses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision for credit losses | $11,196,000 | $19,227,000 | $20,544,000 |
Charge-offs | 17,472,000 | 35,178,000 | 16,969,000 |
Recorded Investment | 55,251,000 | 59,383,000 | |
Nonaccrual | 42,667,000 | 45,888,000 | |
Loans held for sale | 2,502,000 | 0 | |
Total gains or losses included in earnings | 77,000 | -770,000 | |
Loans with modification to rate and payment due to amortization | 600,000 | 2,000,000 | 4,700,000 |
Minimum days required for conversion of trouble debt to be in default | 90 days | ||
Water Treatment Plant [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 2,800,000 | ||
Gas Well Servicing Operation [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 3,700,000 | ||
Commercial real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 3,300,000 | ||
Loan maturity extension | 6 months | ||
Commercial real estate [Member] | Gas Well Servicing Operation [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | 17,000,000 | ||
Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase In Commitments Related To Troubled Debt Restructured Loans | 3,700,000 | ||
Troubled Debt Restructured Loans Decreased | 900,000 | ||
Decrease in nonperforming loans | -4,100,000 | ||
Decrease In Specific Allowance For Nonperforming Loans | -600,000 | ||
Unfunded commitments related to nonperforming loans | 46,000 | ||
Non Accrual Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Decrease in nonperforming loans | 32,200,000 | ||
Unallocated [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision for credit losses | -5,926,000 | 1,090,000 | |
Charge-offs | 0 | 0 | |
Consumer Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non Accrual Status Of Loans After Number Of Days Past Due | 150 days | ||
Nonaccrual Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount Of Non Accrual Status Loan | 22,100,000 | ||
Nonaccrual Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount Of Non Accrual Status Loan | 3,800,000 | ||
Western Pennsylvania Specialty Metal Processor [Member] | Nonaccrual Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount Of Non Accrual Status Loan | 8,000,000 | ||
Western Pennsylvania Reals Estate Manager [Member] | Nonaccrual Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual | 9,900,000 | ||
Local Energy Company [Member] | Nonaccrual Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual | 10,000,000 | ||
Reserve for Off-balance Sheet Activities [Member] | Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Off balance sheet reserve to nonperforming loans | 0 | ||
Loans Held for Sale [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total gains or losses included in earnings | $77,000 | $625,000 | |
Commercial real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Modification, Subsequent Default, Number of Contracts | 1 | 0 |
Loans_and_Allowance_for_Credit5
Loans and Allowance for Credit Losses - Age Analysis of Past Due Loans by Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
30 - 59 days past due | $13,473 | $8,690 | |
60 - 89 days past due | 2,690 | 1,856 | |
90 days and greater and still accruing | 2,619 | 2,505 | |
Nonaccrual | 42,667 | 45,888 | |
Total past due and nonaccrual | 61,449 | 58,939 | |
Current | 4,395,859 | 4,224,894 | |
Loans | 4,457,308 | 4,283,833 | 4,204,704 |
Commercial Financial Agricultural And Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
30 - 59 days past due | 2,816 | 594 | |
60 - 89 days past due | 213 | 319 | |
90 days and greater and still accruing | 264 | 185 | |
Nonaccrual | 27,007 | 23,631 | |
Total past due and nonaccrual | 30,300 | 24,729 | |
Current | 1,021,809 | 996,327 | |
Loans | 1,052,109 | 1,021,056 | |
Real Estate Construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
30 - 59 days past due | 0 | 0 | |
60 - 89 days past due | 1 | 0 | |
90 days and greater and still accruing | 0 | 0 | |
Nonaccrual | 236 | 2,567 | |
Total past due and nonaccrual | 237 | 2,567 | |
Current | 120,548 | 90,722 | |
Loans | 120,785 | 93,289 | |
Residential real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
30 - 59 days past due | 5,162 | 4,002 | |
60 - 89 days past due | 1,295 | 524 | |
90 days and greater and still accruing | 1,077 | 1,041 | |
Nonaccrual | 7,900 | 10,520 | |
Total past due and nonaccrual | 15,434 | 16,087 | |
Current | 1,210,910 | 1,246,631 | |
Loans | 1,226,344 | 1,262,718 | |
Commercial real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
30 - 59 days past due | 1,797 | 1,199 | |
60 - 89 days past due | 122 | 23 | |
90 days and greater and still accruing | 0 | 13 | |
Nonaccrual | 7,306 | 8,966 | |
Total past due and nonaccrual | 9,225 | 10,201 | |
Current | 1,396,031 | 1,286,271 | |
Loans | 1,405,256 | 1,296,472 | |
Loans to individuals [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
30 - 59 days past due | 3,698 | 2,895 | |
60 - 89 days past due | 1,059 | 990 | |
90 days and greater and still accruing | 1,278 | 1,266 | |
Nonaccrual | 218 | 204 | |
Total past due and nonaccrual | 6,253 | 5,355 | |
Current | 646,561 | 604,943 | |
Loans | 652,814 | 610,298 | |
Commercial Financial Agricultural And Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,052,109 | 1,021,056 | 1,019,822 |
Real Estate Construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 120,785 | 93,289 | 87,438 |
Residential real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,226,344 | 1,262,718 | 1,241,565 |
Commercial real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,405,256 | 1,296,472 | 1,273,661 |
Loans to individuals [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $652,814 | $610,298 | $582,218 |
Loans_and_Allowance_for_Credit6
Loans and Allowance for Credit Losses - Recorded Investment and Unpaid Principal Balance for Impaired Loans with Associated Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $55,251 | $59,383 | |
Unpaid Principal Balance | 60,915 | 66,307 | |
Related Allowance | 9,461 | 8,824 | |
Average Recorded Investment | 49,794 | 78,175 | 87,979 |
Interest Income Recognized | 625 | 679 | 369 |
Commercial, financial, agricultural and other with no related allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 9,439 | 6,752 | |
Unpaid Principal Balance | 10,937 | 7,649 | |
Average Recorded Investment | 11,536 | 14,454 | 9,217 |
Interest Income Recognized | 133 | 73 | 173 |
Real estate construction with no related allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 236 | 3,486 | |
Unpaid Principal Balance | 476 | 6,664 | |
Average Recorded Investment | 1,190 | 5,923 | 11,912 |
Interest Income Recognized | 19 | 47 | 0 |
Residential real estate with no related allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 10,773 | 9,333 | |
Unpaid Principal Balance | 12,470 | 9,952 | |
Average Recorded Investment | 11,592 | 9,280 | 8,114 |
Interest Income Recognized | 210 | 211 | 72 |
Commercial real estate with no related allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 8,768 | 13,606 | |
Unpaid Principal Balance | 10,178 | 14,719 | |
Average Recorded Investment | 8,830 | 27,881 | 28,574 |
Interest Income Recognized | 98 | 250 | 66 |
Loans to individuals with no related allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 288 | 289 | |
Unpaid Principal Balance | 337 | 307 | |
Average Recorded Investment | 308 | 255 | 103 |
Interest Income Recognized | 4 | 3 | 2 |
Subtotal with no related allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 29,504 | 33,466 | |
Unpaid Principal Balance | 34,398 | 39,291 | |
Average Recorded Investment | 33,456 | 57,793 | 57,920 |
Interest Income Recognized | 464 | 584 | 313 |
Commercial, financial, agricultural and other With an allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 24,826 | 21,482 | |
Unpaid Principal Balance | 25,583 | 22,082 | |
Related Allowance | 9,304 | 7,364 | |
Average Recorded Investment | 15,797 | 16,479 | 21,979 |
Interest Income Recognized | 143 | 64 | 9 |
Real estate construction with an allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 414 | |
Unpaid Principal Balance | 0 | 737 | |
Related Allowance | 0 | 94 | |
Average Recorded Investment | 0 | 515 | 1,457 |
Interest Income Recognized | 0 | 0 | 0 |
Residential real estate With an allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 367 | 3,533 | |
Unpaid Principal Balance | 380 | 3,585 | |
Related Allowance | 56 | 1,282 | |
Average Recorded Investment | 357 | 3,200 | 1,599 |
Interest Income Recognized | 14 | 31 | 15 |
Commercial real estate With an allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 554 | 488 | |
Unpaid Principal Balance | 554 | 612 | |
Related Allowance | 101 | 84 | |
Average Recorded Investment | 184 | 188 | 5,024 |
Interest Income Recognized | 4 | 0 | 32 |
Loans to individuals With an allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Subtotal With an allowance recorded [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 25,747 | 25,917 | |
Unpaid Principal Balance | 26,517 | 27,016 | |
Related Allowance | 9,461 | 8,824 | |
Average Recorded Investment | 16,338 | 20,382 | 30,059 |
Interest Income Recognized | $161 | $95 | $56 |
Loans_and_Allowance_for_Credit7
Loans and Allowance for Credit Losses - Troubled Debt Restructured Loans and Commitments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Loans and Leases Receivable Disclosure [Abstract] | |||
Accrual status | $12,584 | $13,495 | $13,037 |
Nonaccrual status | 16,952 | 16,980 | 50,979 |
Total | 29,536 | 30,475 | 64,016 |
Letters of credit | 0 | 0 | 1,574 |
Unused lines of credit | 4,120 | 452 | 0 |
Total | $4,120 | $452 | $1,574 |
Loans_and_Allowance_for_Credit8
Loans and Allowance for Credit Losses - Troubled Debt Restructurings Identified During Period (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Contract | Contract | Contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | 77 | 82 | 60 |
Extend Maturity | $5,487 | $4,390 | $6,776 |
Modify Rate | 732 | 2,018 | 4,724 |
Modify Payments | 16,381 | 3,971 | 10,332 |
Others | 0 | 54 | |
Total Pre-Modification Outstanding Recorded Investment | 22,600 | 10,379 | 21,886 |
Post-Modification Outstanding Recorded Investment | 15,967 | 7,713 | 22,221 |
Specific Reserve | 4,665 | 1,101 | 4,915 |
Commercial, financial, agricultural and other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | 9 | 14 | 12 |
Extend Maturity | 5,487 | 3,462 | 1,599 |
Modify Rate | 0 | 0 | 187 |
Modify Payments | 14,529 | 1,677 | 9,476 |
Others | 0 | 0 | |
Total Pre-Modification Outstanding Recorded Investment | 20,016 | 5,139 | 11,262 |
Post-Modification Outstanding Recorded Investment | 13,785 | 3,104 | 11,335 |
Specific Reserve | 4,665 | 906 | 4,237 |
Real estate construction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | 2 | ||
Extend Maturity | 1,697 | ||
Modify Rate | 0 | ||
Modify Payments | 0 | ||
Others | 0 | ||
Total Pre-Modification Outstanding Recorded Investment | 1,697 | ||
Post-Modification Outstanding Recorded Investment | 2,133 | ||
Specific Reserve | 200 | ||
Residential real estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | 52 | 46 | 25 |
Extend Maturity | 0 | 347 | 200 |
Modify Rate | 629 | 418 | 132 |
Modify Payments | 1,797 | 2,116 | 697 |
Others | 0 | 48 | |
Total Pre-Modification Outstanding Recorded Investment | 2,426 | 2,881 | 1,077 |
Post-Modification Outstanding Recorded Investment | 2,062 | 2,316 | 973 |
Specific Reserve | 0 | 161 | 69 |
Commercial real estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | 1 | 5 | 4 |
Extend Maturity | 0 | 571 | 3,280 |
Modify Rate | 0 | 1,499 | 4,308 |
Modify Payments | 8 | 145 | 71 |
Others | 0 | 0 | |
Total Pre-Modification Outstanding Recorded Investment | 8 | 2,215 | 7,659 |
Post-Modification Outstanding Recorded Investment | 6 | 2,184 | 7,607 |
Specific Reserve | 0 | 34 | 409 |
Loans to individuals [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | 15 | 17 | 17 |
Extend Maturity | 0 | 10 | 0 |
Modify Rate | 103 | 101 | 97 |
Modify Payments | 47 | 33 | 88 |
Others | 0 | 6 | |
Total Pre-Modification Outstanding Recorded Investment | 150 | 144 | 191 |
Post-Modification Outstanding Recorded Investment | 114 | 109 | 173 |
Specific Reserve | $0 | $0 | $0 |
Loans_and_Allowance_for_Credit9
Loans and Allowance for Credit Losses - Allowance for Credit Losses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | $54,225 | $67,187 | $61,234 |
Charge-offs | -17,472 | -35,178 | -16,969 |
Recoveries | 4,102 | 2,989 | 2,378 |
Provision for credit losses | 11,196 | 19,227 | 20,544 |
Ending Balance | 52,051 | 54,225 | 67,187 |
Ending balance: individually evaluated for impaired | 9,461 | 8,824 | 17,778 |
Ending balance: collectively evaluated for impaired | 42,590 | 45,401 | 49,409 |
Ending balance | 4,457,308 | 4,283,833 | 4,204,704 |
Ending balance: individually evaluated for impaired | 48,442 | 52,595 | 100,187 |
Ending balance: collectively evaluated for impaired | 4,408,866 | 4,231,238 | 4,104,517 |
Commercial, financial, agricultural and other [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 22,663 | 19,852 | 18,200 |
Charge-offs | -8,911 | -18,399 | -5,207 |
Recoveries | 734 | 455 | 443 |
Provision for credit losses | 15,141 | 20,755 | 6,416 |
Ending Balance | 29,627 | 22,663 | 19,852 |
Ending balance: individually evaluated for impaired | 9,304 | 7,364 | 10,331 |
Ending balance: collectively evaluated for impaired | 20,323 | 15,299 | 9,521 |
Ending balance | 1,052,109 | 1,021,056 | 1,019,822 |
Ending balance: individually evaluated for impaired | 33,332 | 27,251 | 33,443 |
Ending balance: collectively evaluated for impaired | 1,018,777 | 993,805 | 986,379 |
Real estate construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 6,600 | 8,928 | 6,756 |
Charge-offs | -296 | -773 | -3,601 |
Recoveries | 1,340 | 501 | 582 |
Provision for credit losses | -5,581 | -2,056 | 5,191 |
Ending Balance | 2,063 | 6,600 | 8,928 |
Ending balance: individually evaluated for impaired | 0 | 94 | 300 |
Ending balance: collectively evaluated for impaired | 2,063 | 6,506 | 8,628 |
Ending balance | 120,785 | 93,289 | 87,438 |
Ending balance: individually evaluated for impaired | 193 | 3,844 | 11,177 |
Ending balance: collectively evaluated for impaired | 120,592 | 89,445 | 76,261 |
Residential real estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 7,727 | 5,908 | 8,237 |
Charge-offs | -3,153 | -1,814 | -3,828 |
Recoveries | 650 | 1,264 | 422 |
Provision for credit losses | -1,560 | 2,369 | 1,077 |
Ending Balance | 3,664 | 7,727 | 5,908 |
Ending balance: individually evaluated for impaired | 56 | 1,282 | 780 |
Ending balance: collectively evaluated for impaired | 3,608 | 6,445 | 5,128 |
Ending balance | 1,226,344 | 1,262,718 | 1,241,565 |
Ending balance: individually evaluated for impaired | 7,127 | 9,349 | 6,444 |
Ending balance: collectively evaluated for impaired | 1,219,217 | 1,253,369 | 1,235,121 |
Commercial real estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 11,778 | 22,441 | 18,961 |
Charge-offs | -1,148 | -10,513 | -851 |
Recoveries | 612 | 136 | 410 |
Provision for credit losses | 639 | -286 | 3,921 |
Ending Balance | 11,881 | 11,778 | 22,441 |
Ending balance: individually evaluated for impaired | 101 | 84 | 6,367 |
Ending balance: collectively evaluated for impaired | 11,780 | 11,694 | 16,074 |
Ending balance | 1,405,256 | 1,296,472 | 1,273,661 |
Ending balance: individually evaluated for impaired | 7,790 | 12,151 | 49,123 |
Ending balance: collectively evaluated for impaired | 1,397,466 | 1,284,321 | 1,224,538 |
Loans to individuals [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 5,457 | 4,132 | 4,244 |
Charge-offs | -3,964 | -3,679 | -3,482 |
Recoveries | 766 | 633 | 521 |
Provision for credit losses | 2,557 | 4,371 | 2,849 |
Ending Balance | 4,816 | 5,457 | 4,132 |
Ending balance: individually evaluated for impaired | 0 | 0 | 0 |
Ending balance: collectively evaluated for impaired | 4,816 | 5,457 | 4,132 |
Ending balance | 652,814 | 610,298 | 582,218 |
Ending balance: individually evaluated for impaired | 0 | 0 | 0 |
Ending balance: collectively evaluated for impaired | 652,814 | 610,298 | 582,218 |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 5,926 | 4,836 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision for credit losses | -5,926 | 1,090 | |
Ending Balance | 0 | 5,926 | |
Ending balance: individually evaluated for impaired | 0 | 0 | |
Ending balance: collectively evaluated for impaired | $0 | $5,926 |
Variable_Interest_Entities_Sch
Variable Interest Entities - Schedule of Maximum Potential Exposure (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Variable Interest Entities [Abstract] | ||
Low Income Housing Limited Partnership Investments | $61 | $207 |
Commitments_and_Letters_of_Cre2
Commitments and Letters of Credit - Notional Amount of Commitments and Letter of Credit Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments to extend credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument of credit risk | $1,635,948 | $1,571,987 |
Financial standby letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument of credit risk | 36,075 | 38,121 |
Performance standby letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument of credit risk | 25,915 | 32,441 |
Commercial letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument of credit risk | $2,611 | $0 |
Commitments_and_Letters_of_Cre3
Commitments and Letters of Credit - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Loss Contingencies [Line Items] | ||
Notional amount of financial standby letters of credit | $300,000 | |
Notional amount of performance standby letters of credit | 1,900,000 | |
Notional amount of commercial letters of credit | 232,000 | |
Financial instrument of credit risk | 200,000 | 100,000 |
Unused commitments and letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitment liability | $3,100,000 | $3,200,000 |
Premises_and_Equipment_Schedul
Premises and Equipment - Schedule of Premises and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 198,241 | $234,878 |
Less accumulated depreciation and amortization | 133,252 | 166,938 |
Total premises and equipment | 64,989 | 67,940 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 12,098 | 12,431 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 75,873 | 81,829 |
Buildings and improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Buildings and improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 50 years | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 14,229 | 14,354 |
Leasehold improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Leasehold improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 40 years | |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 59,034 | 80,131 |
Furniture and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Furniture and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 37,007 | $46,133 |
Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 7 years |
Premises_and_Equipment_Additio
Premises and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Amount paid under sale-leaseback arrangement | $321,000 | ||
Gain on sale of branch | 297,000 | ||
Sale-leaseback transaction | 15 year | ||
Total lease expense | 2,900,000 | 4,200,000 | 4,300,000 |
Premises and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation included in noninterest expense | 13,200,000 | 10,400,000 | 7,900,000 |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property Plant and Equipment, Gross, Amount Subject to Reduction in Estimated Useful Life | 14,000,000 | ||
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property Plant and Equipment, Gross, Amount Subject to Reduction in Estimated Useful Life | $700,000 | ||
Previously Reported [Member] | Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 6 years | ||
Previously Reported [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 5 years | ||
After System Conversion in 2014 [Member] | Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 3 years | ||
After System Conversion in 2014 [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 4 years |
Premises_and_Equipment_Schedul1
Premises and Equipment - Schedule of Future Minimum Rentals (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Premises [Member] | |
Operating Leased Assets [Line Items] | |
2014 | $3,257 |
2015 | 2,969 |
2016 | 2,758 |
2017 | 2,582 |
2018 | 2,330 |
Therafter | 12,276 |
Total | 26,172 |
Equipment [Member] | |
Operating Leased Assets [Line Items] | |
2014 | 56 |
2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
Therafter | 0 |
Total | $56 |
Goodwill_and_Other_Amortizing_2
Goodwill and Other Amortizing Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill And Other Intangibles [Line Items] | |||
Goodwill | $161,429,000 | $159,956,000 | |
Impairment charges on goodwill | 0 | ||
Amortization of other intangible assets | $631,000 | $1,064,000 | $1,467,000 |
Core Deposits Intangibles [Member] | |||
Goodwill And Other Intangibles [Line Items] | |||
Core deposits remaining amortization period | 4 years 10 months 24 days | ||
Core deposits weighted average amortization period | 3 years | ||
Customer Lists [Member] | |||
Goodwill And Other Intangibles [Line Items] | |||
Core deposits weighted average amortization period | 14 years 9 months |
Goodwill_and_Other_Amortizing_3
Goodwill and Other Amortizing Intangible Assets - Summarized Other Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $23,454 | $22,470 |
Accumulated Amortization | -21,789 | -21,159 |
Net Intangible Assets | 1,665 | 1,311 |
Customer Deposit Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 22,470 | 22,470 |
Accumulated Amortization | -21,773 | -21,159 |
Net Intangible Assets | 697 | 1,311 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 984 | 0 |
Accumulated Amortization | -16 | 0 |
Net Intangible Assets | $968 | $0 |
Goodwill_and_Other_Amortizing_4
Goodwill and Other Amortizing Intangible Assets - Estimated Amortization Expense of Core Deposit Intangibles (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill And Other Intangibles [Line Items] | ||
2014 | $598 | |
2015 | 345 | |
2016 | 193 | |
2017 | 161 | |
2018 | 134 | |
Thereafter | 234 | |
Net Intangible Assets | 1,665 | 1,311 |
Customer Lists [Member] | ||
Goodwill And Other Intangibles [Line Items] | ||
2014 | 260 | |
2015 | 168 | |
2016 | 130 | |
2017 | 99 | |
2018 | 77 | |
Thereafter | 234 | |
Net Intangible Assets | 968 | 0 |
Core Deposits Intangibles [Member] | ||
Goodwill And Other Intangibles [Line Items] | ||
2014 | 338 | |
2015 | 177 | |
2016 | 63 | |
2017 | 62 | |
2018 | 57 | |
Thereafter | 0 | |
Net Intangible Assets | $697 |
InterestBearing_Deposits_Compo
Interest-Bearing Deposits - Components of Interest-Bearing Deposits (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ||
Interest-bearing demand deposits | $81,851 | $89,149 |
Savings deposits | 2,402,288 | 2,506,631 |
Time deposits | 842,345 | 1,095,722 |
Total interest-bearing deposits | $3,326,484 | $3,691,502 |
InterestBearing_Deposits_Addit
Interest-Bearing Deposits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deposits [Abstract] | |||
Interest-bearing demand deposit, money market | $427.70 | $556.70 | |
Certificates of deposit in denominations of $100 thousand or more | 334 | 464.7 | |
Interest expense related to certificates of deposit $100 thousand or greater | $3.70 | $4.70 | $5.30 |
InterestBearing_Deposits_Sched
Interest-Bearing Deposits - Scheduled Maturities of Time Deposits (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Bearing Time Deposits In Banks And Securities [Line Items] | ||
Total | $842,345 | $1,095,722 |
Certificates of deposit [Member] | ||
Interest Bearing Time Deposits In Banks And Securities [Line Items] | ||
2014 | 586,928 | |
2015 | 130,777 | |
2016 | 42,772 | |
2017 | 25,446 | |
2018 | 56,422 | |
Total | $842,345 |
Shortterm_Borrowings_Summary_o
Short-term Borrowings - Summary of Short-Term Borrowings (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Debt [Line Items] | |||
Short-term Debt | $1,105,876 | $626,615 | $356,227 |
Average Balance | 815,393 | 478,388 | 402,196 |
Average Rate | 0.30% | 0.26% | 0.27% |
Federal funds purchased [Member] | |||
Short-term Debt [Line Items] | |||
Short-term Debt | 9,000 | 16,000 | 34,000 |
Average Balance | 11,691 | 11,982 | 47,727 |
Average Rate | 0.36% | 0.36% | 0.27% |
Borrowings from FHLB [Member] | |||
Short-term Debt [Line Items] | |||
Short-term Debt | 945,000 | 478,100 | 178,100 |
Average Balance | 644,651 | 335,449 | 214,703 |
Average Rate | 0.31% | 0.27% | 0.25% |
Securities sold under agreements to repurchase [Member] | |||
Short-term Debt [Line Items] | |||
Short-term Debt | 151,876 | 132,515 | 144,127 |
Average Balance | 159,051 | 130,957 | 139,766 |
Average Rate | 0.24% | 0.25% | 0.28% |
Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $1,105,876 | $626,615 | $486,144 |
Weighted Average [Member] | |||
Short-term Debt [Line Items] | |||
Average Rate | 0.30% | 0.27% | 0.25% |
Shortterm_Borrowings_Interest_
Short-term Borrowings - Interest Expense on Short-Term Borrowings (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest On Short Term Borrowings [Line Items] | |||
Total interest on short-term borrowings | $2,449 | $1,262 | $1,070 |
Federal funds purchased [Member] | |||
Interest On Short Term Borrowings [Line Items] | |||
Total interest on short-term borrowings | 42 | 43 | 128 |
Borrowings from FHLB [Member] | |||
Interest On Short Term Borrowings [Line Items] | |||
Total interest on short-term borrowings | 2,019 | 893 | 545 |
Securities sold under agreements to repurchase [Member] | |||
Interest On Short Term Borrowings [Line Items] | |||
Total interest on short-term borrowings | $388 | $326 | $397 |
Subordinated_Debentures_Subord
Subordinated Debentures - Subordinated Debentures Outstanding (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Apr. 02, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Subordinated Borrowing [Line Items] | |||
Subordinated Debentures outstanding, Amount | $72,167 | 72,167 | |
First Commonwealth Capital Trust I [Member] | |||
Subordinated Borrowing [Line Items] | |||
Fixed interest rate | 9.50% | ||
First Commonwealth Capital Trust II [Member] | |||
Subordinated Borrowing [Line Items] | |||
Subordinated Debentures outstanding, Due | 1-Jan-34 | ||
Subordinated Debentures outstanding, Amount | 30,929 | 30,929 | |
First Commonwealth Capital Trust III [Member] | |||
Subordinated Borrowing [Line Items] | |||
Subordinated Debentures outstanding, Due | 1-Jan-34 | ||
Subordinated Debentures outstanding, Amount | $41,238 | 41,238 | |
Subordinated Debt [Member] | LIBOR [Member] | First Commonwealth Capital Trust II [Member] | |||
Subordinated Borrowing [Line Items] | |||
Variable interest rate | 2.85% | 2.85% | |
Subordinated Debt [Member] | LIBOR [Member] | First Commonwealth Capital Trust III [Member] | |||
Subordinated Borrowing [Line Items] | |||
Variable interest rate | 2.85% | 2.85% |
Subordinated_Debentures_Additi
Subordinated Debentures - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Apr. 02, 2013 | Dec. 31, 2013 | |
First Commonwealth Capital Trust [Member] | |||
Subordinated Borrowing [Line Items] | |||
Percentage of common equity owned by First Commonwealth | 100.00% | ||
First Commonwealth Capital Trust III [Member] | |||
Subordinated Borrowing [Line Items] | |||
Redemption price as percentage of principal amount | 100.00% | ||
Deferred finance costs | $630,000 | ||
First Commonwealth Capital Trust II [Member] | |||
Subordinated Borrowing [Line Items] | |||
Redemption price as percentage of principal amount | 100.00% | ||
Deferred finance costs | 471,000 | ||
First Commonwealth Capital Trust I [Member] | |||
Subordinated Borrowing [Line Items] | |||
Deferred issuance costs | 500,000 | ||
Debentures authorized for redemption percentage | 100.00% | ||
Redemption price as percentage of principal amount | 103.33% | ||
Deferred finance costs | 996,000 | ||
Redemption Premium | $1,100,000 | ||
Fixed interest rate | 9.50% | ||
LIBOR [Member] | Subordinated Debt [Member] | First Commonwealth Capital Trust III [Member] | |||
Subordinated Borrowing [Line Items] | |||
Variable interest rate | 2.85% | 2.85% | |
LIBOR [Member] | Subordinated Debt [Member] | First Commonwealth Capital Trust II [Member] | |||
Subordinated Borrowing [Line Items] | |||
Variable interest rate | 2.85% | 2.85% |
Other_Longterm_Debt_Summary_of
Other Long-term Debt - Summary of Other Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt | $89,459 | $144,385 |
Borrowings from FHLB [Member] | ||
Debt Instrument [Line Items] | ||
2013, Weighted Average Contractual Rate | 1.13% | |
2013, Weighted Average Effective Rate | 1.13% | |
2013, Amount | 57,892 | |
2014, Weighted Average Contractual Rate | 0.82% | 0.82% |
2015, Weighted Average Contractual Rate | 3.82% | 4.64% |
2016, Weighted Average Contractual Rate | 3.83% | 4.64% |
2017, Weighted Average Contractual Rate | 3.83% | 4.64% |
2018, Weighted Average Contractual Rate | 3.84% | |
Thereafter, Weighted Average Contractual Rate | 4.66% | |
Thereafter, Weighted Average Contractual Rate | 3.81% | |
2014, Weighted Average Effective Rate | 0.82% | 0.82% |
2015, Weighted Average Effective Rate | 3.82% | 4.64% |
2016, Weighted Average Effective Rate | 3.83% | 4.64% |
2017, Weighted Average Effective Rate | 3.83% | 4.64% |
2018, Weighted Average Effective Rate | 3.84% | |
Thereafter, Weighted Average Effective Rate | 4.66% | |
Thereafter, Weighted Average Effective Rate | 3.81% | |
2014, Amount | 80,142 | 79,971 |
2015, Amount | 563 | 389 |
2016, Amount | 585 | 407 |
2017, Amount | 607 | 426 |
2018, Amount | 631 | |
Thereafter, Amount | 5,300 | |
Thereafter, Amount | $6,931 |
Other_Longterm_Debt_Summary_of1
Other Long-term Debt - Summary of Scheduled Loan Payments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
Total, Amount | $89,459 | $144,385 |
Fair_Values_of_Assets_and_Liab2
Fair Values of Assets and Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Random sample percentage of securities for each quarter | 100.00% | ||
Credit loss recognized | $0 | $0 | $0 |
Total gains or losses included in earnings | -77,000 | 770,000 | |
Interest rate swaps transferred into Level 3 from Level 2 | 3,035,000 | 20,135,000 | |
Corporate securities transferred from Level 3 to Level 2 | 0 | 0 | |
Impaired loans considered to be credit risk of non-collection | 100,000 | ||
Updated appraisal requirement floor | 250,000 | ||
Other real estate owned | 7,197,000 | 11,728,000 | |
Financial instrument of credit risk | 200,000 | 100,000 | |
Provision for credit losses | 11,196,000 | 19,227,000 | 20,544,000 |
Interest rate swap [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Provision for credit losses | 900,000 | ||
Loans Held for Sale [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Total gains or losses included in earnings | -77,000 | -625,000 | |
Interest rate swaps transferred into Level 3 from Level 2 | 3,035,000 | 20,135,000 | |
Corporate securities transferred from Level 3 to Level 2 | 0 | 0 | |
Other Assets [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Total gains or losses included in earnings | 0 | 0 | |
Interest rate swaps transferred into Level 3 from Level 2 | 0 | 0 | |
Corporate securities transferred from Level 3 to Level 2 | $0 | $0 |
Fair_Values_of_Assets_and_Liab3
Fair Values of Assets and Liabilities - Quantitative Inputs and Assumptions Used in Level 3 Fair Value Measurements (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Assets | 11,186,000 | $14,358,000 | |
Estimated Fair Value of Available for Sale | 1,309,819,000 | 1,318,365,000 | |
Total Debt Securities | 1,308,399,000 | 1,316,945,000 | |
Fair Value | 1,368,052,000 | 1,368,167,000 | |
Probability of default [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average rate | 0.00% | ||
Probability of default [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average rate | 100.00% | ||
Probability of default [Member] | Weighted Average [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average rate | 17.16% | ||
Prepayment rates [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | PrepaymentB rates | ||
Prepayment rates [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average rate | 0.00% | ||
Prepayment rates [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average rate | 73.88% | ||
Prepayment rates [Member] | Weighted Average [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average rate | 6.13% | ||
Discount rates [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | DiscountB rates | ||
Gas per MCF [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | Gas per MCF | ||
Gas per MCF [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average | 3 | [1] | |
Gas per MCF [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average | 4.85 | [1] | |
Oil per BBL/d [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | Oil per BBL/d | ||
Oil per BBL/d [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average | 53.91 | [1] | |
Oil per BBL/d [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average | 71.01 | [1] | |
NGL per gallon [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | NGL per gallon | ||
NGL per gallon [Member] | Weighted Average [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average | 0.83 | ||
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Probability of default [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | ProbabilityB ofB default | ||
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discount rates [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average rate | 5.25% | [2] | |
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discount rates [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average rate | 14.00% | [2] | |
Pooled Trust Preferred Collateralized Debt Obligations [Member] | Discounted Cash Flow [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Valuation Technique | DiscountedB CashB Flow | ||
Other Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | |||
Other Investments [Member] | Par Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Valuation Technique | Par Value | ||
Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 4,116,000 | [3] | |
Impaired Loans [Member] | Weighted Average [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average rate | 10.00% | ||
Impaired Loans [Member] | Discount rates [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | Discount rate | ||
Impaired Loans [Member] | Reserve study [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Valuation Technique | Gas Reserve study | ||
Other Real Estate Owned [Member] | Counterparty credit risk [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | |||
Other Real Estate Owned [Member] | Internal Valuation [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Valuation Technique | Internal Valuation | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Assets | 0 | ||
Estimated Fair Value of Available for Sale | 30,419,000 | 24,943,000 | |
Total Debt Securities | 28,999,000 | 23,523,000 | |
Fair Value | 30,419,000 | 24,943,000 | |
Fair Value, Inputs, Level 3 [Member] | Interest rate swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Assets | 0 | ||
Equities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value of Available for Sale | 1,420,000 | 1,420,000 | |
Equities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value of Available for Sale | 1,420,000 | ||
Equities [Member] | Fair Value, Inputs, Level 3 [Member] | Other Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value of Available for Sale | 1,420,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned | 7,981,000 | 12,924,000 | |
Fair Value | 53,771,000 | 63,483,000 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned | 153,000 | 172,000 | |
Fair Value | 11,079,000 | $13,828,000 | |
[1] | unobservable inputs are defined as follows: MCFbmillion cubic feet; BBL/dbbarrels per day; NGLbnatural gas liquid. | ||
[2] | incorporates spread over the risk free rate related primarily to credit quality and illiquidity of securities. | ||
[3] | 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. |
Fair_Values_of_Assets_and_Liab4
Fair Values of Assets and Liabilities - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | $1,308,399 | $1,316,945 |
Estimated Fair Value of Available for Sale | 1,309,819 | 1,318,365 |
Other investments | 44,545 | 35,444 |
Loans Held for Sale | 2,502 | 0 |
Other Assets | 11,186 | 14,358 |
Total Assets | 1,368,052 | 1,368,167 |
Other Liabilities | 10,671 | 14,318 |
Total Liabilities | 10,671 | 14,318 |
Equities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value of Available for Sale | 1,420 | 1,420 |
US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 25,936 | 25,204 |
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 950,881 | 994,887 |
Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 74 | 105 |
Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 267,877 | 266,125 |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 27,377 | 80 |
Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 7,255 | 7,021 |
Pooled Trust Preferred Collateralized Debt Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 28,999 | 23,523 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Estimated Fair Value of Available for Sale | 0 | 0 |
Other investments | 0 | 0 |
Loans Held for Sale | 0 | 0 |
Other Assets | 0 | 0 |
Total Assets | 0 | 0 |
Other Liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 1 [Member] | Equities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value of Available for Sale | 0 | 0 |
Level 1 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 1 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 1 [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 1 [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 1 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 1,279,400 | 1,293,422 |
Estimated Fair Value of Available for Sale | 1,279,400 | 1,293,422 |
Other investments | 44,545 | 35,444 |
Loans Held for Sale | 2,502 | 0 |
Other Assets | 11,186 | 14,358 |
Total Assets | 1,337,633 | 1,343,224 |
Other Liabilities | 10,671 | 14,318 |
Total Liabilities | 10,671 | 14,318 |
Level 2 [Member] | Equities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value of Available for Sale | 0 | 0 |
Level 2 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 25,936 | 25,204 |
Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 950,881 | 994,887 |
Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 74 | 105 |
Level 2 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 267,877 | 266,125 |
Level 2 [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 27,377 | 80 |
Level 2 [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 7,255 | 7,021 |
Level 2 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 28,999 | 23,523 |
Estimated Fair Value of Available for Sale | 30,419 | 24,943 |
Other investments | 0 | 0 |
Loans Held for Sale | 0 | 0 |
Other Assets | 0 | |
Total Assets | 30,419 | 24,943 |
Other Liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 3 [Member] | Equities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value of Available for Sale | 1,420 | |
Level 3 [Member] | US Government Agencies Debt Securities [Member] | Mortgage-Backed Securities-Residential [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Residential [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Mortgage-Backed Securities-Commercial [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 3 [Member] | Obligations of U.S. Government-Sponsored Enterprises [Member] | Other Government - Sponsored Enterprises [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 3 [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 3 [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | 0 | 0 |
Level 3 [Member] | Pooled Trust Preferred Collateralized Debt Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt Securities | $28,999 | $23,523 |
Fair_Values_of_Assets_and_Liab5
Fair Values of Assets and Liabilities - Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of period | $24,943 | $24,793 |
Total gains or losses included in earnings | 77 | -770 |
Total gains or losses included in other comprehensive income | 7,162 | 12,338 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | -3,112 | -20,760 |
Settlements | -1,686 | -10,793 |
Transfers from Level 3 | 0 | 0 |
Transfers into Level 3 | 3,035 | 20,135 |
Balance, end of period | 30,419 | 24,943 |
Pooled Trust Preferred Collateralized Debt Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of period | 23,523 | 23,373 |
Total gains or losses included in earnings | 0 | -1,395 |
Total gains or losses included in other comprehensive income | 7,162 | 12,338 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | -1,686 | -10,793 |
Transfers from Level 3 | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Balance, end of period | 28,999 | 23,523 |
Equities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of period | 1,420 | 1,420 |
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 |
Transfers from Level 3 | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Balance, end of period | 1,420 | 1,420 |
Loans Held for Sale [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Total gains or losses included in earnings | 77 | 625 |
Total gains or losses included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | -3,112 | -20,760 |
Settlements | 0 | 0 |
Transfers from Level 3 | 0 | 0 |
Transfers into Level 3 | 3,035 | 20,135 |
Balance, end of period | 0 | 0 |
Other Assets [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of period | 0 | 0 |
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 |
Transfers from Level 3 | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Balance, end of period | $0 | $0 |
Fair_Values_of_Assets_and_Liab6
Fair Values of Assets and Liabilities - Schedule of Assets Measured on Nonrecurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $1,368,052 | $1,368,167 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 45,790 | 50,559 |
Other real estate owned | 7,981 | 12,924 |
Total Assets | 53,771 | 63,483 |
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 | 1,337,633 | 1,343,224 |
Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 34,864 | 36,903 |
Other real estate owned | 7,828 | 12,752 |
Total Assets | 42,692 | 49,655 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 30,419 | 24,943 |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 10,926 | 13,656 |
Other real estate owned | 153 | 172 |
Total Assets | 11,079 | 13,828 |
Total Gains (Losses) [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | -7,017 | -13,681 |
Other real estate owned | -1,319 | -198 |
Total Assets | ($8,336) | ($13,879) |
Fair_Values_of_Assets_and_Liab7
Fair Values of Assets and Liabilities - Carrying Amounts and Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Cash and due from banks | $72,276,000 | $74,427,000 | |
Interest-bearing deposits | 2,262,000 | 3,012,000 | |
Securities available for sale | 1,309,819,000 | 1,318,365,000 | |
Other investments | 44,545,000 | 35,444,000 | |
Loans held for sale | 2,502,000 | 0 | |
Loans | 4,457,308,000 | 4,283,833,000 | 4,204,704,000 |
Deposits | 4,315,511,000 | 4,603,863,000 | |
Short-term borrowings | 1,105,876,000 | 626,615,000 | 356,227,000 |
Long-term debt | 89,459,000 | 144,385,000 | |
Subordinated debt | 72,167,000 | 72,167,000 | |
Level 1 [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Securities available for sale | 0 | 0 | |
Other investments | 0 | 0 | |
Level 2 [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Securities available for sale | 1,279,400,000 | 1,293,422,000 | |
Other investments | 44,545,000 | 35,444,000 | |
Level 3 [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Securities available for sale | 30,419,000 | 24,943,000 | |
Other investments | 0 | 0 | |
Carrying Amount [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Cash and due from banks | 72,276,000 | 74,427,000 | |
Interest-bearing deposits | 2,262,000 | 3,012,000 | |
Securities available for sale | 1,309,819,000 | 1,318,365,000 | |
Other investments | 44,545,000 | 35,444,000 | |
Loans held for sale | 2,502,000 | ||
Loans | 4,457,308,000 | 4,283,833,000 | |
Deposits | 4,315,511,000 | 4,603,863,000 | |
Short-term borrowings | 1,105,876,000 | 626,615,000 | |
Long-term debt | 89,459,000 | 144,385,000 | |
Subordinated debt | 72,167,000 | 72,167,000 | |
Estimated Fair Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Cash and due from banks | 72,276,000 | 74,427,000 | |
Interest-bearing deposits | 2,262,000 | 3,012,000 | |
Securities available for sale | 1,309,819,000 | 1,318,365,000 | |
Other investments | 44,545,000 | 35,444,000 | |
Loans held for sale | 2,502,000 | ||
Loans | 4,439,766,000 | 4,321,847,000 | |
Deposits | 4,319,997,000 | 4,531,685,000 | |
Short-term borrowings | 1,105,867,000 | 626,603,000 | |
Long-term debt | 90,319,000 | 145,477,000 | |
Subordinated debt | 62,815,000 | 51,706,000 | |
Estimated Fair Value [Member] | Level 1 [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Cash and due from banks | 72,276,000 | 74,427,000 | |
Interest-bearing deposits | 2,262,000 | 3,012,000 | |
Securities available for sale | 0 | 0 | |
Other investments | 0 | 0 | |
Loans held for sale | 0 | ||
Loans | 0 | 0 | |
Deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Long-term debt | 0 | 0 | |
Subordinated debt | 0 | 0 | |
Estimated Fair Value [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 | 1,279,400,000 | 1,293,422,000 | |
Other investments | 44,545,000 | 35,444,000 | |
Loans held for sale | 2,502,000 | ||
Loans | 34,864,000 | 36,903,000 | |
Deposits | 4,319,997,000 | 4,531,685,000 | |
Short-term borrowings | 1,105,867,000 | 626,603,000 | |
Long-term debt | 90,319,000 | 145,477,000 | |
Subordinated debt | 0 | 0 | |
Estimated Fair Value [Member] | Level 3 [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits | 0 | 0 | |
Securities available for sale | 30,419,000 | 24,943,000 | |
Other investments | 0 | 0 | |
Loans held for sale | 0 | ||
Loans | 4,404,902,000 | 4,284,944,000 | |
Deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Long-term debt | 0 | 0 | |
Subordinated debt | $62,815,000 | $51,706,000 |
Income_Taxes_Schedule_of_Compo
Income Taxes - Schedule of Components of Income Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal | $12,661 | $2,509 | $12,035 |
State | 157 | 68 | 72 |
Total current tax provision | 12,818 | 2,577 | 12,107 |
Deferred tax provision (benefit) | 4,862 | 12,704 | 2,551 |
Total tax provision (benefit), Amount | $17,680 | $15,281 | $14,658 |
Income_Taxes_Schedule_of_Effec
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Tax at statutory rate, Amount | $21,747 | $19,867 | $19,814 |
Income Tax Reconciliation, Bank Owned Life Insurance Income | -1,926 | -1,939 | -2,048 |
Tax-exempt interest income, net, Amount | -2,133 | -2,600 | -2,789 |
Tax credits, Amount | -134 | -144 | -267 |
Other, Amount | 126 | 97 | -52 |
Total tax provision (benefit), Amount | $17,680 | $15,281 | $14,658 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Tax at statutory rate, Pretax Income | 35.00% | 35.00% | 35.00% |
Income from bank owned life insurance, Pretax Income | -3.00% | -3.00% | -4.00% |
Tax-exempt interest income, net, Pretax Income | -4.00% | -5.00% | -5.00% |
Tax credits, Pretax Income | 0.00% | 0.00% | 0.00% |
Other, Pretax Income | 0.00% | 0.00% | 0.00% |
Total tax provision (benefit), Pretax Income | 28.00% | 27.00% | 26.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Annual effective income tax rate, percentage | 28.00% | 27.00% | 26.00% |
Net deferred tax asset | $49,654,000 | $63,178,000 | |
Alternative minimum tax credit carryforward | 8,627,000 | 13,896,000 | |
Deferred tax asset for other-than-temporary impairment of securities | 9,239,000 | 9,693,000 | |
Capital losses | $400,000 |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets, Gross [Abstract] | ||
Allowance for credit losses | $18,218 | $18,979 |
Postretirement benefits other than pensions | 679 | 726 |
Alternative minimum tax credit carryforward | 8,627 | 13,896 |
Deferred Tax Assets, Litigation Reserve | 3,000 | 0 |
Unrealized loss on securities available for sale | 2,463 | 11,235 |
Writedown of other real estate owned | 603 | 207 |
Deferred compensation | 2,246 | 2,118 |
Accrued interest on nonaccrual loans | 1,059 | 1,481 |
Other-than-temporary impairment of securities | 9,239 | 9,693 |
Depreciation of assets | 1,127 | 1,546 |
Accrued incentives | 1,594 | 1,153 |
Unfunded loan commitment allowance | 1,078 | 1,106 |
Deferred rent | 969 | 653 |
Other | 1,354 | 2,462 |
Total deferred tax assets | 52,256 | 65,255 |
Deferred tax liabilities: | ||
Basis difference in assets acquired | -344 | -518 |
Loan origination fees and costs | -1,337 | -637 |
Income from unconsolidated subsidiary | -603 | -590 |
Other | -318 | -332 |
Total deferred tax liabilities | -2,602 | -2,077 |
Net deferred tax asset | $49,654 | $63,178 |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employer contribution | 6.00% | ||
Employee contribution | 80.00% | ||
Plan expense | $2,600,000 | $2,600,000 | $2,600,000 |
Retirement Plan expense | 0 | 0 | |
Minimum [Member] | |||
Total annual compensation for a calendar year for non-qualified deferred compensation plan | $110,000 | ||
Eligibility of participants | 1.00% | ||
Maximum [Member] | |||
Eligibility of participants | 25.00% |
Retirement_Plans_Schedule_of_C
Retirement Plans - Schedule of Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $0 | $0 | $0 |
Interest cost on projected benefit obligation | 62 | 62 | 75 |
Amortization of transition obligation | 0 | 0 | 2 |
Gain amortization | -29 | -7 | -32 |
Net periodic benefit cost | $33 | $55 | $45 |
Retirement_Plans_Schedule_of_C1
Retirement Plans - Schedule of Changes in Benefit Obligations and Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | $0 | $0 | $0 |
Interest cost | 62 | 62 | 75 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Funded Status at End of Year | 1,822 | 1,644 | |
Unrecognized transition obligation | 0 | 0 | |
Unrecognized net gain | 117 | 430 | |
Amounts recognized in retained earnings | 1,939 | 2,074 | |
Change in Benefit Obligation [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 1,644 | 1,986 | |
Service cost | 0 | 0 | |
Interest cost | 62 | 62 | |
Amendments | 0 | 0 | |
Actuarial gain | 284 | -225 | |
Net benefits paid | -168 | -179 | |
Benefit obligation at end of year | 1,822 | 1,644 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Net benefits paid | -168 | -179 | |
Change in Plan Assets [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Net benefits paid | -168 | -179 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 168 | 179 | |
Net benefits paid | -168 | -179 | |
Fair value of plan assets at end of year | $0 | $0 |
Retirement_Plans_Schedule_of_A
Retirement Plans - Schedule of Amounts Recognized as Other Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ||
Amounts Recognized in the Statement of Financial Condition as Other liabilities | $1,822 | $1,644 |
Retirement_Plans_Schedule_of_A1
Retirement Plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net (gain) loss | ($76) | ($280) | ($138) |
Transition obligation | 0 | 0 | 0 |
Total | -76 | -280 | -138 |
Postretirement Benefit Costs [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net (gain) loss | -4 | ||
Transition obligation | 0 | ||
Total | ($4) |
Retirement_Plans_Schedule_of_W
Retirement Plans - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligation (Detail) (Benefit obligation [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Benefit obligation [Member] | |||
Net Periodic Benefit Cost Assumptions [Line Items] | |||
Discount rate | 3.61% | 4.01% | 3.31% |
Health care cost trend: Initial | 6.50% | 6.75% | 7.00% |
Health care cost trend: Ultimate | 4.75% | 4.75% | 4.75% |
Year ultimate reached | 2022 | 2022 | 2022 |
Retirement_Plans_Schedule_of_W1
Retirement Plans - Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Cost (Detail) (Net Periodic Cost [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net Periodic Cost [Member] | |||
Net Periodic Benefit Cost Assumptions [Line Items] | |||
Discount rate | 4.01% | 3.31% | 4.22% |
Health care cost trend: Initial | 6.75% | 7.00% | 8.00% |
Health care cost trend: Ultimate | 4.75% | 4.75% | 4.75% |
Year ultimate reached | 2022 | 2022 | 2016 |
Corridor | 10.00% | 10.00% | 10.00% |
Recognition period for gains and losses | 10 years | 11 years | 12 years |
Retirement_Plans_Schedule_of_I
Retirement Plans - Schedule of Impact of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
Effect on total of service and interest cost components, One-Percentage-Point Increase | $74 |
Effect on postretirement benefit obligation, One-Percentage-Point Increase | 2 |
Effect on total of service and interest cost components, One-Percentage-Point Decrease | -67 |
Effect on postretirement benefit obligation, One-Percentage-Point Decrease | ($2) |
Retirement_Plans_Schedule_of_P
Retirement Plans - Schedule of Projected Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2014 | $197 |
2015 | 192 |
2016 | 187 |
2017 | 172 |
2018 | 145 |
2019 - 2023 | $623 |
Unearned_ESOP_Shares_Additiona
Unearned ESOP Shares - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Borrowed funds | $1,600,000 | |
ESOP [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Compensation costs | $733,000 |
Unearned_ESOP_Shares_Analysis_
Unearned ESOP Shares - Analysis of ESOP Shares Held in Suspense and Its Fair Value (Detail) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Rollforward] | |
Shares in suspense, beginning of the year | 104,661 |
Shares allocated | -104,661 |
Shares acquired | 0 |
Shares in suspense, end of the year | 0 |
Fair market value of shares in suspense | $0 |
Unearned_ESOP_Shares_Interest_
Unearned ESOP Shares - Interest Paid on ESOP Loan and Dividends Received on Unallocated Shares (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Interest paid on ESOP loan | $18,943 | $23,022 | $31,597 |
Dividends on unallocated shares | 19 | ||
ESOP [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Interest paid on ESOP loan | $13 |
Incentive_Compensation_Plan_Ad
Incentive Compensation Plan - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||
Jan. 28, 2013 | Feb. 24, 2012 | Jan. 17, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 16, 2013 | 31-May-13 | Mar. 01, 2013 | Jan. 02, 2012 | Apr. 01, 2011 | Nov. 21, 2011 | Jan. 22, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Maximum number of shares that are available to be awarded | 5,000,000 | ||||||||||||
Fair value of restricted stock | $9.03 | $7.25 | $5.65 | ||||||||||
Options granted under plan | $4,500,000 | ||||||||||||
Vesting period of restricted stock | 1 year | 1 year | 1 year | 10 years | |||||||||
Intrinsic value of stock options exercised | 1.41 | ||||||||||||
Options exercised | 0 | 0 | 130,672 | ||||||||||
Granted, Shares | 0 | 0 | 0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,169,742 | ||||||||||||
Restricted Stock [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Allocated Share-based Compensation Expense | 1,000,000 | ||||||||||||
Fair value of restricted stock | $9.22 | ||||||||||||
Compensation expense | 500,000 | 400,000 | |||||||||||
Unrecognized compensation cost related to unvested restricted stock | $2,300,000 | ||||||||||||
Executive [Member] | Restricted Stock [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common stock issued to executive | 128,611,000 | 68,000,000 | 54,166,000 | 3,000 | 45,000 | 10,000 | 100,000 | 25,000 | 10,000 | 30,120 | |||
Fair value of restricted stock | $7.57 | $7.21 | $7.35 | $5.26 | $6.82 | $4.41 | $5.70 | ||||||
Expiration of compensation plan | 16-Aug-16 | 31-May-16 | 1-Mar-16 | 1-Jan-16 | 1-Apr-16 | 21-Nov-14 | 22-Jan-12 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 1 | 3 | 1 | 4 | 1 | 1 | 2 | ||||||
Executive [Member] | Restricted Stock [Member] | Annual Incentive Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common stock issued to executive | 90,000 | ||||||||||||
Fair value of restricted stock | 5.96 | ||||||||||||
Expiration of compensation plan | 24-Feb-15 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 1 | ||||||||||||
Executive [Member] | Restricted Stock [Member] | Long Term Incentive Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common stock issued to executive | 34,000 | ||||||||||||
Fair value of restricted stock | 5.96 | ||||||||||||
Expiration of compensation plan | 31-Dec-14 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 1 |
Incentive_Compensation_Plan_Un
Incentive Compensation Plan - Unvested Service-Based Restricted Stock Awards (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of the year, Shares | 271,000 | 253,000 | 50,060 |
Granted, Shares | 94,626 | 58,000 | 224,000 |
Vested, Shares | -98,487 | -35,000 | -17,060 |
Forfeited, Shares | -2,139 | -5,000 | -4,000 |
Outstanding, end of the year, Shares | 265,000 | 271,000 | 253,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding, beginning of the year, Weighted Average Grant Date Fair Value | $6.07 | $5.71 | $6 |
Granted, Weighted Average Grant Date Fair Value | $9.03 | $7.25 | $5.65 |
Vested, Weighted Average Grant Date Fair Value | $6.18 | $5.46 | $5.73 |
Forfeited, Weighted Average Grant Date Fair Value | $5.96 | $5.96 | $5.96 |
Outstanding, end of the year, Weighted Average Grant Date Fair Value | $7.08 | $6.07 | $5.71 |
Incentive_Compensation_Plan_In
Incentive Compensation Plan Incentive Compensation Plan - Restricted Stock Awards Estimated to be Granted on a Performance Award (Details) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Jan. 28, 2013 | Feb. 24, 2012 | Jan. 17, 2011 | Dec. 31, 2014 | Aug. 16, 2013 | 31-May-13 | Mar. 01, 2013 | Jan. 02, 2012 | Apr. 01, 2011 | Nov. 21, 2011 | Jan. 22, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Percentage Of Target Award Participants Earn | 40.00% | 40.00% | 40.00% | ||||||||
Performance Shares Awards As Percentage Of Target | 100.00% | 100.00% | 100.00% | ||||||||
Percentage Of Target Award Opportunities Maximum In Certain Cases | 200.00% | 200.00% | 200.00% | ||||||||
Vesting period of restricted stock | 1 year | 1 year | 1 year | 10 years | |||||||
Performance Based Stock Awards Vesting Period | 3 years | 3 years | 3 years | ||||||||
Restricted Stock [Member] | Executive [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock issued to executive | 128,611,000 | 68,000,000 | 54,166,000 | 3,000 | 45,000 | 10,000 | 100,000 | 25,000 | 10,000 | 30,120 | |
Restricted Stock [Member] | Executive [Member] | Long Term Incentive Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock issued to executive | 34,000 |
Incentive_Compensation_Plan_Un1
Incentive Compensation Plan - Unvested Target Award (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of the year, Shares | 271,000 | 253,000 | 50,060 |
Granted, Shares | 94,626 | 58,000 | 224,000 |
Vested, Shares | 98,487 | 35,000 | 17,060 |
Forfeited, Shares | -2,139 | -5,000 | -4,000 |
Outstanding, end of the year, Shares | 265,000 | 271,000 | 253,000 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of the year, Shares | 250,777 | 151,333 | 93,333 |
Granted, Shares | 126,389 | 138,611 | 74,000 |
Vested, Shares | -12,626 | 0 | 0 |
Forfeited, Shares | -80,540 | -39,167 | -16,000 |
Outstanding, end of the year, Shares | 284,000 | 250,777 | 151,333 |
Incentive_Compensation_Plan_Ou
Incentive Compensation Plan - Outstanding Stock Options (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of the year, Shares | 27,000 | 196,322 | 496,863 |
Granted, Shares | 0 | 0 | 0 |
Exercised, Shares | 0 | 0 | -130,672 |
Forfeited, Shares | -12,000 | -169,322 | -169,869 |
Balance, end of the year, Shares | 15,000 | 27,000 | 196,322 |
Exercisable at the end of the year, Shares | 15,000 | 27,000 | 196,322 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, beginning of the year, Weighted Average Exercise Price | $14.49 | $11.64 | $10.03 |
Granted, Weighted Average Exercise Price | $0 | $0 | $0 |
Exercised, Weighted Average Exercise Price | $0 | $0 | $6.76 |
Forfeited, Weighted Average Exercise Price | $14.41 | $11.19 | $10.68 |
Balance, end of the year, Weighted Average Exercise Price | $14.55 | $14.49 | $11.64 |
Exercisable at the end of the year, Weighted Average Exercise Price | $14.55 | $14.49 | $11.64 |
Incentive_Compensation_Plan_Co
Incentive Compensation Plan - Components of Stock Options Outstanding (Detail) ($14.41 - $14.55 [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
$14.41 - $14.55 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 15,000 |
Weighted Average Remaining Contract Life | 0 years |
Weighted Average Exercise Price | $14.55 |
Number Exercisable | 15,000 |
Weighted Average Exercise Price | $14.55 |
Contingent_Liabilities_Additio
Contingent Liabilities - Additional Information (Detail) (Pending Litigation [Member]) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Dec. 31, 2014 | |
complaint | ||
Loss Contingencies [Line Items] | ||
Number of new complaints | 3 | |
Number of former members of McGrogan class | 34 | |
McGrogan Class Action [Member] | Ira Market Rate For Savings Account [Member] | ||
Loss Contingencies [Line Items] | ||
Interest rate on deposits | 3.50% | |
McGrogan Class Action [Member] | Minimum [Member] | Ira Market Rate For Savings Account [Member] | ||
Loss Contingencies [Line Items] | ||
Interest rate on deposits | 8.00% |
Related_Party_Transactions_Loa
Related Party Transactions - Loans to Related Parties (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Loans and Leases Receivable, Related Parties [Roll Forward] | |
Beginning balance | $683 |
Advances | 297 |
Repayments | -258 |
Other | 0 |
Ending balance | $722 |
Regulatory_Restrictions_and_Ca2
Regulatory Restrictions and Capital Adequacy - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Regulatory Capital Requirements [Abstract] | |||
Cash Dividends Declared per Common Share (in dollars per share) | $0.28 | $0.23 | $0.18 |
Regulatory_Restrictions_and_Ca3
Regulatory Restrictions and Capital Adequacy - Schedule of Capital Amount and Ratio Considered to be Capitalized (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Well Capitalized Regulatory Guidelines [Member] | First Commonwealth Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to Risk Weighted Assets, Well Capitalized Regulatory Guidelines | $519,021 | $495,344 |
Tier I Capital to Risk Weighted Assets, Well Capitalized Regulatory Guidelines, Capital Amount | 311,413 | 297,206 |
Tier I Capital to Average Assets, Well Capitalized Regulatory Guidelines, Capital Amount | 306,595 | 297,491 |
Total Capital to Risk Weighted Assets, Well Capitalized Regulatory Guidelines | 10.00% | 10.00% |
Tier I Capital to Risk Weighted Assets, Well Capitalized Regulatory Guidelines Ratio | 6.00% | 6.00% |
Tier I Capital to Average Assets, Well Capitalized Regulatory Guidelines Ratio | 5.00% | 5.00% |
Regulatory Minimum [Member] | First Commonwealth Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount | 415,217 | 396,275 |
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount | 207,608 | 198,138 |
Tier I Capital to Average Assets, Regulatory Minimum Capital Amount | 245,276 | 237,993 |
Total Capital to Risk Weighted Assets, Regulatory Minimum Ratio | 8.00% | 8.00% |
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Ratio | 4.00% | 4.00% |
Tier I Capital to Average Assets, Regulatory Minimum Ratio | 4.00% | 4.00% |
Regulatory Minimum [Member] | First Commonwealth Financial Corporation [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount | 414,460 | 396,009 |
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Capital Amount | 207,230 | 198,004 |
Tier I Capital to Average Assets, Regulatory Minimum Capital Amount | 246,738 | 239,430 |
Total Capital to Risk Weighted Assets, Regulatory Minimum Ratio | 8.00% | 8.00% |
Tier I Capital to Risk Weighted Assets, Regulatory Minimum Ratio | 4.00% | 4.00% |
Tier I Capital to Average Assets, Regulatory Minimum Ratio | 4.00% | 4.00% |
Actual [Member] | First Commonwealth Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to Risk Weighted Assets | 647,500 | 637,415 |
Tier I Capital to Risk Weighted Assets | 592,369 | 580,031 |
Tier I Capital to Average Assets | 592,369 | 580,031 |
Total Capital to Risk Weighted Assets, Ratio | 12.48% | 12.87% |
Tier I Capital to Risk Weighted Assets, Ratio | 11.41% | 11.71% |
Tier I Capital to Average Assets, Ratio | 9.66% | 9.75% |
Actual [Member] | First Commonwealth Financial Corporation [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to Risk Weighted Assets | 662,733 | 656,235 |
Tier I Capital to Risk Weighted Assets | 607,602 | 598,851 |
Tier I Capital to Average Assets | $607,602 | $598,851 |
Total Capital to Risk Weighted Assets, Ratio | 12.79% | 13.26% |
Tier I Capital to Risk Weighted Assets, Ratio | 11.73% | 12.10% |
Tier I Capital to Average Assets, Ratio | 9.85% | 10.00% |
Capital_Additional_Information
Capital - Additional Information (Detail) (USD $) | 12 Months Ended | 18 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 28, 2014 | Jan. 29, 2013 | Jun. 19, 2012 |
Equity, Class of Treasury Stock [Line Items] | |||||
Announcement of common stock repurchase program | $25 | $50 | |||
Number of shares authorized to be repurchased | 25,000,000 | ||||
Stock repurchased (in shares) | 13,734,185 | ||||
Average price per share | $7.31 |
Condensed_Financial_Informatio2
Condensed Financial Information of First Commonwealth Financial Corporation (Parent Company Only) - Statements of Financial Condition (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Loans | $4,405,257 | $4,229,608 | ||
Premises and equipment, net | 64,989 | 67,940 | ||
Other assets | 110,777 | 138,698 | ||
Total assets | 6,360,285 | 6,214,861 | ||
Liabilities and Shareholders' Equity | ||||
Subordinated debentures payable | 72,167 | 72,167 | ||
Shareholders' equity | 716,145 | 711,697 | 746,007 | 758,543 |
Total liabilities and shareholdersb equity | 6,360,285 | 6,214,861 | ||
Parent [Member] | ||||
Assets | ||||
Cash | 10,402 | 8,370 | ||
Loans | 24 | 27 | ||
Investment in subsidiaries | 712,610 | 696,438 | ||
Investment in unconsolidated subsidiary trusts | 2,182 | 2,182 | ||
Investment in Jointly-Owned Company | 8,749 | 8,559 | ||
Premises and equipment, net | 4,287 | 6,376 | ||
Recievable from subsidiaries | 0 | 267 | ||
Dividends receivable from subsidiaries | 0 | 1,319 | ||
Other assets | 50,988 | 62,633 | ||
Total assets | 789,242 | 786,171 | ||
Liabilities and Shareholders' Equity | ||||
Accrued expenses and other liabilities | 930 | 2,307 | ||
Subordinated debentures payable | 72,167 | 72,167 | ||
Shareholders' equity | 716,145 | 711,697 | ||
Total liabilities and shareholdersb equity | $789,242 | $786,171 |
Condensed_Financial_Informatio3
Condensed Financial Information of First Commonwealth Financial Corporation (Parent Company Only) - Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Interest and dividends | $202,181 | $206,358 | $219,075 |
Interest expense | -18,501 | -21,707 | -30,146 |
Other income | 7,445 | 12,060 | 14,365 |
Applicable income tax (provision) benefits | -17,680 | -15,281 | -14,658 |
Net Income | 44,453 | 41,482 | 41,954 |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest and dividends | 1 | 1 | 1 |
Dividends from subsidiaries | 49,207 | 65,140 | 64,342 |
Interest expense | -2,335 | -3,128 | -5,711 |
Other income | 1,251 | 2,653 | 12,581 |
Operating expense | -6,766 | -8,820 | -19,061 |
Income (loss) before taxes and equity in undistributed earnings of subsidiaries | 41,358 | 55,846 | 52,152 |
Applicable income tax (provision) benefits | 2,968 | 3,384 | 4,364 |
Income (loss) before equity in undistributed earnings of subsidiaries | 44,326 | 59,230 | 56,516 |
Equity in undistributed (loss) earnings of subsidiaries | 127 | -17,748 | -14,562 |
Net Income | $44,453 | $41,482 | $41,954 |
Condensed_Financial_Informatio4
Condensed Financial Information of First Commonwealth Financial Corporation (parent company only) - Statements of Cash Flow (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net Income | $44,453 | $41,482 | $41,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,721 | 11,090 | 7,912 |
Other net | 8,253 | -2,426 | -4,079 |
Net cash provided by operating activities | 82,137 | 85,734 | 78,724 |
Investing Activities | |||
Purchases of premises and equipment | -10,980 | -9,635 | -10,182 |
Proceeds from sale of other assets | 12,882 | 12,713 | 17,660 |
Net cash used in investing activities | -164,055 | -307,280 | -171,382 |
Financing Activities | |||
Repayments of subordinated debentures | 0 | -34,702 | 0 |
Discount on dividend reinvestment plan purchases | -65 | -112 | -92 |
Dividends paid | -26,174 | -22,344 | -18,759 |
Proceeds from reissuance of treasury stock | 192 | 176 | 1,028 |
Purchase of treasury stock | -30,956 | -33,439 | -36,242 |
Stock option tax benefit | 0 | 0 | 1 |
Net cash provided by financing activities | 79,017 | 196,003 | 117,162 |
Net (decrease) increase in cash and cash equivalents | -2,901 | -25,543 | 24,504 |
Cash and cash equivalents at January 1 | 77,439 | 102,982 | 78,478 |
Cash and cash equivalents at December 31 | 74,538 | 77,439 | 102,982 |
Parent [Member] | |||
Operating Activities | |||
Net Income | 44,453 | 41,482 | 41,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,150 | 3,030 | 3,719 |
Net gain (loss) on sales of assets | 0 | 17 | -107 |
(Increase) decrease in prepaid income taxes | -487 | 3,044 | -3,044 |
Undistributed equity in subsidiaries | -127 | 17,748 | 14,562 |
Other net | 13,077 | 12,964 | 8,789 |
Net cash provided by operating activities | 59,066 | 78,285 | 65,873 |
Investing Activities | |||
Net change in loans | 3 | 4 | 4 |
Purchases of premises and equipment | -47 | -123 | -3,005 |
Proceeds from sale of other assets | 13 | 1,132 | 4,309 |
Net cash used in investing activities | -31 | 1,013 | 1,308 |
Financing Activities | |||
Repayments of subordinated debentures | 0 | -34,702 | 0 |
Discount on dividend reinvestment plan purchases | -65 | -112 | -92 |
Dividends paid | -26,174 | -22,344 | -18,759 |
Proceeds from reissuance of treasury stock | 192 | 176 | 1,028 |
Purchase of treasury stock | -30,956 | -33,439 | -36,242 |
Stock option tax benefit | 0 | 0 | 1 |
Net cash provided by financing activities | -57,003 | -90,421 | -54,064 |
Net (decrease) increase in cash and cash equivalents | 2,032 | -11,123 | 13,117 |
Cash and cash equivalents at January 1 | 8,370 | 19,493 | 6,376 |
Cash and cash equivalents at December 31 | $10,402 | $8,370 | $19,493 |
Condensed_Financial_Informatio5
Condensed Financial Information of First Commonwealth Financial Corporation (Parent Company Only) - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||
Cash Dividends Declared per Common Share (in dollars per share) | $0.28 | $0.23 | $0.18 |
Line of credit | $15,000,000 | ||
Borrowings | $0 | $0 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], USD $) | Jan. 28, 2014 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Additional shares authorized for repurchase | $25,000,000 |