v3.26.1
Leases Lease Liability Maturity (Tables)
 3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
Lessee, Operating Leases [Text Block] Leases
First Commonwealth has elected to apply certain practical expedients provided under ASU 2016-02 "Leases" (Topic 842) including (i) to not apply the requirements in the new standard to short-term leases; (ii) to not reassess the lease classification for any expired or existing lease; (iii) to account for lease and non-lease components separately; and (iv) to not reassess initial direct costs for any existing leases. The impact of this standard primarily relates to operating leases of certain real estate properties, including certain branch and ATM locations and office space. First Commonwealth has no material leasing arrangements for which it is the lessor of property or equipment.
The following table represents the unaudited Consolidated Statements of Condition classification of the Company’s right of use ("ROU") assets and lease liabilities, lease costs and other lease information.
March 31, 2026December 31, 2025
Balance sheet:(dollars in thousands)
Operating lease asset classified as premises and equipment$36,788 $38,170 
Operating lease liability classified as other liabilities41,226 42,627 
For the Three Months Ended
March 31, 2026March 31, 2025
Income statement:(dollars in thousands)
    Operating lease cost classified as occupancy and equipment expense
$1,365 $1,410 
Weighted average lease term, in years11.5512.83
Weighted average discount rate3.92 %3.80 %
Operating cash flows$1,384 $1,424 
The ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. First Commonwealth's lease agreements often include one or more options to renew at the Company's discretion. If we consider the renewal option to be reasonably certain, we include the extended term in the calculation of the ROU asset and lease liability.
First Commonwealth uses incremental borrowing rates when calculating the lease liability because the rate implicit in the lease is not readily determinable. The incremental borrowing rate used by First Commonwealth is an amortizing loan rate obtained from the Federal Home Loan Bank ("FHLB") of Pittsburgh. This rate is consistent with a collateralized borrowing rate and is available for terms similar to the lease payment schedules.
Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2026 were as follows (dollars in thousands):
For the twelve months ended:
March 31, 2027$4,050 
March 31, 20285,161 
March 31, 20294,832 
March 31, 20304,769 
March 31, 20314,309 
Thereafter28,543 
Total future minimum lease payments51,664 
Less remaining imputed interest10,438 
Operating lease liability$41,226 
Lessee, Operating Lease, Liability, Maturity
Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2026 were as follows (dollars in thousands):
For the twelve months ended:
March 31, 2027$4,050 
March 31, 20285,161 
March 31, 20294,832 
March 31, 20304,769 
March 31, 20314,309 
Thereafter28,543 
Total future minimum lease payments51,664 
Less remaining imputed interest10,438 
Operating lease liability$41,226 
Lease, Cost
The following table represents the unaudited Consolidated Statements of Condition classification of the Company’s right of use ("ROU") assets and lease liabilities, lease costs and other lease information.
March 31, 2026December 31, 2025
Balance sheet:(dollars in thousands)
Operating lease asset classified as premises and equipment$36,788 $38,170 
Operating lease liability classified as other liabilities41,226 42,627 
For the Three Months Ended
March 31, 2026March 31, 2025
Income statement:(dollars in thousands)
    Operating lease cost classified as occupancy and equipment expense
$1,365 $1,410 
Weighted average lease term, in years11.5512.83
Weighted average discount rate3.92 %3.80 %
Operating cash flows$1,384 $1,424