Incentive Compensation Plan
On January 30, 2024, the Board of Directors of the Company adopted, with shareholder approval, the First Commonwealth Financial Corporation 2024 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 4,314,537 shares were still available for awards as of December 31, 2025.
Restricted Stock
Restricted stock awards were issued in 2025, 2024 and 2023 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.
Compensation expense related to restricted stock was $4.9 million, $4.9 million and $3.8 million in 2025, 2024 and 2023, respectively. As of December 31, 2025, there was $5.5 million of unrecognized compensation cost related to unvested restricted stock awards granted. The cost is expected to be recognized over a period of one to three years.
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:
 202520242023
 SharesWeighted
Average
Grant Date
Fair Value
SharesWeighted
Average
Grant Date
Fair Value
SharesWeighted
Average
Grant Date
Fair Value
Outstanding, beginning of the year399,497 $14.68 317,065 $14.62 311,265 $14.48 
Granted126,515 16.31 212,572 14.29 106,750 14.32 
Vested(129,925)15.55 (120,265)13.83 (90,810)13.76 
Forfeited(4,000)14.50 (9,875)14.87 (10,140)14.86 
Outstanding, end of the year392,087 14.92 399,497 14.68 317,065 14.62 
The following provides detail on restricted stock awards estimated to be granted on a performance award basis during 2025, 2024 and 2023. These plans were previously approved by the Board of Directors.
Grant DateTarget Share AwardPerformance Period (years)Award if threshold metAward if targets are metAward if superior met Award if threshold not achievedVesting After Performance Period (years)Final vesting
February 18, 2021143,400 340 %100 %200 %— %0December 31, 2023
February 17, 2022121,200 340 %100 %200 %— %0December 31, 2024
January 23, 2023159,000 340 %100 %200 %— %0December 31, 2025
January 29, 2024167,800 340 %100 %200 %— %0December 31, 2026
January 27, 2025159,800 340 %100 %200 %— %0December 31, 2027
The following table summarizes the estimated unvested target share awards for the Plans as of December 31:
 202520242023
Outstanding, beginning of the year475,225 453,714 434,352 
Granted203,523 276,161 162,774 
Issued(155,956)(215,100)(143,412)
Forfeited(34,700)(39,550)— 
Outstanding, end of the year488,092 475,225 453,714 
Based on a Monte Carlo simulation, the above grants have the following fair market values per share:
Proportional Fair Value
50%25%25%
February 18, 2021$12.77 $16.41 $11.45 
February 17, 202216.56 21.08 15.20 
January 23, 202314.06 17.53 12.70 
January 29, 202415.05 17.09 13.64 
January 27, 202516.77 18.14 15.30 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 3, 2025
2023Feb 29, 2024

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.