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Fair Value Measurement (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Nonrecurring Basis

The fair value amounts presented in the table below are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The following tables set forth Wesbanco’s financial assets and liabilities that were accounted for at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as of September 30, 2023 and December 31, 2022:

 

 

 

 

 

 

September 30, 2023

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

September 30,

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(unaudited, in thousands)

 

2023

 

 

(level 1)

 

 

(level 2)

 

 

(level 3)

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

11,453

 

 

$

11,453

 

 

$

—

 

 

$

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored entities and agencies

 

 

201,512

 

 

 

—

 

 

 

201,512

 

 

 

—

 

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

1,615,276

 

 

 

—

 

 

 

1,615,276

 

 

 

—

 

Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

293,247

 

 

 

—

 

 

 

293,247

 

 

 

—

 

Obligations of states and political subdivisions

 

 

74,447

 

 

 

—

 

 

 

73,334

 

 

 

1,113

 

Corporate debt securities

 

 

11,659

 

 

 

—

 

 

 

11,659

 

 

 

—

 

Total available-for-sale debt securities

 

$

2,196,141

 

 

$

—

 

 

$

2,195,028

 

 

$

1,113

 

Loans held for sale

 

 

17,677

 

 

 

—

 

 

 

17,677

 

 

 

—

 

Other assets - interest rate swaps

 

 

97,215

 

 

 

—

 

 

 

97,215

 

 

 

—

 

Total assets recurring fair value measurements

 

$

2,322,486

 

 

$

11,453

 

 

$

2,309,920

 

 

$

1,113

 

Other liabilities - interest rate swaps

 

$

95,567

 

 

$

—

 

 

$

95,567

 

 

$

—

 

Total liabilities recurring fair value measurements

 

$

95,567

 

 

$

—

 

 

$

95,567

 

 

$

—

 

Nonrecurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

9,258

 

 

$

—

 

 

$

—

 

 

$

9,258

 

Other real estate owned and repossessed assets

 

 

1,333

 

 

 

—

 

 

 

—

 

 

 

1,333

 

Total nonrecurring fair value measurements

 

$

10,591

 

 

$

—

 

 

$

—

 

 

$

10,591

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

December 31,

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(in thousands)

 

2022

 

 

(level 1)

 

 

(level 2)

 

 

(level 3)

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

11,506

 

 

$

11,506

 

 

$

—

 

 

$

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored entities and agencies

 

 

225,970

 

 

 

—

 

 

 

225,970

 

 

 

—

 

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

1,846,053

 

 

 

—

 

 

 

1,846,053

 

 

 

—

 

Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

349,731

 

 

 

—

 

 

 

349,731

 

 

 

—

 

Obligations of states and political subdivisions

 

 

92,228

 

 

 

—

 

 

 

91,049

 

 

 

1,179

 

Corporate debt securities

 

 

15,158

 

 

 

—

 

 

 

15,158

 

 

 

—

 

Total available-for-sale debt securities

 

$

2,529,140

 

 

$

—

 

 

$

2,527,961

 

 

$

1,179

 

Loans held for sale

 

 

8,249

 

 

 

—

 

 

 

8,249

 

 

 

—

 

Other assets - interest rate swaps

 

 

75,840

 

 

 

—

 

 

 

75,840

 

 

 

—

 

Total assets recurring fair value measurements

 

$

2,624,735

 

 

$

11,506

 

 

$

2,612,050

 

 

$

1,179

 

Other liabilities - interest rate swaps

 

$

74,683

 

 

$

—

 

 

$

74,683

 

 

$

—

 

Total liabilities recurring fair value measurements

 

$

74,683

 

 

$

—

 

 

$

74,683

 

 

$

—

 

Nonrecurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

878

 

 

$

—

 

 

$

—

 

 

$

878

 

Other real estate owned and repossessed assets

 

 

1,486

 

 

 

—

 

 

 

—

 

 

 

1,486

 

Total nonrecurring fair value measurements

 

$

2,364

 

 

$

—

 

 

$

—

 

 

$

2,364

 

 
Schedule of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Wesbanco has utilized level 3 inputs to determine fair value:

 

 

 

Quantitative Information about Level 3 Fair Value Measurements

 

 

Fair Value

 

 

Valuation

 

Unobservable

 

Range (Weighted

(unaudited, in thousands)

 

Estimate

 

 

Techniques

 

Input

 

Average)

September 30, 2023

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

9,258

 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

(0.0%)/(0.0%)

 

 

 

 

 

 

 

Liquidation expenses (2)

 

(8.0%)/(8.0%)

Other real estate owned and repossessed assets

 

$

1,333

 

 

Appraisal of collateral (1), (3)

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

878

 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

(0.0%)/(0.0%)

 

 

 

 

 

 

 

Liquidation expenses (2)

 

(8.0%)/(8.0%)

Other real estate owned and repossessed assets

 

$

1,486

 

 

Appraisal of collateral (1), (3)

 

 

 

(1)
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs, which are not identifiable.
(2)
Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expense are presented as a percent of the appraisal.
(3)
Includes estimated liquidation expenses and numerous dissimilar qualitative adjustments by management, which are not identifiable.
Estimates Fair Values of Financial Instruments

The estimated fair values of Wesbanco’s financial instruments are summarized below:

 

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

Carrying

 

 

Fair Value

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(unaudited, in thousands)

 

Amount

 

 

Estimate

 

 

(level 1)

 

 

(level 2)

 

 

(level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

495,082

 

 

$

495,082

 

 

$

495,082

 

 

$

—

 

 

$

—

 

Equity securities

 

 

11,453

 

 

 

11,453

 

 

 

11,453

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

2,196,141

 

 

 

2,196,141

 

 

 

—

 

 

 

2,195,028

 

 

 

1,113

 

Net held-to-maturity debt securities

 

 

1,210,812

 

 

 

998,987

 

 

 

—

 

 

 

998,701

 

 

 

286

 

Net loans

 

 

11,189,258

 

 

 

10,786,103

 

 

 

—

 

 

 

—

 

 

 

10,786,103

 

Loans held for sale

 

 

17,677

 

 

 

17,677

 

 

 

—

 

 

 

17,677

 

 

 

—

 

Other assets - interest rate swaps

 

 

97,215

 

 

 

97,215

 

 

 

—

 

 

 

97,215

 

 

 

—

 

Accrued interest receivable

 

 

73,014

 

 

 

73,014

 

 

 

73,014

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,090,228

 

 

 

13,059,688

 

 

 

11,913,807

 

 

 

1,145,881

 

 

 

—

 

Federal Home Loan Bank borrowings

 

 

1,125,000

 

 

 

1,121,779

 

 

 

—

 

 

 

1,121,779

 

 

 

—

 

Other borrowings

 

 

106,693

 

 

 

100,874

 

 

 

100,874

 

 

 

—

 

 

 

—

 

Subordinated debt and junior subordinated debt

 

 

282,079

 

 

 

246,352

 

 

 

 

 

 

246,352

 

 

 

—

 

Other liabilities - interest rate swaps

 

 

95,567

 

 

 

95,567

 

 

 

—

 

 

 

95,567

 

 

 

—

 

Accrued interest payable

 

 

11,416

 

 

 

11,416

 

 

 

11,416

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

Carrying

 

 

Fair Value

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(in thousands)

 

Amount

 

 

Estimate

 

 

(level 1)

 

 

(level 2)

 

 

(level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

408,411

 

 

$

408,411

 

 

$

408,411

 

 

$

—

 

 

$

—

 

Equity securities

 

 

11,506

 

 

 

11,506

 

 

 

11,506

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

2,529,140

 

 

 

2,529,140

 

 

 

—

 

 

 

2,527,961

 

 

 

1,179

 

Net held-to-maturity debt securities

 

 

1,248,409

 

 

 

1,084,390

 

 

 

—

 

 

 

1,084,071

 

 

 

319

 

Net loans

 

 

10,584,938

 

 

 

9,487,038

 

 

 

—

 

 

 

—

 

 

 

9,487,038

 

Loans held for sale

 

 

8,249

 

 

 

8,249

 

 

 

—

 

 

 

8,249

 

 

 

—

 

Other assets - interest rate swaps

 

 

75,840

 

 

 

75,840

 

 

 

—

 

 

 

75,840

 

 

 

—

 

Accrued interest receivable

 

 

68,522

 

 

 

68,522

 

 

 

68,522

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,131,090

 

 

 

13,142,943

 

 

 

12,245,272

 

 

 

897,671

 

 

 

—

 

Federal Home Loan Bank borrowings

 

 

705,000

 

 

 

705,094

 

 

 

—

 

 

 

705,094

 

 

 

—

 

Other borrowings

 

 

135,069

 

 

 

122,926

 

 

 

122,926

 

 

 

—

 

 

 

—

 

Subordinated debt and junior subordinated debt

 

 

281,404

 

 

 

258,631

 

 

 

—

 

 

 

258,631

 

 

 

—

 

Other liabilities - interest rate swaps

 

 

74,683

 

 

 

74,683

 

 

 

—

 

 

 

74,683

 

 

 

—

 

Accrued interest payable

 

 

4,593

 

 

 

4,593

 

 

 

4,593

 

 

 

—

 

 

 

—