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Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Nonrecurring Basis 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 December 31, 2023 and December 31, 2022:

 

 

 

December 31, 2023

 

 

 

Fair Value Measurements Using:

 

(in thousands)

 

December 31, 2023

 

 

Quoted Prices in
Active Markets
for Identical
Assets (level 1)

 

 

Significant Other
Observable
Inputs
(level 2)

 

 

Significant
Unobservable
Inputs
(level 3)

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

12,320

 

 

$

12,320

 

 

$

—

 

 

$

—

 

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored entities and agencies

 

 

208,366

 

 

 

—

 

 

 

208,366

 

 

 

—

 

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

 

 

1,629,684

 

 

 

—

 

 

 

1,629,684

 

 

 

—

 

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

 

 

268,307

 

 

 

—

 

 

 

268,307

 

 

 

—

 

Obligations of state and political subdivisions

 

 

76,125

 

 

 

—

 

 

 

74,958

 

 

 

1,167

 

Corporate debt securities

 

 

11,847

 

 

 

—

 

 

 

11,847

 

 

 

—

 

Total available-for-sale debt securities

 

$

2,194,329

 

 

$

—

 

 

$

2,193,162

 

 

$

1,167

 

Loans held for sale

 

 

16,354

 

 

 

—

 

 

 

16,354

 

 

 

—

 

Other assets—interest rate derivatives agreements

 

 

72,183

 

 

 

—

 

 

 

72,183

 

 

 

—

 

Total assets recurring fair value measurements

 

$

2,295,186

 

 

$

12,320

 

 

$

2,281,699

 

 

$

1,167

 

Other liabilities—interest rate derivatives agreements

 

 

73,083

 

 

 

—

 

 

 

73,083

 

 

 

—

 

Total liabilities recurring fair value measurements

 

$

73,083

 

 

$

—

 

 

$

73,083

 

 

$

—

 

Nonrecurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

18,273

 

 

$

—

 

 

$

—

 

 

$

18,273

 

Other real estate owned and repossessed assets

 

 

1,497

 

 

 

—

 

 

 

—

 

 

 

1,497

 

Total nonrecurring fair value measurements

 

$

19,770

 

 

$

—

 

 

$

—

 

 

$

19,770

 

 

 

 

 

December 31, 2022

 

 

 

Fair Value Measurements Using:

 

(in thousands)

 

December 31, 2022

 

 

Quoted Prices in
Active Markets
for Identical
Assets (level 1)

 

 

Significant Other
Observable
Inputs
(level 2)

 

 

Significant
Unobservable
Inputs
(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 state 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 derivatives agreements

 

 

75,840

 

 

 

—

 

 

 

75,840

 

 

 

—

 

Total assets recurring fair value measurements

 

$

2,624,735

 

 

$

11,506

 

 

$

2,612,050

 

 

$

1,179

 

Other liabilities—interest rate derivatives agreements

 

 

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

(in thousands)

 

Fair Value
Estimate

 

 

Valuation
Techniques

 

Unobservable
Input

 

Range / Weighted
Average

December 31, 2023:

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

18,273

 

 

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

 

 

1,497

 

 

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 expenses 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 December 31, 2023

 

(in thousands)

 

Carrying
Amount

 

 

Fair Value
Estimate

 

 

Quoted Prices in
Active Markets
for Identical
Assets (level 1)

 

 

Significant
Other
Observable
Inputs
(level 2)

 

 

Significant
Unobservable
Inputs
(level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

595,383

 

 

$

595,383

 

 

$

595,383

 

 

$

—

 

 

$

—

 

Equity securities

 

 

12,320

 

 

 

12,320

 

 

 

12,320

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

2,194,329

 

 

 

2,194,329

 

 

 

—

 

 

 

2,193,162

 

 

 

1,167

 

Net held-to-maturity debt securities

 

 

1,199,335

 

 

 

1,069,159

 

 

 

—

 

 

 

1,068,896

 

 

 

263

 

Net loans

 

 

11,507,786

 

 

 

11,134,250

 

 

 

—

 

 

 

—

 

 

 

11,134,250

 

Loans held for sale

 

 

16,354

 

 

 

16,354

 

 

 

—

 

 

 

16,354

 

 

 

—

 

Other assets—interest rate derivatives

 

 

72,183

 

 

 

72,183

 

 

 

—

 

 

 

72,183

 

 

 

—

 

Accrued interest receivable

 

 

77,435

 

 

 

77,435

 

 

 

77,435

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,168,704

 

 

 

13,146,821

 

 

 

11,937,002

 

 

 

1,209,819

 

 

 

—

 

Federal Home Loan Bank borrowings

 

 

1,350,000

 

 

 

1,349,217

 

 

 

—

 

 

 

1,349,217

 

 

 

—

 

Other borrowings

 

 

105,893

 

 

 

103,057

 

 

 

103,057

 

 

 

—

 

 

 

—

 

Subordinated debt and junior subordinated debt

 

 

279,078

 

 

 

240,898

 

 

 

—

 

 

 

240,898

 

 

 

—

 

Other liabilities—interest rate derivatives

 

 

73,083

 

 

 

73,083

 

 

 

—

 

 

 

73,083

 

 

 

—

 

Accrued interest payable

 

 

11,121

 

 

 

11,121

 

 

 

11,121

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2022

 

(in thousands)

 

Carrying
Amount

 

 

Fair Value
Estimate

 

 

Quoted Prices in
Active Markets
for Identical
Assets (level 1)

 

 

Significant
Other
Observable
Inputs
(level 2)

 

 

Significant
Unobservable
Inputs
(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 derivatives

 

 

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 derivatives

 

 

74,683

 

 

 

74,683

 

 

 

—

 

 

 

74,683

 

 

 

—

 

Accrued interest payable

 

 

4,593

 

 

 

4,593

 

 

 

4,593

 

 

 

—

 

 

 

—