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Fair Value Measurement (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024 and December 31, 2023:

 

 

 

 

 

 

March 31, 2024

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

March 31,

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(unaudited, in thousands)

 

2024

 

 

(level 1)

 

 

(level 2)

 

 

(level 3)

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

13,074

 

 

$

13,074

 

 

$

—

 

 

$

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored entities and agencies

 

 

201,709

 

 

 

—

 

 

 

201,709

 

 

 

—

 

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

 

 

1,572,619

 

 

 

—

 

 

 

1,572,619

 

 

 

—

 

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

 

 

259,847

 

 

 

—

 

 

 

259,847

 

 

 

—

 

Obligations of states and political subdivisions

 

 

73,287

 

 

 

—

 

 

 

72,144

 

 

 

1,143

 

Corporate debt securities

 

 

11,810

 

 

 

—

 

 

 

11,810

 

 

 

—

 

Total available-for-sale debt securities

 

$

2,119,272

 

 

$

—

 

 

$

2,118,129

 

 

$

1,143

 

Loans held for sale

 

 

12,472

 

 

 

—

 

 

 

12,472

 

 

 

—

 

Other assets - interest rate swaps

 

 

78,211

 

 

 

—

 

 

 

78,211

 

 

 

—

 

Total assets recurring fair value measurements

 

$

2,223,029

 

 

$

13,074

 

 

$

2,208,812

 

 

$

1,143

 

Other liabilities - interest rate swaps

 

$

78,312

 

 

$

—

 

 

$

78,312

 

 

$

—

 

Total liabilities recurring fair value measurements

 

$

78,312

 

 

$

—

 

 

$

78,312

 

 

$

—

 

Nonrecurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

18,289

 

 

$

—

 

 

$

—

 

 

$

18,289

 

Other real estate owned and repossessed assets

 

 

1,474

 

 

 

—

 

 

 

—

 

 

 

1,474

 

Total nonrecurring fair value measurements

 

$

19,763

 

 

$

—

 

 

$

—

 

 

$

19,763

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

December 31,

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(in thousands)

 

2023

 

 

(level 1)

 

 

(level 2)

 

 

(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 states 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 swaps

 

 

72,183

 

 

 

—

 

 

 

72,183

 

 

 

—

 

Total assets recurring fair value measurements

 

$

2,295,186

 

 

$

12,320

 

 

$

2,281,699

 

 

$

1,167

 

Other liabilities - interest rate swaps

 

$

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

 

 
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)

March 31, 2024

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

18,289

 

 

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

 

$

1,474

 

 

Appraisal of collateral (1), (3)

 

 

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)

 

 

 

(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

 

 

 

 

 

 

 

 

 

March 31, 2024

 

 

 

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

 

$

509,669

 

 

$

509,669

 

 

$

509,669

 

 

$

—

 

 

$

—

 

Equity securities

 

 

13,074

 

 

 

13,074

 

 

 

13,074

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

2,119,272

 

 

 

2,119,272

 

 

 

—

 

 

 

2,118,129

 

 

 

1,143

 

Net held-to-maturity debt securities

 

 

1,189,827

 

 

 

1,052,444

 

 

 

—

 

 

 

1,052,184

 

 

 

260

 

Net loans

 

 

11,743,977

 

 

 

11,329,520

 

 

 

—

 

 

 

—

 

 

 

11,329,520

 

Loans held for sale

 

 

12,472

 

 

 

12,472

 

 

 

—

 

 

 

12,472

 

 

 

—

 

Other assets - interest rate derivatives

 

 

78,211

 

 

 

78,211

 

 

 

—

 

 

 

78,211

 

 

 

—

 

Accrued interest receivable

 

 

78,564

 

 

 

78,564

 

 

 

78,564

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,496,773

 

 

 

13,475,426

 

 

 

12,157,536

 

 

 

1,317,890

 

 

 

—

 

Federal Home Loan Bank borrowings

 

 

1,100,000

 

 

 

1,098,495

 

 

 

—

 

 

 

1,098,495

 

 

 

—

 

Other borrowings

 

 

72,935

 

 

 

68,622

 

 

 

68,622

 

 

 

—

 

 

 

—

 

Subordinated debt and junior subordinated debt

 

 

279,136

 

 

 

230,188

 

 

 

—

 

 

 

230,188

 

 

 

—

 

Other liabilities - interest rate derivatives

 

 

78,312

 

 

 

78,312

 

 

 

—

 

 

 

78,312

 

 

 

—

 

Accrued interest payable

 

 

15,929

 

 

 

15,929

 

 

 

15,929

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

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

 

$

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

 

 

 

—

 

 

 

—