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Securities
 6 Months Ended
Jun. 30, 2012
Securities [Abstract]  
SECURITIES

NOTE 3. SECURITIES

The following table presents the fair value and amortized cost of available-for-sale and held-to-maturity securities:

 

                                                                 
    June 30, 2012     December 31, 2011  

(unaudited, in thousands)

   Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Estimated
Fair
Value		     Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Estimated
Fair
Value		  

Available-for-sale

                                                                

Other government agencies

   $ 95,897     $ 348     $ (175 )    $ 96,070     $ 197,898     $ 834     $ (12 )    $ 198,720  

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

     707,814       8,400       (488 )      715,726       579,430       9,244       (582 )      588,092  

Obligations of state and political subdivisions

    158,105       9,139       (63 )      167,181       171,782       8,664       (13 )      180,433  

Corporate debt securities

     38,745       276       (451 )      38,570       45,002       107       (1,043 )      44,066  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total debt securities

   $ 1,000,561     $ 18,163     $ (1,177 )    $ 1,017,547     $ 994,112     $ 18,849     $ (1,650 )    $ 1,011,311  

Equity securities

     4,747       830       —         5,577       4,179       851       (1 )      5,029  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total available-for-sale securities

   $ 1,005,308     $ 18,993     $ (1,177 )    $ 1,023,124     $ 998,291     $ 19,700     $ (1,651 )    $ 1,016,340  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Held-to-maturity

                                                                

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

   $ 198,870     $ 7,444     $ (58 )    $ 206,256     $ 247,938     $ 7,223     $ (87 )    $ 255,074  

Other residential collateralized mortgage obligations

     451       11       —         462       783       9       (1 )      791  

Obligations of state and political subdivisions

     373,350       27,473       (509 )      400,314       342,752       21,459       (138 )      364,073  

Corporate debt securities

     —         —         —         —         1,452       82       —         1,534  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total held-to-maturity securities

   $ 572,671     $ 34,928     $ (567 )    $ 607,032     $ 592,925     $ 28,773     $ (226 )    $ 621,472  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total securities

   $ 1,577,979     $ 53,921     $ (1,744 )    $ 1,630,156     $ 1,591,216     $ 48,473     $ (1,877 )    $ 1,637,812  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

At June 30, 2012, and December 31, 2011, there were no holdings of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of WesBanco’s shareholders’ equity.

 

The following table presents the fair value of available-for-sale and held-to-maturity securities by contractual maturity at June 30, 2012. In many instances, the issuers may have the right to call or prepay obligations without penalty prior to the contractual maturity date.

 

                                                 
    June 30, 2012  

(unaudited, in thousands)

   One Year
or less		     One to
Five Years		     Five to
Ten Years		     After
Ten Years		     Mortgage-backed
and Equity		     Total  

Available-for-sale

                                                

Other government agencies

   $ 2,571     $ 15,104     $ 40,790     $ 37,605     $ —       $ 96,070  

Residential mortgage-backed securities and collateralized mortgage obligations of government agencies (1)

     —         —         —         —         715,726       715,726  

Obligations of states and political subdivisions

     5,446       47,937       58,109       55,689       —         167,181  

Corporate debt securities

     3,253       30,474       1,886       2,957       —         38,570  

Equity securities (3)

     —         —         —         —         5,577       5,577  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total available-for-sale securities

   $ 11,270     $ 93,515     $ 100,785     $ 96,251     $ 721,303     $ 1,023,124  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Held-to-maturity (2)

                                                

Residential mortgage-backed securities and collateralized mortgage obligations of government agencies (1)

   $ —       $ —       $ —       $ —       $ 206,256     $ 206,256  

Other residential collateralized mortgage obligations (1)

     —         —         —         —         462       462  

Obligations of states and political subdivisions

     1,177       7,840       57,128       334,169       —         400,314  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total held-to-maturity securities

   $ 1,177     $ 7,840     $ 57,128     $ 334,169     $ 206,718     $ 607,032  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total securities

   $ 12,447     $ 101,355     $ 157,913     $ 430,420     $ 928,021     $ 1,630,156  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)

Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds.

(2)

The held-to-maturity portfolio is carried at an amortized cost of $572.7 million.

(3) Equity securities, which have no stated maturity, are not assigned a maturity category.

Securities with aggregate fair values of $696.9 million and $691.8 million at June 30, 2012 and December 31, 2011, respectively, were pledged as security for public and trust funds, and securities sold under agreements to repurchase. Proceeds from the sale of available-for-sale securities were $42.8 million and $0 for the six months ended June 30, 2012 and 2011, respectively. Net unrealized gains on available-for-sale securities included in accumulated other comprehensive income, net of tax, as of June 30, 2012 and December 31, 2011 were $11.2 million and $11.3 million, respectively. For the six months ended June 30, 2012 and 2011, gross security gains recognized in income were $1.4 million and $36 thousand, respectively. For the same periods, gross security losses recognized in income were immaterial.

 

The following table provides information on unrealized losses on investment securities that have been in an unrealized loss position for less than twelve months and twelve months or more as of June 30, 2012 and December 31, 2011:

 

                                                                         
    June 30, 2012  
    Less than 12 months     12 months or more     Total  

(unaudited, dollars in thousands)

   Fair
Value		     Unrealized
Losses		     # of
Securities		     Fair
Value		     Unrealized
Losses		     # of
Securities		     Fair
Value		     Unrealized
Losses		     # of
Securities		  

Other government agencies

   $ 38,077     $ (175 )      6     $ —       $ —         —       $ 38,077     $ (175 )      6  
                   

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

     128,008       (529 )      24       552       (17 )      1       128,560       (546 )      25  

Obligations of states and political subdivisions

     40,560       (572 )      59       —         —         —         40,560       (572 )      59  

Corporate debt securities

     7,985       (96 )      4       11,645       (355 )      4       19,630       (451 )      8  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total temporarily impaired securities

   $ 214,630     $ (1,372 )      93     $ 12,197     $ (372 )      5     $ 226,827     $ (1,744 )      98  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                                                         
    December 31, 2011  
    Less than 12 months     12 months or more     Total  

(unaudited, dollars in thousands)

   Fair
Value		     Unrealized
Losses		     # of
Securities		     Fair
Value		     Unrealized
Losses		     # of
Securities		     Fair
Value		     Unrealized
Losses		     # of
Securities		  

Other government agencies

   $ 24,486     $ (12 )      7     $ —       $ —         —       $ 24,486     $ (12 )      7  
                   

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

     133,106       (646 )      34       795       (23 )      2       133,901       (669 )      36  
                   

Other residential collateralized mortgage obligations

     185       (1 )      1       —         —         —         185       (1 )      1  

Obligations of states and political subdivisions

     14,443       (146 )      20       1,902       (5 )      4       16,345       (151 )      24  

Corporate debt securities

     19,763       (145 )      11       13,103       (898 )      5       32,866       (1,043 )      16  

Equity securities

     4       (1 )      2       —         —         —         4       (1 )      2  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total temporarily impaired securities

   $ 191,987     $ (951 )      75     $ 15,800     $ (926 )      11     $ 207,787     $ (1,877 )      86  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized losses on debt securities in the table represent temporary fluctuations resulting from changes in market rates in relation to fixed yields. Unrealized losses in the available-for-sale portfolio are accounted for as an adjustment, net of taxes, to other comprehensive income in shareholders’ equity.

WesBanco does not believe the securities presented above are impaired due to reasons of credit quality, as all debt securities are of investment grade quality and all are paying principal and interest according to their contractual terms. WesBanco does not intend to sell, nor is it more likely than not that it will be required to sell, loss position securities prior to recovery of their cost, and therefore, management believes the unrealized losses detailed above are temporary and no impairment loss relating to these securities has been recognized.

Securities that do not have readily determinable fair values and for which WesBanco does not exercise significant influence are carried at cost. Cost method investments consist primarily of FHLB of Pittsburgh and FHLB of Cincinnati stock totaling $19.7 million and $21.9 million at June 30, 2012 and December 31, 2011, respectively, and are included in other assets in the Consolidated Balance Sheets. Cost method investments are evaluated for impairment whenever events or circumstances suggest that their carrying value may not be recoverable.