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Securities
 3 Months Ended
Mar. 31, 2013
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:

 

                                                                 
    March 31, 2013     December 31, 2012  

(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

   $ 65,281     $ 199     $ (31 )    $ 65,449     $ 96,257     $ 411     $ (56 )    $ 96,612  

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

     729,647       9,822       (527 )      738,942       721,824       10,690       (304 )      732,210  

Obligations of state and political subdivisions

    130,913       8,754       (47 )      139,620       139,511       9,133       (9 )      148,635  

Corporate debt securities

     37,959       239       (62 )      38,136       32,706       213       (234 )      32,685  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total debt securities

   $ 963,800     $ 19,014     $ (667 )    $ 982,147     $ 990,298     $ 20,447     $ (603 )    $ 1,010,142  

Equity securities

     9,952       1,211       (40 )      11,123       10,207       916       (21 )      11,102  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total available-for-sale securities

   $ 973,752     $ 20,225     $ (707 )    $ 993,270     $ 1,000,505     $ 21,363     $ (624 )    $ 1,021,244  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Held-to-maturity

                                                                

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

   $ 133,186     $ 5,626     $ (69 )    $ 138,743     $ 152,872     $ 6,421     $ (80 )    $ 159,213  

Other residential collateralized mortgage obligations

     305       7       —         312       353       8       —         361  

Obligations of state and political subdivisions

     458,542       28,823       (1,793 )      485,572       449,284       31,244       (829 )      479,699  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total held-to-maturity securities

  $ 592,033     $ 34,456     $ (1,862 )    $ 624,627     $ 602,509     $ 37,673     $ (909 )    $ 639,273  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total securities

   $ 1,565,785     $ 54,681     $ (2,569 )    $ 1,617,897     $ 1,603,014     $ 59,036     $ (1,533 )    $ 1,660,517  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

At March 31, 2013, and December 31, 2012, 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 March 31, 2013. In many instances, the issuers may have the right to call or prepay obligations without penalty prior to the contractual maturity date.

 

                                                     
    March 31, 2013  

(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

   $ —           $ 17,866     $ 38,441     $ 9,142     $ —       $ 65,449  

Residential mortgage-backed securities and

collateralized mortgage obligations of

government agencies (1)

     —             —         —         —         738,942       738,942  

Obligations of states and political subdivisions

     8,767           42,834       35,567       52,452       —         139,620  

Corporate debt securities

     5,135           17,316       7,744       7,941       —         38,136  

Equity securities (2)

     —             —         —         —         11,123       11,123  
   

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total available-for-sale securities

   $ 13,902         $ 78,016     $ 81,752     $ 69,535     $ 750,065     $ 993,270  
   

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Held-to-maturity (3)

                                                    

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

   $ —           $ —       $ —       $ —       $ 138,743     $ 138,743  

Other residential collateralized mortgage obligations (1)

     —             —         —         —         312       312  

Obligations of states and political subdivisions

     2,728           9,390       117,252       356,202       —         485,572  
   

 

 

    

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
                                                     

Total held-to-maturity securities

   $ 2,728         $ 9,390     $ 117,252     $ 356,202     $ 139,055     $ 624,627  
   

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total securities

   $ 16,630         $ 87,406     $ 199,004     $ 425,737     $ 889,120     $ 1,617,897  
   

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(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)

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

(3) 

The held-to-maturity portfolio is carried at an amortized cost of $592.0 million.

 

Securities with aggregate par values of $686.1 million and $710.5 million at March 31, 2013 and December 31, 2012, 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 $3.4 million and $3.1 million for the three months ended March 31, 2013 and 2012, respectively. Net unrealized gains on available-for-sale securities included in accumulated other comprehensive income, net of tax, as of March 31, 2013 and December 31, 2012 were $12.3 million and $13.0 million, respectively. Gross security gains of $53 thousand and $0.1 million on available-for-sale securities were realized for the three months ended March 31, 2013 and 2012. Gross security losses on available-for-sale securities of $37 thousand were realized for the three months ended March 31, 2013.

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 March 31, 2013 and December 31, 2012:

 

                                                                         
    March 31, 2013  
    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

   $ 8,047     $ (4 )      3     $ 4,664     $ (27 )      1     $ 12,711     $ (31 )      4  

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

     93,980       (502 )      18       7,294       (94 )      8       101,274       (596 )      26  

Obligations of states and political subdivisions

     97,422       (1,736 )      145       3,999       (104 )      3       101,421       (1,840 )      148  

Corporate debt securities

     1,980       (3 )      1       7,941       (59 )      3       9,921       (62 )      4  

Equity securities

     2,848       (40 )      2       —         —         —         2,848       (40 )      2  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total temporarily impaired securities

   $ 204,277     $ (2,285 )      169     $ 23,898     $ (284 )      15     $ 228,175     $ (2,569 )      184  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   
    December 31, 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

   $ 18,894     $ (56 )      6     $ —       $ —         —       $ 18,894     $ (56 )      6  

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

     38,913       (258 )      20       9,966       (126 )      10       48,879       (384 )      30  

Obligations of states and political subdivisions

     72,521       (838 )      107       —         —         —         72,521       (838 )      107  

Corporate debt securities

     1,526       (57 )      2       10,878       (177 )      5       12,404       (234 )      7  

Equity securities

     2,838       (21 )      2       —         —         —         2,838       (21 )      2  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total temporarily impaired securities

   $ 134,692     $ (1,230 )      137     $ 20,844     $ (303 )      15     $ 155,536     $ (1,533 )      152  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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 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 $18.4 million and $21.3 million at March 31, 2013 and December 31, 2012, 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.