NOTE 3. SECURITIES

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


	June 30, 2014									December 31, 2013
*(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
Obligations of government agencies	$	79,164	$	382	$	(644	)	$	78,902	$	75,164	$	6	$	(1,938	)	$	73,232
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		772,918		4,114		(9,550	)		767,482		707,000		3,191		(15,924	)		694,267
Obligations of states and political subdivisions		104,553		5,700		(14	)		110,239		112,536		4,165		(355	)		116,346
Corporate debt securities		36,731		260		(99	)		36,892		38,777		174		(470	)		38,481

Total debt securities	$	993,366	$	10,456	$	(10,307	)	$	993,515	$	933,477	$	7,536	$	(18,687	)	$	922,326
Equity securities		11,270		1,294		—			12,564		10,597		1,463		—			12,060

Total available-for-sale securities	$	1,004,636	$	11,750	$	(10,307	)	$	1,006,079	$	944,074	$	8,999	$	(18,687	)	$	934,386

Held-to-maturity
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies	$	88,897	$	3,705	$	(501	)	$	92,101	$	99,409	$	2,804	$	(1,023	)	$	101,190
Obligations of states and political subdivisions		513,058		20,866		(3,206	)		530,718		496,396		10,158		(13,906	)		492,648
Corporate debt securities		5,740		66		(85	)		5,721		2,715		—		(245	)		2,470

Total held-to-maturity securities	$	607,695	$	24,637	$	(3,792	)	$	628,540	$	598,520	$	12,962	$	(15,174	)	$	596,308

Total securities	$	1,612,331	$	36,387	$	(14,099	)	$	1,634,619	$	1,542,594	$	21,961	$	(33,861	)	$	1,530,694

At June 30, 2014, and December 31, 2013, 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, 2014. In some instances, the issuers may have the right to call or prepay obligations without penalty prior to the contractual maturity date.

June 30, 2014

(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

Obligations of government agencies

313

9,833

26,123

42,633

—

78,902

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

—

767,482

Obligations of states and political subdivisions

7,072

43,257

21,615

38,295

—

110,239

Corporate debt securities

4,018

15,939

12,044

4,891

—

36,892

Equity securities ⁽²⁾

—

12,564

Total available-for-sale securities

11,403

69,029

59,782

85,819

780,046

1,006,079

Held-to-maturity ⁽³⁾

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

—

92,101

Obligations of states and political subdivisions

4,743

12,390

178,977

334,608

—

530,718

Corporate debt securities

—

5,721

—

5,721

Total held-to-maturity securities

4,743

12,390

184,698

334,608

92,101

628,540

Total securities

16,146

81,419

244,480

420,427

872,147

1,634,619

⁽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 $607.7 million.

Securities with aggregate fair values of $707.5 million and $701.7 million at June 30, 2014 and December 31, 2013, 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 $3.5 million and $9.3 million for the six months ended June 30, 2014 and 2013, respectively. Net unrealized gains (losses) on available-for-sale securities included in accumulated other comprehensive income net of tax, as of June 30, 2014 and December 31, 2013 were $0.9 million and ($6.1) million, respectively.

The following tables provide 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, 2014 and December 31, 2013:


	June 30, 2014
	Less than 12 months							12 months or more							Total
	Fair		Unrealized			# of		Fair		Unrealized			# of		Fair		Unrealized			# of
*(unaudited, dollars in thousands)*	Value		Losses			Securities		Value		Losses			Securities		Value		Losses			Securities
Obligations of government agencies	$	18,919	$	(124	)		5	$	19,790	$	(520	)		5	$	38,709	$	(644	)		10
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		191,506		(1,380	)		37		239,724		(8,671	)		42		431,230		(10,051	)		79
Obligations of states and political subdivisions		20,790		(107	)		34		115,199		(3,113	)		177		135,989		(3,220	)		211
Corporate debt securities		4,996		(4	)		1		4,525		(180	)		2		9,521		(184	)		3

Total temporarily impaired securities	$	236,211	$	(1,615	)		77	$	379,238	$	(12,484	)		226	$	615,449	$	(14,099	)		303


	December 31, 2013
	Less than 12 months							12 months or more							Total
	Fair		Unrealized			# of		Fair		Unrealized			# of		Fair		Unrealized			# of
*(unaudited, dollars in thousands)*	Value		Losses			Securities		Value		Losses			Securities		Value		Losses			Securities
Obligations of government agencies	$	54,356	$	(1,911	)		15	$	5,083	$	(27	)		2	$	59,439	$	(1,938	)		17
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		513,495		(14,639	)		89		37,002		(2,308	)		11		550,497		(16,947	)		100
Obligations of states and political subdivisions		181,667		(10,830	)		277		47,793		(3,431	)		76		229,460		(14,261	)		353
Corporate debt securities		19,837		(560	)		7		2,845		(155	)		1		22,682		(715	)		8

Total temporarily impaired securities	$	769,355	$	(27,940	)		388	$	92,723	$	(5,921	)		90	$	862,078	$	(33,861	)		478

Unrealized losses on debt securities in the tables 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 there are no debt securities rated below investment grade 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 Federal Home Loan Bank (“FHLB”) Pittsburgh and FHLB Cincinnati stock totaling $15.0 million and $11.6 million at June 30, 2014 and December 31, 2013, 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.