| 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,
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 |
|
|
|
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 |
|
|
|
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 |
|
|
$ |
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.
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