NOTE 4. SECURITIES

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


	March 31, 2015									December 31, 2014
*(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	$	79,315	$	1,486	$	(33	)	$	80,768	$	86,964	$	1,087	$	(315	)	$	87,736
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		1,279,350		8,091		(3,996	)		1,283,445		703,535		4,336		(6,758	)		701,113
Obligations of states and political subdivisions		89,977		5,693		(17	)		95,653		86,073		5,365		(5	)		91,433
Corporate debt securities		182,781		430		(121	)		183,090		25,974		141		(119	)		25,996

Total debt securities	$	1,631,423	$	15,700	$	(4,167	)	$	1,642,956	$	902,546	$	10,929	$	(7,197	)	$	906,278
Equity securities		10,702		606		—			11,308		10,304		842		—			11,146

Total available-for-sale securities	$	1,642,125	$	16,306	$	(4,167	)	$	1,654,264	$	912,850	$	11,771	$	(7,197	)	$	917,424

Held-to-maturity
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies	$	126,935	$	3,244	$	(208	)	$	129,971	$	79,004	$	3,262	$	(246	)	$	82,020
Obligations of states and political subdivisions		610,249		26,560		(878	)		635,931		507,927		23,917		(1,043	)		530,801
Corporate debt securities		6,741		200		—			6,941		6,739		106		(49	)		6,796

Total held-to-maturity securities	$	743,925	$	30,004	$	(1,086	)	$	772,843	$	593,670	$	27,285	$	(1,338	)	$	619,617

Total securities	$	2,386,050	$	46,310	$	(5,253	)	$	2,427,107	$	1,506,520	$	39,056	$	(8,535	)	$	1,537,041

At March 31, 2015, and December 31, 2014, 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, 2015. In some instances, the issuers may have the right to call or prepay obligations without penalty prior to the contractual maturity date.

March 31, 2015

(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

—

23,276

40,297

17,195

—

80,768

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

—

1,283,445

Obligations of states and political subdivisions

5,254

33,049

21,417

35,933

—

95,653

Corporate debt securities

82,193

62,312

33,658

4,927

—

183,090

Equity securities ⁽²⁾

—

11,308

Total available-for-sale securities

87,447

118,637

95,372

58,055

1,294,753

1,654,264

Held-to-maturity ⁽³⁾

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

—

129,971

Obligations of states and political subdivisions

2,852

17,024

259,231

356,824

—

635,931

Corporate debt securities

—

6,941

—

6,941

Total held-to-maturity securities

2,852

17,024

266,172

356,824

129,971

772,843

Total securities

90,299

135,661

361,544

414,879

1,424,724

2,427,107

⁽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 $743.9 million.

Securities with aggregate fair values of $1.1 billion and $706.5 million at March 31, 2015 and December 31, 2014, 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 $560.7 million, entirely due to the ESB portfolio restructuring, and $3.2 million for the three months ended March 31, 2015 and 2014, respectively. Net unrealized gains on available-for-sale securities included in accumulated other comprehensive income net of tax, as of March 31, 2015 and December 31, 2014 were $7.7 million and $2.9 million, respectively.

The following table presents the gross realized gains and losses on sales and calls of securities for the three months ended March 31, 2015 and 2014, respectively.


	For the Three Months Ended March 31,
*(unaudited, in thousands)*	2015			2014
Gross realized gains	$	24		$	195
Gross realized losses		(2	)		(185	)

Net realized gains (losses)	$	22		$	10

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 March 31, 2015 and December 31, 2014:


	March 31, 2015
	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
Obligations of government agencies		17,953		(33	)		3		—		—			0		17,953		(33	)		3
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		260,103		(681	)		55		168,693		(3,523	)		32		428,796		(4,204	)		87
Obligations of states and political subdivisions		68,439		(450	)		79		20,777		(445	)		31		89,216		(895	)		110
Corporate debt securities		53,122		(113	)		16		1,978		(8	)		1		55,100		(121	)		17

Total temporarily impaired securities		399,617		(1,277	)		153		191,448		(3,976	)		64		591,065		(5,253	)		217


	December 31, 2014
	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
Obligations of government agencies	$	19,362	$	(77	)		5	$	19,757	$	(238	)		4	$	39,119	$	(315	)		9
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		78,786		(386	)		19		240,055		(6,618	)		43		318,841		(7,004	)		62
Obligations of states and political subdivisions		12,615		(96	)		15		61,548		(952	)		93		74,163		(1,048	)		108
Corporate debt securities		2,969		(31	)		1		4,573		(137	)		2		7,542		(168	)		3

Total temporarily impaired securities	$	113,732	$	(590	)		40	$	325,933	$	(7,945	)		142	$	439,665	$	(8,535	)		182

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, 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 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 FHLB of Pittsburgh and FHLB of Cincinnati stock totaling $20.9 million and $11.6 million at March 31, 2015 and December 31, 2014, 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.