Loans and the Allowance for Credit Losses |
NOTE 5. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES
The recorded investment in loans is presented in the Consolidated
Balance Sheets net of deferred loan fees and costs of $0.6 million
and $1.0 million at June 30, 2016 and December 31, 2015,
respectively and discounts on purchased loans from prior
transactions of $14.4 million and $15.7 million at June 30, 2016
and December 31, 2015, respectively.
|
|
|
|
|
|
|
|
|
(unaudited, in thousands)
|
|
June 30, 2016 |
|
|
December 31,
2015 |
|
Commercial real estate: |
|
|
|
|
|
|
Land and construction
|
|
$ |
432,663 |
|
|
$ |
344,748 |
|
Improved property
|
|
|
1,850,535 |
|
|
|
1,911,633 |
|
|
|
|
|
|
|
|
|
|
Total commercial real estate
|
|
|
2,283,198 |
|
|
|
2,256,381 |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
814,055 |
|
|
|
737,878 |
|
Residential real estate
|
|
|
1,242,015 |
|
|
|
1,247,800 |
|
Home equity
|
|
|
435,187 |
|
|
|
416,889 |
|
Consumer
|
|
|
395,377 |
|
|
|
406,894 |
|
|
|
|
|
|
|
|
|
|
Total portfolio loans
|
|
|
5,169,832 |
|
|
|
5,065,842 |
|
|
|
|
|
|
|
|
|
|
Loans held for sale
|
|
|
9,974 |
|
|
|
7,899 |
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$ |
5,179,806 |
|
|
$ |
5,073,741 |
|
|
|
|
|
|
|
|
|
|
The following tables summarize changes in the allowance for credit
losses applicable to each category of the loan portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses By
Category
For the Six Months Ended June 30, 2016 and 2015 |
|
(unaudited, in thousands)
|
|
Commercial
Real Estate-
Land and
Construction |
|
|
Commercial
Real Estate-
Improved
Property |
|
|
Commercial
& Industrial |
|
|
Residential
Real Estate |
|
|
Home
Equity |
|
|
Consumer |
|
|
Deposit
Overdraft |
|
|
Total |
|
Balance at December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
$ |
4,390 |
|
|
$ |
14,748 |
|
|
$ |
10,002 |
|
|
$ |
4,582 |
|
|
$ |
2,883 |
|
|
$ |
4,763 |
|
|
$ |
342 |
|
|
$ |
41,710 |
|
Allowance for loan commitments
|
|
|
157 |
|
|
|
26 |
|
|
|
260 |
|
|
|
7 |
|
|
|
117 |
|
|
|
46 |
|
|
|
— |
|
|
|
613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total beginning allowance for credit losses
|
|
|
4,547 |
|
|
|
14,774 |
|
|
|
10,262 |
|
|
|
4,589 |
|
|
|
3,000 |
|
|
|
4,809 |
|
|
|
342 |
|
|
|
42,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
|
1,252 |
|
|
|
(559 |
) |
|
|
1,999 |
|
|
|
(172 |
) |
|
|
164 |
|
|
|
898 |
|
|
|
581 |
|
|
|
4,163 |
|
Provision for loan commitments
|
|
|
(10 |
) |
|
|
(13 |
) |
|
|
(16 |
) |
|
|
1 |
|
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
(28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total provision for credit losses
|
|
|
1,242 |
|
|
|
(572 |
) |
|
|
1,983 |
|
|
|
(171 |
) |
|
|
174 |
|
|
|
898 |
|
|
|
581 |
|
|
|
4,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
— |
|
|
|
(1,328 |
) |
|
|
(765 |
) |
|
|
(386 |
) |
|
|
(216 |
) |
|
|
(2,089 |
) |
|
|
(362 |
) |
|
|
(5,146 |
) |
Recoveries
|
|
|
3 |
|
|
|
1,168 |
|
|
|
139 |
|
|
|
306 |
|
|
|
77 |
|
|
|
790 |
|
|
|
118 |
|
|
|
2,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
|
|
3 |
|
|
|
(160 |
) |
|
|
(626 |
) |
|
|
(80 |
) |
|
|
(139 |
) |
|
|
(1,299 |
) |
|
|
(244 |
) |
|
|
(2,545 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
5,645 |
|
|
|
14,029 |
|
|
|
11,375 |
|
|
|
4,330 |
|
|
|
2,908 |
|
|
|
4,362 |
|
|
|
679 |
|
|
|
43,328 |
|
Allowance for loan commitments
|
|
|
147 |
|
|
|
13 |
|
|
|
244 |
|
|
|
8 |
|
|
|
127 |
|
|
|
46 |
|
|
|
— |
|
|
|
585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending allowance for credit losses
|
|
$ |
5,792 |
|
|
$ |
14,042 |
|
|
$ |
11,619 |
|
|
$ |
4,338 |
|
|
$ |
3,035 |
|
|
$ |
4,408 |
|
|
$ |
679 |
|
|
$ |
43,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
$ |
5,654 |
|
|
$ |
17,573 |
|
|
$ |
9,063 |
|
|
$ |
5,382 |
|
|
$ |
2,329 |
|
|
$ |
4,078 |
|
|
$ |
575 |
|
|
$ |
44,654 |
|
Allowance for loan commitments
|
|
|
194 |
|
|
|
10 |
|
|
|
112 |
|
|
|
9 |
|
|
|
90 |
|
|
|
40 |
|
|
|
— |
|
|
|
455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total beginning allowance for credit losses
|
|
|
5,848 |
|
|
|
17,583 |
|
|
|
9,175 |
|
|
|
5,391 |
|
|
|
2,419 |
|
|
|
4,118 |
|
|
|
575 |
|
|
|
45,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
|
(551 |
) |
|
|
633 |
|
|
|
1,448 |
|
|
|
25 |
|
|
|
1,254 |
|
|
|
580 |
|
|
|
231 |
|
|
|
3,620 |
|
Provision for loan commitments
|
|
|
13 |
|
|
|
10 |
|
|
|
301 |
|
|
|
3 |
|
|
|
23 |
|
|
|
— |
|
|
|
— |
|
|
|
350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total provision for credit losses
|
|
|
(538 |
) |
|
|
643 |
|
|
|
1,749 |
|
|
|
28 |
|
|
|
1,277 |
|
|
|
580 |
|
|
|
231 |
|
|
|
3,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
— |
|
|
|
(1,234 |
) |
|
|
(1,430 |
) |
|
|
(944 |
) |
|
|
(948 |
) |
|
|
(1,414 |
) |
|
|
(381 |
) |
|
|
(6,351 |
) |
Recoveries
|
|
|
— |
|
|
|
256 |
|
|
|
110 |
|
|
|
301 |
|
|
|
53 |
|
|
|
658 |
|
|
|
118 |
|
|
|
1,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
|
|
— |
|
|
|
(978 |
) |
|
|
(1,320 |
) |
|
|
(643 |
) |
|
|
(895 |
) |
|
|
(756 |
) |
|
|
(263 |
) |
|
|
(4,855 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
5,103 |
|
|
|
17,228 |
|
|
|
9,191 |
|
|
|
4,764 |
|
|
|
2,688 |
|
|
|
3,902 |
|
|
|
543 |
|
|
|
43,419 |
|
Allowance for loan commitments
|
|
|
207 |
|
|
|
20 |
|
|
|
413 |
|
|
|
12 |
|
|
|
113 |
|
|
|
40 |
|
|
|
— |
|
|
|
805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending allowance for credit losses
|
|
$ |
5,310 |
|
|
$ |
17,248 |
|
|
$ |
9,604 |
|
|
$ |
4,776 |
|
|
$ |
2,801 |
|
|
$ |
3,942 |
|
|
$ |
543 |
|
|
$ |
44,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables present the allowance for credit losses and
recorded investments in loans by category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses and
Recorded Investment in Loans |
|
|
|
Commercial |
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real
Estate- |
|
|
Real
Estate- |
|
|
Commercial |
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and |
|
|
Improved |
|
|
and |
|
|
Real |
|
|
Home |
|
|
|
|
|
|
|
|
|
|
(unaudited, in thousands)
|
|
Construction |
|
|
Property |
|
|
Industrial |
|
|
Estate |
|
|
Equity |
|
|
Consumer |
|
|
Over-draft |
|
|
Total |
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loans individually evaluated for impairment
|
|
$ |
— |
|
|
$ |
504 |
|
|
$ |
894 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,398 |
|
Allowance for loans collectively evaluated for impairment
|
|
|
5,645 |
|
|
|
13,525 |
|
|
|
10,481 |
|
|
|
4,330 |
|
|
|
2,908 |
|
|
|
4,362 |
|
|
|
679 |
|
|
|
41,930 |
|
Allowance for loan commitments
|
|
|
147 |
|
|
|
13 |
|
|
|
244 |
|
|
|
8 |
|
|
|
127 |
|
|
|
46 |
|
|
|
— |
|
|
|
585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses
|
|
$ |
5,792 |
|
|
$ |
14,042 |
|
|
$ |
11,619 |
|
|
$ |
4,338 |
|
|
$ |
3,035 |
|
|
$ |
4,408 |
|
|
$ |
679 |
|
|
$ |
43,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment (1)
|
|
$ |
— |
|
|
$ |
3,012 |
|
|
$ |
4,049 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,061 |
|
Collectively evaluated for impairment
|
|
|
432,663 |
|
|
|
1,840,005 |
|
|
|
810,006 |
|
|
|
1,242,015 |
|
|
|
435,187 |
|
|
|
395,377 |
|
|
|
— |
|
|
|
5,155,253 |
|
Acquired with deteriorated credit quality
|
|
|
— |
|
|
|
7,518 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans
|
|
$ |
432,663 |
|
|
$ |
1,850,535 |
|
|
$ |
814,055 |
|
|
$ |
1,242,015 |
|
|
$ |
435,187 |
|
|
$ |
395,377 |
|
|
$ |
— |
|
|
$ |
5,169,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loans individually evaluated for impairment
|
|
$ |
— |
|
|
$ |
668 |
|
|
$ |
853 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,521 |
|
Allowance for loans collectively evaluated for impairment
|
|
|
4,390 |
|
|
|
14,080 |
|
|
|
9,149 |
|
|
|
4,582 |
|
|
|
2,883 |
|
|
|
4,763 |
|
|
|
342 |
|
|
|
40,189 |
|
Allowance for loan commitments
|
|
|
157 |
|
|
|
26 |
|
|
|
260 |
|
|
|
7 |
|
|
|
117 |
|
|
|
46 |
|
|
|
— |
|
|
|
613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses
|
|
$ |
4,547 |
|
|
$ |
14,774 |
|
|
$ |
10,262 |
|
|
$ |
4,589 |
|
|
$ |
3,000 |
|
|
$ |
4,809 |
|
|
$ |
342 |
|
|
$ |
42,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment (1)
|
|
$ |
— |
|
|
$ |
4,031 |
|
|
$ |
4,872 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,903 |
|
Collectively evaluated for impairment
|
|
|
343,832 |
|
|
|
1,899,738 |
|
|
|
732,957 |
|
|
|
1,247,639 |
|
|
|
416,862 |
|
|
|
406,622 |
|
|
|
— |
|
|
|
5,047,650 |
|
Acquired with deteriorated credit quality
|
|
|
916 |
|
|
|
7,864 |
|
|
|
49 |
|
|
|
161 |
|
|
|
27 |
|
|
|
272 |
|
|
|
— |
|
|
|
9,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans
|
|
$ |
344,748 |
|
|
$ |
1,911,633 |
|
|
$ |
737,878 |
|
|
$ |
1,247,800 |
|
|
$ |
416,889 |
|
|
$ |
406,894 |
|
|
$ |
— |
|
|
$ |
5,065,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Commercial loans greater than $1
million that are reported as non-accrual or as a troubled debt
restructuring (“TDR”) are individually evaluated for
impairment. |
WesBanco maintains an internal loan grading system to reflect the
credit quality of commercial loans. Commercial loan risk
grades are determined based on an evaluation of the relevant
characteristics of each loan, assigned at the inception of each
loan and adjusted thereafter at any time to reflect changes in the
risk profile throughout the life of each loan. The primary
factors used to determine the risk grade are the reliability and
sustainability of the primary source of repayment and overall
financial strength of the borrower. This includes an analysis
of cash flow available to repay debt, profitability, liquidity,
leverage, and overall financial trends. Other factors include
management, industry or property type risks, an assessment of
secondary sources of repayment such as collateral or guarantees,
other terms and conditions of the loan that may increase or reduce
its risk, and economic conditions and other external factors that
may influence repayment capacity and financial condition.
Commercial real
estate – land and construction consists of loans to finance
investments in vacant land, land development, construction of
residential housing, and construction of commercial buildings.
Commercial real estate – improved property consists of loans
for the purchase or refinance of all types of improved
owner-occupied and investment properties. Factors that are
considered in assigning the risk grade vary depending on the type
of property financed. The risk grade assigned to construction and
development loans is based on the overall viability of the project,
the experience and financial capacity of the developer or builder
to successfully complete the project, project specific and market
absorption rates and comparable property values, and the amount of
pre-sales for residential housing construction or pre-leases for
commercial investment property. The risk grade assigned to
commercial investment property loans is based primarily on the
adequacy of net rental income generated by the property to service
the debt, the type, quality, industry and mix of tenants, and the
terms of leases, but also considers the overall financial capacity
of the investors and their experience in owning and managing
investment property. The risk grade assigned to owner-occupied
commercial real estate and commercial and industrial loans is based
primarily on historical and projected earnings, the adequacy of
operating cash flow to service all of the business’ debt, and
the capital resources, liquidity and leverage of the business, but
also considers the industry in which the business operates, the
business’ specific competitive advantages or disadvantages,
the quality and experience of management, and external influences
on the business such as economic conditions. Other factors that are
considered for commercial and industrial loans include the type,
quality and marketability of non-real estate collateral and whether
the structure of the loan increases or reduces its risk. The type,
age, condition, location and any environmental risks associated
with a property are also considered for all types of commercial
real estate. The overall financial condition and repayment
capacity of any guarantors is also evaluated to determine the
extent to which they mitigate other risks of the loan. The
following paragraphs provide descriptions of risk grades that are
applicable to commercial real estate and commercial and industrial
loans.
Pass loans are those that exhibit a history of positive financial
results that are at least comparable to the average for their
industry or type of real estate. The primary source of
repayment is acceptable and these loans are expected to perform
satisfactorily during most economic cycles. Pass loans
typically have no significant external factors that are expected to
adversely affect these borrowers more than others in the same
industry or property type. Any minor unfavorable
characteristics of these loans are outweighed or mitigated by other
positive factors including but not limited to adequate secondary or
tertiary sources of repayment.
Criticized or compromised loans are currently protected but have
weaknesses, which, if not corrected, may be inadequately protected
at some future date. These loans represent an unwarranted
credit risk and would generally not be extended in the normal
course of lending. Specific issues which may warrant this
grade include declining financial results, increased reliance on
secondary sources of repayment or guarantor support and adverse
external influences that may negatively impact the business or
property.
Substandard and doubtful loans are equivalent to the
classifications used by banking regulators. Substandard loans
are inadequately protected by the current repayment capacity and
equity of the borrower or collateral pledged, if
any. Substandard loans have one or more well-defined
weaknesses that jeopardize their repayment or collection in
full. These loans may or may not be reported as
non-accrual. Doubtful loans have all the weaknesses inherent
to a substandard loan with the added characteristic that full
repayment is highly questionable or improbable on the basis of
currently existing facts, conditions and collateral
values. However, recognition of loss may be deferred if there
are reasonably specific pending factors that will reduce the risk
if they occur.
The following tables summarize commercial loans by their assigned
risk grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans by
Internally Assigned Risk Grade |
|
|
|
Commercial |
|
|
Commercial |
|
|
|
|
|
|
|
|
|
Real Estate- |
|
|
Real Estate- |
|
|
|
|
|
Total |
|
|
|
Land and |
|
|
Improved |
|
|
Commercial |
|
|
Commercial |
|
(unaudited, in thousands)
|
|
Construction |
|
|
Property |
|
|
& Industrial |
|
|
Loans |
|
As of June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass
|
|
$ |
425,647 |
|
|
$ |
1,805,673 |
|
|
$ |
786,601 |
|
|
$ |
3,017,921 |
|
Criticized - compromised
|
|
|
5,007 |
|
|
|
11,998 |
|
|
|
9,538 |
|
|
|
26,543 |
|
Classified - substandard
|
|
|
2,009 |
|
|
|
32,864 |
|
|
|
17,916 |
|
|
|
52,789 |
|
Classified - doubtful
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
432,663 |
|
|
$ |
1,850,535 |
|
|
$ |
814,055 |
|
|
$ |
3,097,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass
|
|
$ |
335,989 |
|
|
$ |
1,864,986 |
|
|
$ |
713,578 |
|
|
$ |
2,914,553 |
|
Criticized - compromised
|
|
|
5,527 |
|
|
|
10,911 |
|
|
|
9,860 |
|
|
|
26,298 |
|
Classified - substandard
|
|
|
3,232 |
|
|
|
35,736 |
|
|
|
14,440 |
|
|
|
53,408 |
|
Classified - doubtful
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
344,748 |
|
|
$ |
1,911,633 |
|
|
$ |
737,878 |
|
|
$ |
2,994,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate, home equity and consumer loans are not
assigned internal risk grades other than as required by regulatory
guidelines that are based primarily on the age of past due
loans. WesBanco primarily evaluates the credit quality of
residential real estate, home equity and consumer loans based on
repayment performance and historical loss rates. The aggregate
amount of residential real estate, home equity and consumer loans
classified as substandard in accordance with regulatory guidelines
were $16.4 million at June 30, 2016 and $15.8 million at December
31, 2015, of which $2.2 and $3.1 million were accruing, for each
period, respectively. The aggregate amount of residential real
estate, home equity and consumer loans classified as substandard
are not included in the tables above.
Acquired Loans — Carrying amount of
loans acquired with deteriorated credit quality at June 30, 2016
and December 31, 2015 were $7.5 million and $9.3 million,
respectively, while the outstanding balance was $12.5 million and
$15.0 million, respectively. At June 30, 2016 and December 31,
2015 no allowance for loan losses has been recognized related to
the acquired impaired loans, as estimates of future cash flows on
these loans have not been negatively impacted.
The following table provides changes in accretable yield for loans
acquired with deteriorated credit quality:
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
(unaudited, in thousands)
|
|
2016 |
|
|
2015 |
|
Balance at beginning of period
|
|
$ |
1,206 |
|
|
$ |
— |
|
Acquisitions
|
|
|
— |
|
|
|
1,815 |
|
Reclass from non-accretable difference
|
|
|
1,064 |
|
|
|
— |
|
Transfers
|
|
|
(328 |
) |
|
|
— |
|
Accretion
|
|
|
(266 |
) |
|
|
(267 |
) |
|
|
|
|
|
|
|
|
|
Balance at end of period
|
|
$ |
1,676 |
|
|
$ |
1,548 |
|
|
|
|
|
|
|
|
|
|
The following tables summarize the age analysis of all categories
of loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Age Analysis of
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90 Days |
|
|
|
|
|
|
|
|
|
|
|
|
90 Days |
|
|
|
|
|
|
|
|
or More |
|
|
|
|
|
|
30-59 Days |
|
|
60-89 Days |
|
|
or More |
|
|
Total |
|
|
Total |
|
|
Past Due and |
|
(unaudited, in thousands)
|
|
Current |
|
|
Past Due |
|
|
Past Due |
|
|
Past Due |
|
|
Past Due |
|
|
Loans |
|
|
Accruing (1) |
|
As of June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
$ |
432,241 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
422 |
|
|
$ |
422 |
|
|
$ |
432,663 |
|
|
$ |
— |
|
Improved property
|
|
|
1,840,665 |
|
|
|
1,616 |
|
|
|
592 |
|
|
|
7,662 |
|
|
|
9,870 |
|
|
|
1,850,535 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate
|
|
|
2,272,906 |
|
|
|
1,616 |
|
|
|
592 |
|
|
|
8,084 |
|
|
|
10,292 |
|
|
|
2,283,198 |
|
|
|
— |
|
Commercial and industrial
|
|
|
811,320 |
|
|
|
251 |
|
|
|
743 |
|
|
|
1,741 |
|
|
|
2,735 |
|
|
|
814,055 |
|
|
|
56 |
|
Residential real estate
|
|
|
1,229,843 |
|
|
|
1,153 |
|
|
|
3,319 |
|
|
|
7,700 |
|
|
|
12,172 |
|
|
|
1,242,015 |
|
|
|
1,261 |
|
Home equity
|
|
|
431,147 |
|
|
|
1,276 |
|
|
|
373 |
|
|
|
2,391 |
|
|
|
4,040 |
|
|
|
435,187 |
|
|
|
378 |
|
Consumer
|
|
|
391,096 |
|
|
|
2,665 |
|
|
|
803 |
|
|
|
813 |
|
|
|
4,281 |
|
|
|
395,377 |
|
|
|
568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans
|
|
|
5,136,312 |
|
|
|
6,961 |
|
|
|
5,830 |
|
|
|
20,729 |
|
|
|
33,520 |
|
|
|
5,169,832 |
|
|
|
2,263 |
|
Loans held for sale
|
|
|
9,974 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,974 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$ |
5,146,286 |
|
|
$ |
6,961 |
|
|
$ |
5,830 |
|
|
$ |
20,729 |
|
|
$ |
33,520 |
|
|
$ |
5,179,806 |
|
|
$ |
2,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans included above are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans
|
|
$ |
12,374 |
|
|
$ |
1,261 |
|
|
$ |
763 |
|
|
$ |
18,057 |
|
|
$ |
20,081 |
|
|
$ |
32,455 |
|
|
|
|
|
TDRs accruing interest (1)
|
|
|
8,195 |
|
|
|
204 |
|
|
|
171 |
|
|
|
409 |
|
|
|
784 |
|
|
|
8,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired
|
|
$ |
20,569 |
|
|
$ |
1,465 |
|
|
$ |
934 |
|
|
$ |
18,466 |
|
|
$ |
20,865 |
|
|
$ |
41,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
$ |
344,184 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
564 |
|
|
$ |
564 |
|
|
$ |
344,748 |
|
|
$ |
— |
|
Improved property
|
|
|
1,901,466 |
|
|
|
909 |
|
|
|
1,097 |
|
|
|
8,161 |
|
|
|
10,167 |
|
|
|
1,911,633 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate
|
|
|
2,245,650 |
|
|
|
909 |
|
|
|
1,097 |
|
|
|
8,725 |
|
|
|
10,731 |
|
|
|
2,256,381 |
|
|
|
— |
|
Commercial and industrial
|
|
|
734,660 |
|
|
|
298 |
|
|
|
714 |
|
|
|
2,206 |
|
|
|
3,218 |
|
|
|
737,878 |
|
|
|
33 |
|
Residential real estate
|
|
|
1,234,839 |
|
|
|
1,389 |
|
|
|
2,871 |
|
|
|
8,701 |
|
|
|
12,961 |
|
|
|
1,247,800 |
|
|
|
2,159 |
|
Home equity
|
|
|
412,450 |
|
|
|
2,252 |
|
|
|
314 |
|
|
|
1,873 |
|
|
|
4,439 |
|
|
|
416,889 |
|
|
|
407 |
|
Consumer
|
|
|
401,242 |
|
|
|
4,115 |
|
|
|
764 |
|
|
|
773 |
|
|
|
5,652 |
|
|
|
406,894 |
|
|
|
527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans
|
|
|
5,028,841 |
|
|
|
8,963 |
|
|
|
5,760 |
|
|
|
22,278 |
|
|
|
37,001 |
|
|
|
5,065,842 |
|
|
|
3,126 |
|
Loans held for sale
|
|
|
7,899 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,899 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$ |
5,036,740 |
|
|
$ |
8,963 |
|
|
$ |
5,760 |
|
|
$ |
22,278 |
|
|
$ |
37,001 |
|
|
$ |
5,073,741 |
|
|
$ |
3,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans included above are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans
|
|
$ |
11,349 |
|
|
$ |
943 |
|
|
$ |
2,147 |
|
|
$ |
18,942 |
|
|
$ |
22,032 |
|
|
$ |
33,381 |
|
|
|
|
|
TDRs accruing interest (1)
|
|
|
10,710 |
|
|
|
390 |
|
|
|
238 |
|
|
|
210 |
|
|
|
838 |
|
|
|
11,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired
|
|
$ |
22,059 |
|
|
$ |
1,333 |
|
|
$ |
2,385 |
|
|
$ |
19,152 |
|
|
$ |
22,870 |
|
|
$ |
44,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Loans 90 days or more past due and
accruing interest exclude TDRs 90 days or more past due and
accruing interest. |
The following tables summarize impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired Loans |
|
|
|
June 30, 2016 |
|
|
December 31, 2015 |
|
(unaudited, in thousands)
|
|
Unpaid
Principal
Balance (1) |
|
|
Recorded
Investment |
|
|
Related
Allowance |
|
|
Unpaid
Principal
Balance (1) |
|
|
Recorded
Investment |
|
|
Related
Allowance |
|
With no related specific allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
$ |
905 |
|
|
$ |
801 |
|
|
$ |
— |
|
|
$ |
2,126 |
|
|
$ |
1,990 |
|
|
$ |
— |
|
Improved property
|
|
|
12,762 |
|
|
|
9,360 |
|
|
|
— |
|
|
|
14,817 |
|
|
|
10,559 |
|
|
|
— |
|
Commercial and industrial
|
|
|
6,113 |
|
|
|
3,339 |
|
|
|
— |
|
|
|
4,263 |
|
|
|
3,481 |
|
|
|
— |
|
Residential real estate
|
|
|
18,328 |
|
|
|
16,491 |
|
|
|
— |
|
|
|
18,560 |
|
|
|
16,688 |
|
|
|
— |
|
Home equity
|
|
|
4,092 |
|
|
|
3,574 |
|
|
|
— |
|
|
|
3,562 |
|
|
|
3,033 |
|
|
|
— |
|
Consumer
|
|
|
964 |
|
|
|
808 |
|
|
|
— |
|
|
|
1,603 |
|
|
|
1,294 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans without a specific allowance
|
|
|
43,164 |
|
|
|
34,373 |
|
|
|
— |
|
|
|
44,931 |
|
|
|
37,045 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With a specific allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Improved property
|
|
|
3,012 |
|
|
|
3,012 |
|
|
|
504 |
|
|
|
3,012 |
|
|
|
3,012 |
|
|
|
668 |
|
Commercial and industrial
|
|
|
5,853 |
|
|
|
4,049 |
|
|
|
894 |
|
|
|
6,176 |
|
|
|
4,872 |
|
|
|
853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans with a specific allowance
|
|
|
8,865 |
|
|
|
7,061 |
|
|
|
1,398 |
|
|
|
9,188 |
|
|
|
7,884 |
|
|
|
1,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans
|
|
$ |
52,029 |
|
|
$ |
41,434 |
|
|
$ |
1,398 |
|
|
$ |
54,119 |
|
|
$ |
44,929 |
|
|
$ |
1,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The difference between the unpaid
principal balance and the recorded investment generally reflects
amounts that have been previously charged-off and fair market value
adjustments on acquired impaired loans. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired Loans |
|
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30, 2016 |
|
|
June 30, 2015 |
|
|
June 30, 2016 |
|
|
June 30, 2015 |
|
(unaudited, in thousands)
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
With no related specific allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
$ |
840 |
|
|
$ |
8 |
|
|
$ |
2,493 |
|
|
$ |
2 |
|
|
$ |
1,223 |
|
|
$ |
14 |
|
|
$ |
2,158 |
|
|
$ |
18 |
|
Improved Property
|
|
|
9,846 |
|
|
|
96 |
|
|
|
21,741 |
|
|
|
240 |
|
|
|
10,084 |
|
|
|
180 |
|
|
|
19,389 |
|
|
|
463 |
|
Commercial and industrial
|
|
|
3,303 |
|
|
|
52 |
|
|
|
2,947 |
|
|
|
49 |
|
|
|
3,362 |
|
|
|
93 |
|
|
|
2,830 |
|
|
|
62 |
|
Residential real estate
|
|
|
16,830 |
|
|
|
194 |
|
|
|
18,550 |
|
|
|
235 |
|
|
|
16,783 |
|
|
|
433 |
|
|
|
18,548 |
|
|
|
465 |
|
Home equity
|
|
|
3,428 |
|
|
|
28 |
|
|
|
2,806 |
|
|
|
21 |
|
|
|
3,296 |
|
|
|
52 |
|
|
|
2,758 |
|
|
|
41 |
|
Consumer
|
|
|
853 |
|
|
|
17 |
|
|
|
1,261 |
|
|
|
26 |
|
|
|
1,000 |
|
|
|
35 |
|
|
|
1,202 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans without a specific allowance
|
|
|
35,100 |
|
|
|
395 |
|
|
|
49,798 |
|
|
|
573 |
|
|
|
35,748 |
|
|
|
807 |
|
|
|
46,885 |
|
|
|
1,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With a specific allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Improved Property
|
|
|
3,012 |
|
|
|
— |
|
|
|
6,989 |
|
|
|
56 |
|
|
|
3,012 |
|
|
|
— |
|
|
|
7,319 |
|
|
|
56 |
|
Commercial and industrial
|
|
|
4,312 |
|
|
|
26 |
|
|
|
3,149 |
|
|
|
118 |
|
|
|
4,498 |
|
|
|
58 |
|
|
|
2,713 |
|
|
|
137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans with a specific allowance
|
|
|
7,324 |
|
|
|
26 |
|
|
|
10,138 |
|
|
|
174 |
|
|
|
7,510 |
|
|
|
58 |
|
|
|
10,032 |
|
|
|
193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans
|
|
$ |
42,424 |
|
|
$ |
421 |
|
|
$ |
59,936 |
|
|
$ |
747 |
|
|
$ |
43,258 |
|
|
$ |
865 |
|
|
$ |
56,917 |
|
|
$ |
1,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables present the recorded investment in non-accrual
loans and TDRs:
|
|
|
|
|
|
|
|
|
|
|
Non-accrual Loans (1) |
|
(unaudited, in thousands)
|
|
June 30,
2016 |
|
|
December 31,
2015 |
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
Land and construction
|
|
$ |
801 |
|
|
$ |
1,023 |
|
Improved property
|
|
|
10,661 |
|
|
|
11,507 |
|
|
|
|
|
|
|
|
|
|
Total commercial real estate
|
|
|
11,462 |
|
|
|
12,530 |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
7,250 |
|
|
|
8,148 |
|
Residential real estate
|
|
|
10,071 |
|
|
|
9,461 |
|
Home equity
|
|
|
3,017 |
|
|
|
2,391 |
|
Consumer
|
|
|
655 |
|
|
|
851 |
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
32,455 |
|
|
$ |
33,381 |
|
|
|
|
|
|
|
|
|
|
(1) |
At June 30, 2016, there were two
borrowers with loans greater than $1.0 million and three at
December 31, 2015. Total non-accrual loans include loans that
are also restructured. Such loans are also set forth in the
following table as non-accrual TDRs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TDRs |
|
|
|
June 30, 2016 |
|
|
December 31, 2015 |
|
(unaudited, in thousands)
|
|
Accruing |
|
|
Non-Accrual |
|
|
Total |
|
|
Accruing |
|
|
Non-Accrual |
|
|
Total |
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
$ |
— |
|
|
$ |
361 |
|
|
$ |
361 |
|
|
$ |
967 |
|
|
$ |
431 |
|
|
$ |
1,398 |
|
Improved property
|
|
|
1,711 |
|
|
|
952 |
|
|
|
2,663 |
|
|
|
2,064 |
|
|
|
1,442 |
|
|
|
3,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate
|
|
|
1,711 |
|
|
|
1,313 |
|
|
|
3,024 |
|
|
|
3,031 |
|
|
|
1,873 |
|
|
|
4,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
138 |
|
|
|
245 |
|
|
|
383 |
|
|
|
205 |
|
|
|
282 |
|
|
|
487 |
|
Residential real estate
|
|
|
6,420 |
|
|
|
2,115 |
|
|
|
8,535 |
|
|
|
7,227 |
|
|
|
2,060 |
|
|
|
9,287 |
|
Home equity
|
|
|
557 |
|
|
|
276 |
|
|
|
833 |
|
|
|
642 |
|
|
|
218 |
|
|
|
860 |
|
Consumer
|
|
|
153 |
|
|
|
172 |
|
|
|
325 |
|
|
|
443 |
|
|
|
184 |
|
|
|
627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
8,979 |
|
|
$ |
4,121 |
|
|
$ |
13,100 |
|
|
$ |
11,548 |
|
|
$ |
4,617 |
|
|
$ |
16,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2016, there were no TDRs greater than $1.0
million. The concessions granted in the majority of loans
reported as accruing and non-accrual TDRs are extensions of the
maturity date or the amortization period, reductions in the
interest rate below the prevailing market rate for loans with
comparable characteristics, and/or permitting interest-only
payments for longer than three months. WesBanco had no
unfunded commitments to debtors whose loans were classified as
impaired as of June 30, 2016 and $0.2 million as of December 31,
2015.
The following tables present details related to loans identified as
TDRs during the three and six months ended June 30, 2016 and 2015,
respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
TDRs (1) |
|
|
|
For the Three Months Ended |
|
|
|
June 30, 2016 |
|
|
June 30, 2015 |
|
(unaudited, dollars in thousands)
|
|
Number of
Modifications |
|
|
Pre-
Modification
Outstanding
Recorded
Investment |
|
|
Post-
Modification
Outstanding
Recorded
Investment |
|
|
Number of
Modifications |
|
|
Pre-
Modification
Outstanding
Recorded
Investment |
|
|
Post-
Modification
Outstanding
Recorded
Investment |
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
Improved Property
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential real estate
|
|
|
1 |
|
|
|
23 |
|
|
|
22 |
|
|
|
1 |
|
|
|
41 |
|
|
|
39 |
|
Home equity
|
|
|
1 |
|
|
|
43 |
|
|
|
42 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer
|
|
|
6 |
|
|
|
38 |
|
|
|
34 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
8 |
|
|
$ |
104 |
|
|
$ |
98 |
|
|
|
1 |
|
|
$ |
41 |
|
|
$ |
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Excludes loans that were either paid
off or charged-off by period end. The pre-modification balance
represents the balance outstanding at the beginning of the
period. The post-modification balance represents the
outstanding balance at period end. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
TDRs (1) |
|
|
|
For the Six Months Ended |
|
|
|
June 30, 2016 |
|
|
June 30, 2015 |
|
|
|
|
|
|
Pre- |
|
|
Post- |
|
|
|
|
|
Pre- |
|
|
Post- |
|
|
|
|
|
|
Modification |
|
|
Modification |
|
|
|
|
|
Modification |
|
|
Modification |
|
|
|
|
|
|
Outstanding |
|
|
Outstanding |
|
|
|
|
|
Outstanding |
|
|
Outstanding |
|
|
|
Number
of |
|
|
Recorded |
|
|
Recorded |
|
|
Number
of |
|
|
Recorded |
|
|
Recorded |
|
(unaudited, dollars in thousands)
|
|
Modifications |
|
|
Investment |
|
|
Investment |
|
|
Modifications |
|
|
Investment |
|
|
Investment |
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
2 |
|
|
$ |
115 |
|
|
$ |
110 |
|
Improved Property
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
835 |
|
|
|
581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
950 |
|
|
|
691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential real estate
|
|
|
1 |
|
|
|
23 |
|
|
|
22 |
|
|
|
7 |
|
|
|
454 |
|
|
|
443 |
|
Home equity
|
|
|
1 |
|
|
|
44 |
|
|
|
42 |
|
|
|
1 |
|
|
|
7 |
|
|
|
6 |
|
Consumer
|
|
|
6 |
|
|
|
41 |
|
|
|
34 |
|
|
|
2 |
|
|
|
19 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
8 |
|
|
$ |
108 |
|
|
$ |
98 |
|
|
|
14 |
|
|
$ |
1,430 |
|
|
$ |
1,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Excludes loans that were either paid
off or charged-off by period end. The pre-modification balance
represents the balance outstanding at the beginning of the
period. The post-modification balance represents the
outstanding balance at period end. |
The following table summarizes TDRs which defaulted (defined as
past due 90 days) during the six months ended June 30, 2016 and
2015, respectively, that were restructured within the last twelve
months prior to June 30, 2016 and 2015, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defaulted
TDRs (1) |
|
|
|
For the Six
Months Ended |
|
|
|
June 30, 2016 |
|
|
June 30, 2015 |
|
|
|
Number of |
|
|
Recorded |
|
|
Number of |
|
|
Recorded |
|
(unaudited, dollars in thousands)
|
|
Defaults |
|
|
Investment |
|
|
Defaults |
|
|
Investment |
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and construction
|
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
Improved property
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
1 |
|
|
|
40 |
|
|
|
— |
|
|
|
— |
|
Residential real estate
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Home equity
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
42 |
|
Consumer
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1 |
|
|
$ |
40 |
|
|
|
1 |
|
|
$ |
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Excludes loans that were either
charged-off or cured by period end. The recorded investment is
as of June 30, 2016 and 2015, respectively. |
TDRs that default are placed on non-accrual status unless they are
both well-secured and in the process of collection. None of
the loans in the table above were accruing interest.
The following table summarizes other real estate owned and
repossessed assets included in other assets:
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
(unaudited, in thousands)
|
|
2016 |
|
|
2015 |
|
Other real estate owned
|
|
$ |
4,361 |
|
|
$ |
5,669 |
|
Repossessed assets
|
|
|
120 |
|
|
|
156 |
|
|
|
|
|
|
|
|
|
|
Total other real estate owned and repossessed assets
|
|
$ |
4,481 |
|
|
$ |
5,825 |
|
|
|
|
|
|
|
|
|
|
Residential real estate included in other real estate owned at June
30, 2016 and December 31, 2015 was $0.8 million and $2.0 million,
respectively. At June 30, 2016 and December 31, 2015, formal
foreclosure proceedings were in process on residential real estate
loans totaling $3.4 million and $4.1 million, respectively.
|