Investments in Limited Partnerships

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Investments in Limited Partnerships

NOTE 8. INVESTMENTS IN LIMITED PARTNERSHIPS

WesBanco is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved low-income housing investment tax credit projects. These investments are accounted for using the equity method of accounting and are included in other assets in the Consolidated Balance Sheets. The limited partnerships are considered to be VIEs as they generally do not have equity investors with voting rights or have equity investors that do not provide sufficient financial resources to support their activities. The VIEs have not been consolidated because WesBanco is not considered the primary beneficiary. All of WesBanco’s investments in limited partnerships are privately held, and their market values are not readily available. Investments in low-income housing partnerships are evaluated for impairment at the end of each reporting period. At December 31, 2016 and 2015, WesBanco had $14.3 million and $3.1 million, respectively, invested in these partnerships. WesBanco also recognizes the unconditional unfunded equity commitments of $8.2 million and $2.1 million at December 31, 2016 and 2015, respectively, in other liabilities. For the years ended December 31, 2016, 2015 and 2014, WesBanco included in operations under the equity method of accounting its share of the partnerships’ losses and impairment of $0.9 million, $0.6 million, and $0.9 million, respectively. Tax benefits attributed to these partnerships include low-income housing and historic tax credits which totaled $0.8 million, $0.5 million and $0.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.

WesBanco is also a limited partner in seven other limited partnerships which provide seed money and capital to startup companies, and financing to low-income housing projects. At December 31, 2016 and 2015, WesBanco had $5.2 million invested in these partnerships, which are recorded in other assets using the equity method. WesBanco included in operations under the equity method of accounting its share of the partnerships’ net income of $19 thousand, net loss of $1 thousand and net income $0.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.

In connection with WesBanco’s acquisition of ESB on February 10, 2015, WesBanco acquired ESB’s wholly-owned subsidiary AMSCO, Inc. (“AMSCO”), which engages in the management of certain real estate development and construction of 1-4 family residential units through seven joint venture partnerships. The Bank has provided all development and construction financing. The joint ventures, which are majority-owned by AMSCO, have been included in the consolidated financial statements and are reflected within other non-interest income or expense. At December 31, 2016 and 2015, respectively, WesBanco had an $8.3 million and $7.7 million net investment in AMSCO. WesBanco included in operations net income of $0.5 million and $0.3 million for the years ended December 31, 2016 and 2015, respectively. WesBanco is in the process of winding down these partnerships, which is expected to be relatively complete by December 31, 2017.