| Securities |
NOTE 4. SECURITIES
The following table presents the fair value and amortized cost of
available-for-sale and
held-to-maturity debt
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, 2018 |
|
|
December 31, 2017 |
|
|
(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 debt
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
9,926 |
|
|
$ |
— |
|
|
$ |
(13 |
) |
|
$ |
9,913 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
U.S. Government sponsored entities and agencies
|
|
|
103,152 |
|
|
|
— |
|
|
|
(2,470 |
) |
|
|
100,682 |
|
|
|
72,425 |
|
|
|
24 |
|
|
|
(606 |
) |
|
|
71,843 |
|
|
Residential mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
|
|
|
1,413,937 |
|
|
|
98 |
|
|
|
(40,618 |
) |
|
|
1,373,417 |
|
|
|
954,115 |
|
|
|
214 |
|
|
|
(19,407 |
) |
|
|
934,922 |
|
|
Commerical mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
|
|
|
145,104 |
|
|
|
55 |
|
|
|
(4,512 |
) |
|
|
140,647 |
|
|
|
116,448 |
|
|
|
4 |
|
|
|
(1,585 |
) |
|
|
114,867 |
|
|
Obligations of states and political subdivisions
|
|
|
126,143 |
|
|
|
1,866 |
|
|
|
(1,210 |
) |
|
|
126,799 |
|
|
|
102,363 |
|
|
|
2,927 |
|
|
|
(460 |
) |
|
|
104,830 |
|
|
Corporate debt securities
|
|
|
45,070 |
|
|
|
211 |
|
|
|
(168 |
) |
|
|
45,113 |
|
|
|
35,234 |
|
|
|
228 |
|
|
|
(59 |
) |
|
|
35,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available-for-sale debt
securities
|
|
$ |
1,843,332 |
|
|
$ |
2,230 |
|
|
$ |
(48,991 |
) |
|
$ |
1,796,571 |
|
|
$ |
1,280,585 |
|
|
$ |
3,397 |
|
|
$ |
(22,117 |
) |
|
$ |
1,261,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity debt
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government sponsored entities and agencies
|
|
$ |
11,877 |
|
|
$ |
— |
|
|
$ |
(390 |
) |
|
$ |
11,487 |
|
|
$ |
11,465 |
|
|
$ |
— |
|
|
$ |
(325 |
) |
|
$ |
11,140 |
|
|
Residential mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
|
|
|
161,090 |
|
|
|
203 |
|
|
|
(5,740 |
) |
|
|
155,553 |
|
|
|
170,025 |
|
|
|
544 |
|
|
|
(2,609 |
) |
|
|
167,960 |
|
|
Obligations of states and political subdivisions
|
|
|
813,456 |
|
|
|
9,017 |
|
|
|
(6,065 |
) |
|
|
816,408 |
|
|
|
794,655 |
|
|
|
17,364 |
|
|
|
(1,609 |
) |
|
|
810,410 |
|
|
Corporate debt securities
|
|
|
33,323 |
|
|
|
4 |
|
|
|
(664 |
) |
|
|
32,663 |
|
|
|
33,355 |
|
|
|
919 |
|
|
|
— |
|
|
|
34,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held-to-maturity debt
securities
|
|
$ |
1,019,746 |
|
|
$ |
9,224 |
|
|
$ |
(12,859 |
) |
|
$ |
1,016,111 |
|
|
$ |
1,009,500 |
|
|
$ |
18,827 |
|
|
$ |
(4,543 |
) |
|
$ |
1,023,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities
|
|
$ |
2,863,078 |
|
|
$ |
11,454 |
|
|
$ |
(61,850 |
) |
|
$ |
2,812,682 |
|
|
$ |
2,290,085 |
|
|
$ |
22,224 |
|
|
$ |
(26,660 |
) |
|
$ |
2,285,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2018, and December 31, 2017, there were no
holdings of any one issuer, other than U.S. government sponsored
entities and its agencies, in an amount greater than 10% of
WesBanco’s shareholders’ equity.
Equity securities, of which $8.3 million consist of
investments in various mutual funds held in grantor trusts formed
in connection with the Company’s deferred compensation plan,
are recorded at fair value and totaled $13.5 million at
June 30, 2018 and December 31, 2017.
The following table presents the fair value of available-for-sale and
held-to-maturity debt
securities by contractual maturity at June 30, 2018. In some
instances, the issuers may have the right to call or prepay
obligations without penalty prior to the contractual maturity
date.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, 2018 |
|
|
(unaudited, in thousands)
|
|
One Year
or less |
|
|
One to
Five Years |
|
|
Five to
Ten Years |
|
|
After
Ten Years |
|
|
Mortgage-backed
securities |
|
|
Total |
|
|
Available-for-sale debt
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
9,913 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,913 |
|
|
U.S. Government sponsored entities and agencies
|
|
|
10,459 |
|
|
|
6,302 |
|
|
|
13,739 |
|
|
|
6,802 |
|
|
|
63,380 |
|
|
|
100,682 |
|
|
Residential mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
(1)
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,373,417 |
|
|
|
1,373,417 |
|
|
Commercial mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
(1)
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
140,647 |
|
|
|
140,647 |
|
|
Obligations of states and political subdivisions
|
|
|
9,629 |
|
|
|
23,831 |
|
|
|
51,042 |
|
|
|
42,297 |
|
|
|
— |
|
|
|
126,799 |
|
|
Corporate debt securities
|
|
|
9,801 |
|
|
|
33,364 |
|
|
|
1,948 |
|
|
|
— |
|
|
|
— |
|
|
|
45,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available-for-sale debt
securities
|
|
$ |
39,802 |
|
|
$ |
63,497 |
|
|
$ |
66,729 |
|
|
$ |
49,099 |
|
|
$ |
1,577,444 |
|
|
$ |
1,796,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity debt
securities (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government sponsored entities and agencies
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,487 |
|
|
$ |
11,487 |
|
|
Residential mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
(1)
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
155,553 |
|
|
|
155,553 |
|
|
Obligations of states and political subdivisions
|
|
|
6,410 |
|
|
|
123,247 |
|
|
|
393,073 |
|
|
|
293,678 |
|
|
|
|
|
|
|
816,408 |
|
|
Corporate debt securities
|
|
|
— |
|
|
|
7,448 |
|
|
|
25,215 |
|
|
|
— |
|
|
|
— |
|
|
|
32,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held-to-maturity debt
securities
|
|
$ |
6,410 |
|
|
$ |
130,695 |
|
|
$ |
418,288 |
|
|
$ |
293,678 |
|
|
$ |
167,040 |
|
|
$ |
1,016,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities
|
|
$ |
46,212 |
|
|
$ |
194,192 |
|
|
$ |
485,017 |
|
|
$ |
342,777 |
|
|
$ |
1,744,484 |
|
|
$ |
2,812,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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) |
The held-to-maturity debt
securities portfolio is carried at an amortized cost of
$1.0 billion.
|
Securities with aggregate fair values of $1.6 billion and
$1.4 billion at June 30, 2018 and December 31, 2017,
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 $81.5 million and $7.8 million for the six months
ended June 30, 2018 and 2017, respectively. Net unrealized
losses on available-for-sale securities
included in accumulated other comprehensive income net of tax, as
of June 30, 2018 and December 31, 2017 were
$36.0 million and $13.3 million, respectively.
The following table presents the gross realized gains and losses on
sales and calls of available-for-sale and
held-to-maturity debt
securities, as well as gains and losses on equity securities for
the three and six months ended June 30, 2018 and 2017,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the Three Months Ended
June 30, |
|
|
For the Six Months Ended
June 30, |
|
|
(unaudited, in thousands)
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross realized gains
|
|
$ |
5 |
|
|
$ |
562 |
|
|
$ |
12 |
|
|
$ |
574 |
|
|
Gross realized losses
|
|
|
— |
|
|
|
(68 |
) |
|
|
(18 |
) |
|
|
(68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on debt securities
|
|
$ |
5 |
|
|
$ |
494 |
|
|
$ |
(6 |
) |
|
$ |
506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains recognized on securities still held
|
|
$ |
347 |
|
|
$ |
— |
|
|
$ |
319 |
|
|
$ |
— |
|
|
Net realized gains recognized on securities sold
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains on equity securities
|
|
$ |
353 |
|
|
$ |
— |
|
|
$ |
325 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net securities gains
|
|
$ |
358 |
|
|
$ |
494 |
|
|
$ |
319 |
|
|
$ |
506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables provide information on unrealized losses on
debt securities that have been in an unrealized loss position for
less than twelve months and twelve months or more as of
June 30, 2018 and December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, 2018 |
|
| |
|
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 |
|
|
U.S. Treasury
|
|
$ |
9,913 |
|
|
$ |
(13 |
) |
|
|
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
9,913 |
|
|
$ |
(13 |
) |
|
|
1 |
|
|
U.S. Government sponsored entities and agencies
|
|
|
71,179 |
|
|
|
(1,885 |
) |
|
|
23 |
|
|
|
40,491 |
|
|
|
(975 |
) |
|
|
8 |
|
|
|
111,670 |
|
|
|
(2,860 |
) |
|
|
31 |
|
|
Residential mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
|
|
|
864,036 |
|
|
|
(16,625 |
) |
|
|
160 |
|
|
|
610,641 |
|
|
|
(29,733 |
) |
|
|
201 |
|
|
|
1,474,677 |
|
|
|
(46,358 |
) |
|
|
361 |
|
|
Commercial mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
|
|
|
104,546 |
|
|
|
(3,531 |
) |
|
|
13 |
|
|
|
23,225 |
|
|
|
(981 |
) |
|
|
4 |
|
|
|
127,771 |
|
|
|
(4,512 |
) |
|
|
17 |
|
|
Obligations of states and political subdivisions
|
|
|
357,070 |
|
|
|
(5,019 |
) |
|
|
571 |
|
|
|
76,447 |
|
|
|
(2,256 |
) |
|
|
163 |
|
|
|
433,517 |
|
|
|
(7,275 |
) |
|
|
734 |
|
|
Corporate debt securities
|
|
|
43,559 |
|
|
|
(791 |
) |
|
|
21 |
|
|
|
1,948 |
|
|
|
(41 |
) |
|
|
1 |
|
|
|
45,507 |
|
|
|
(832 |
) |
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total temporarily impaired securities
|
|
$ |
1,450,303 |
|
|
$ |
(27,864 |
) |
|
|
789 |
|
|
$ |
752,752 |
|
|
$ |
(33,986 |
) |
|
|
377 |
|
|
$ |
2,203,055 |
|
|
$ |
(61,850 |
) |
|
|
1,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2017 |
|
| |
|
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 |
|
|
U.S. Government sponsored entities and agencies
|
|
$ |
24,776 |
|
|
$ |
(160 |
) |
|
|
4 |
|
|
$ |
42,248 |
|
|
$ |
(771 |
) |
|
|
8 |
|
|
$ |
67,024 |
|
|
$ |
(931 |
) |
|
|
12 |
|
|
Residential mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
|
|
|
423,794 |
|
|
|
(5,039 |
) |
|
|
87 |
|
|
|
637,461 |
|
|
|
(16,977 |
) |
|
|
193 |
|
|
|
1,061,255 |
|
|
|
(22,016 |
) |
|
|
280 |
|
|
Commercial mortgage-backed securities and collateralized mortgage
obligations of government sponsored entities and agencies
|
|
|
79,061 |
|
|
|
(1,089 |
) |
|
|
10 |
|
|
|
27,852 |
|
|
|
(496 |
) |
|
|
6 |
|
|
|
106,913 |
|
|
|
(1,585 |
) |
|
|
16 |
|
|
Obligations of states and political subdivisions
|
|
|
132,831 |
|
|
|
(852 |
) |
|
|
210 |
|
|
|
77,554 |
|
|
|
(1,217 |
) |
|
|
160 |
|
|
|
210,385 |
|
|
|
(2,069 |
) |
|
|
370 |
|
|
Corporate debt securities
|
|
|
4,015 |
|
|
|
(19 |
) |
|
|
1 |
|
|
|
1,948 |
|
|
|
(40 |
) |
|
|
1 |
|
|
|
5,963 |
|
|
|
(59 |
) |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total temporarily impaired securities
|
|
$ |
664,477 |
|
|
$ |
(7,159 |
) |
|
|
312 |
|
|
$ |
787,063 |
|
|
$ |
(19,501 |
) |
|
|
368 |
|
|
$ |
1,451,540 |
|
|
$ |
(26,660 |
) |
|
|
680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 substantially all
debt securities are rated above 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, Cincinnati and Indianapolis stock totaling
$59.3 million and $45.9 million at June 30, 2018 and
December 31, 2017, 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.
|