Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Nonrecurring Basis

. The following tables set forth Wesbanco’s financial assets and liabilities that were accounted for at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as of December 31, 2019 and December 31, 2018:

			December 31, 2019
			Fair Value Measurements Using:
(in thousands)	December 31, 2019		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)
Recurring fair value measurements
Equity securities	$	12,343	$	12,343	$	—	$	—
Available-for-sale debt securities:
U.S. Treasury		32,836		—		32,836		—
U.S. Government sponsored entities and agencies		159,628		—		159,628		—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		1,815,987		—		1,815,987		—
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		190,409		—		190,409		—
Obligations of state and political subdivisions		145,609		—		144,004		1,605
Corporate debt securities		49,089		—		49,089		—
Total available-for-sale debt securities	$	2,393,558	$	—	$	2,391,953	$	1,605
Loans held for sale		43,013		—		43,013		—
Other assets—interest rate derivatives agreements		14,585		—		14,585		—
Total assets recurring fair value measurements	$	2,463,499	$	12,343	$	2,449,551	$	1,605
Other liabilities—interest rate derivatives agreements		16,117		—		16,117		—
Total liabilities recurring fair value measurements	$	16,117	$	—	$	16,117	$	—
Nonrecurring fair value measurements
Impaired loans	$	2,362	$	—	$	—	$	2,362
Other real estate owned and repossessed assets		4,178		—		—		4,178
Total nonrecurring fair value measurements	$	6,540	$	—	$	—	$	6,540

	December 31, 2018
	Fair Value Measurements Using:
(in thousands)	December 31, 2018		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)
Recurring fair value measurements
Equity securities	$	11,737	$	11,737	$	-	$	-
Available-for-sale debt securities:
'U.S. Treasury		19,878		-		19,878		-
U.S. Government sponsored entities and agencies		141,652		-		141,652		-
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		1,561,255		-		1,561,255		-
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		168,972		-		168,972		-
Obligations of state and political subdivisions		185,114		-		183,611		1,503
Corporate debt securities		37,258		-		37,258		-
Total available-for-sale debt securities	$	2,114,129	$	-	$	2,112,626	$	1,503
Loans held for sale		8,994		-		8,994		-
Other assets—interest rate derivatives agreements		4,650		-		4,650		-
Total assets recurring fair value measurements	$	2,139,510	$	11,737	$	2,126,270	$	1,503
Other liabilities—interest rate derivatives agreements		5,081		-		5,081		-
Total liabilities recurring fair value measurements	$	5,081	$	-	$	5,081	$	-
Nonrecurring fair value measurements
Impaired loans	$	-	$	-	$	-	$	-
Other real estate owned and repossessed assets		7,265		-		-		7,265
Total nonrecurring fair value measurements	$	7,265	$	-	$	-	$	7,265

Schedule of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Wesbanco has utilized level 3 inputs to determine fair value:

	Quantitative Information about Level 3 Fair Value Measurements
(in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range / Weighted Average
December 31, 2019:
Impaired loans	$	2,362	Appraisal of collateral (1)	Appraisal adjustments (2)	(29.8%)/(29.8%)
				Liquidation expenses (2)	(5.3%)/(5.3%)
Other real estate owned and repossessed assets		4,178	Appraisal of collateral (1)(3)

December 31, 2018:
Other real estate owned and repossessed assets		7,265	Appraisal of collateral (1)(3)

(1)	Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs, which are not identifiable.

(2)	Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expenses are presented as a percent of the appraisal.

(3)	Includes estimated liquidation expenses and numerous dissimilar qualitative adjustments by management which are not identifiable.

Estimates Fair Values of Financial Instruments

					Fair Value Measurements at December 31, 2019
(in thousands)	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)
Financial Assets
Cash and due from banks	$	234,796	$	234,796	$	234,796	$	—	$	—
Equity securities		12,343		12,343		12,343		—		—
Available-for-sale debt securities		2,393,558		2,393,558		—		2,391,953		1,605
Held-to-maturity debt securities		851,753		874,523		—		873,995		528
Net loans		10,215,556		10,297,989		—		—		10,297,989
Loans held for sale		43,013		43,013		—		43,013		—
Other assets—interest rate derivatives		14,585		14,585		—		14,585		—
Accrued interest receivable		43,648		43,648		43,648		—		—

Financial Liabilities
Deposits		11,004,006		10,989,818		8,948,086		2,041,732		—
Federal Home Loan Bank borrowings		1,415,615		1,420,302		—		1,420,302		—
Other borrowings		282,362		282,691		279,345		3,346		—
Subordinated debt and junior subordinated debt		199,869		188,349		—		188,349		—
Other liabilities—interest rate derivatives		16,117		16,117		—		16,117		—
Accrued interest payable		8,077		8,077		8,077		—		—

					Fair Value Measurements at December 31, 2018
(in thousands)	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)
Financial Assets
Cash and due from banks	$	169,186	$	169,186	$	169,186	$	—	$	—
Equity securities		11,737		11,737		11,737		—		—
Available-for-sale debt securities		2,114,129		2,114,129		—		2,112,626		1,503
Held-to-maturity debt securities		1,020,934		1,020,743		—		1,020,195		548
Net loans		7,607,333		7,422,825		—		—		7,422,825
Loans held for sale		8,994		8,994		—		8,994		—
Other assets—interest rate derivatives		4,650		4,650		—		4,650		—
Accrued interest receivable		38,853		38,853		38,853		—		—

Financial Liabilities
Deposits		8,831,633		8,836,390		7,376,023		1,460,367		—
Federal Home Loan Bank borrowings		1,054,174		1,051,401		—		1,051,401		—
Other borrowings		290,522		290,854		288,918		1,936		—
Subordinated debt and junior subordinated debt		189,842		174,448		—		174,448		—
Other liabilities—interest rate derivatives		5,081		5,081		—		5,081		—
Accrued interest payable		4,627		4,627		4,627		—		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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