Employee Benefit Plans (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
|---|
| Summary of Benefit Obligations and Funded Status of the Plan |
The benefit obligations and funded status of the Plan are as follows:
|
|
|
December 31, |
|
|
(dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
Accumulated benefit obligation at end of year |
|
$ |
157,328 |
|
|
$ |
142,980 |
|
|
Change in projected benefit obligation: |
|
|
|
|
|
|
|
|
|
Projected benefit obligation at beginning of year |
|
$ |
153,960 |
|
|
$ |
128,758 |
|
|
Service cost |
|
|
2,283 |
|
|
|
2,248 |
|
|
Interest cost |
|
|
4,507 |
|
|
|
5,266 |
|
|
Actuarial loss |
|
|
14,376 |
|
|
|
22,395 |
|
|
Plan amendment |
|
|
(313 |
) |
|
|
— |
|
|
Benefits paid |
|
|
(6,380 |
) |
|
|
(4,707 |
) |
|
Projected benefit obligation at end of year |
|
$ |
168,433 |
|
|
$ |
153,960 |
|
|
Change in fair value of plan assets: |
|
|
|
|
|
|
|
|
|
Fair value of plan assets at beginning of year |
|
$ |
167,720 |
|
|
$ |
141,108 |
|
|
Actual return on plan assets |
|
|
24,376 |
|
|
|
28,319 |
|
|
Employer contribution |
|
|
— |
|
|
|
3,000 |
|
|
Benefits paid |
|
|
(6,380 |
) |
|
|
(4,707 |
) |
|
Fair value of plan assets at end of year |
|
$ |
185,716 |
|
|
$ |
167,720 |
|
|
Amounts recognized in the statement of financial position: |
|
|
|
|
|
|
|
|
|
Funded status |
|
$ |
17,284 |
|
|
$ |
13,760 |
|
|
Net amounts recognized as receivable pension costs in the
consolidated balance sheets |
|
$ |
17,284 |
|
|
$ |
13,760 |
|
|
Amounts recognized in accumulated other comprehensive
income consist of: |
|
|
|
|
|
|
|
|
|
Unrecognized prior service (credit) cost |
|
$ |
(227 |
) |
|
$ |
52 |
|
|
Unrecognized net loss |
|
|
21,726 |
|
|
|
24,486 |
|
|
Net amounts recognized in accumulated other comprehensive
income (before tax) |
|
$ |
21,499 |
|
|
$ |
24,538 |
|
|
Weighted average assumptions used to determine benefit obligations: |
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
2.74 |
% |
|
|
3.38 |
% |
|
Rate of compensation increase |
|
|
3.30 |
% |
|
|
3.53 |
% |
|
Expected long-term return on assets |
|
|
6.11 |
% |
|
|
6.30 |
% |
|
| Components of and Weighted-Average Assumptions Used in Determining Net Periodic Benefit Costs |
The components of and weighted-average assumptions used to determine net periodic benefit costs are as follows:
|
|
|
For the Years Ended December 31, |
|
|
(dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Components of net periodic benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost—benefits earned during year |
|
$ |
2,283 |
|
|
$ |
2,248 |
|
|
$ |
2,835 |
|
|
Interest cost on projected benefit obligation |
|
|
4,507 |
|
|
|
5,266 |
|
|
|
4,517 |
|
|
Expected return on plan assets |
|
|
(10,433 |
) |
|
|
(8,869 |
) |
|
|
(8,939 |
) |
|
Amortization of prior service (credit) cost |
|
|
(34 |
) |
|
|
26 |
|
|
|
26 |
|
|
Amortization of net loss |
|
|
3,192 |
|
|
|
3,240 |
|
|
|
3,053 |
|
|
Net periodic pension (income) cost |
|
$ |
(485 |
) |
|
$ |
1,911 |
|
|
$ |
1,492 |
|
|
Other changes in plan assets and benefit obligations recognized in other
comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (gain) for period |
|
$ |
432 |
|
|
$ |
2,946 |
|
|
$ |
2,068 |
|
|
Prior service credit |
|
|
(313 |
) |
|
|
— |
|
|
|
— |
|
|
Unrecognized loss on merged plan |
|
|
— |
|
|
|
— |
|
|
|
1,429 |
|
|
Amortization of prior service credit (cost) |
|
|
34 |
|
|
|
(26 |
) |
|
|
(26 |
) |
|
Amortization of net loss |
|
|
(3,192 |
) |
|
|
(3,240 |
) |
|
|
(3,053 |
) |
|
Total recognized in other comprehensive (income) loss |
|
$ |
(3,039 |
) |
|
$ |
(320 |
) |
|
$ |
418 |
|
|
Total recognized in net periodic pension cost and other comprehensive
income |
|
$ |
(3,524 |
) |
|
$ |
1,591 |
|
|
$ |
1,910 |
|
|
Weighted-average assumptions used to determine net periodic
pension cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
3.38 |
% |
|
|
4.48 |
% |
|
|
3.81 |
% |
|
Rate of compensation increase |
|
|
3.53 |
% |
|
|
3.62 |
% |
|
|
3.70 |
% |
|
Expected long-term return on assets |
|
|
6.30 |
% |
|
|
6.30 |
% |
|
|
6.30 |
% |
|
| Summary of Weighted-Average Asset Allocations by Asset Category |
The following table sets forth the Plan’s weighted-average asset allocations by asset category:
|
|
|
Target |
|
|
|
|
|
|
|
|
|
|
|
Allocation |
|
December 31, |
|
|
|
|
for 2020 |
|
2020 |
|
|
2019 |
|
|
Asset Category: |
|
|
|
|
|
|
|
|
|
|
|
Equity securities |
|
55-75% |
|
|
69 |
% |
|
|
65 |
% |
|
Debt securities |
|
25-55% |
|
|
28 |
% |
|
|
31 |
% |
|
Cash and cash equivalents |
|
0-5% |
|
|
3 |
% |
|
|
4 |
% |
|
Total |
|
|
|
|
100 |
% |
|
|
100 |
% |
|
| Fair Values of the Wesbanco's Pension Plan Assets |
The fair values of Wesbanco’s pension plan assets at December 31, 2020 and 2019, by asset category are as follows:
|
|
|
|
|
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
Fair Value Measurements Using: |
|
|
(in thousands) |
|
Assets at Fair
Value |
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Defined benefit pension plan assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered investment companies |
|
$ |
58,101 |
|
|
$ |
58,101 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Equity securities |
|
|
85,222 |
|
|
|
85,222 |
|
|
|
— |
|
|
|
— |
|
|
Corporate debt securities |
|
|
21,170 |
|
|
|
— |
|
|
|
21,170 |
|
|
|
— |
|
|
Municipal obligations |
|
|
2,382 |
|
|
|
— |
|
|
|
2,382 |
|
|
|
— |
|
|
Residential mortgage-backed securities and collateralized
mortgage obligations of government sponsored entities
and agencies |
|
|
18,425 |
|
|
|
— |
|
|
|
18,425 |
|
|
|
— |
|
|
Total defined benefit pension plan assets (1) |
|
$ |
185,300 |
|
|
$ |
143,323 |
|
|
$ |
41,977 |
|
|
$ |
— |
|
|
(1) |
The defined benefit pension plan statement of net assets also includes cash, accrued interest and dividends, and due to/from brokers resulting in net assets available for benefits of $186.3 million. |
|
|
|
|
|
|
|
December 31, 2019 |
|
|
|
|
|
|
|
|
Fair Value Measurements Using: |
|
|
(in thousands) |
|
Assets at Fair
Value |
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Defined benefit pension plan assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered investment companies |
|
$ |
47,699 |
|
|
$ |
47,699 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Equity securities |
|
|
75,807 |
|
|
|
75,807 |
|
|
|
— |
|
|
|
— |
|
|
Corporate debt securities |
|
|
16,122 |
|
|
|
— |
|
|
|
16,122 |
|
|
|
— |
|
|
Municipal obligations |
|
|
3,313 |
|
|
|
— |
|
|
|
3,313 |
|
|
|
— |
|
|
Residential mortgage-backed securities and collateralized
mortgage obligations of government sponsored entities
and agencies |
|
|
26,320 |
|
|
|
— |
|
|
|
26,320 |
|
|
|
— |
|
|
Total defined benefit pension plan assets (1) |
|
$ |
169,261 |
|
|
$ |
123,506 |
|
|
$ |
45,755 |
|
|
$ |
— |
|
|
(1) |
The defined benefit pension plan statement of net assets also includes cash, accrued interest and dividends, and due to/from brokers resulting in net assets available for benefits of $167.9 million. |
|
| Estimated Benefits to be Paid in Each of Next Five Years and in the Aggregate for the Five Years Thereafter |
The following table presents estimated benefits to be paid in each of the next five years and in the aggregate for the five years thereafter (in thousands):
|
Year |
|
Amount |
|
|
2021 |
|
$ |
6,105 |
|
|
2022 |
|
|
6,313 |
|
|
2023 |
|
|
6,669 |
|
|
2024 |
|
|
7,027 |
|
|
2025 |
|
|
7,416 |
|
|
2026 to 2030 |
|
|
41,262 |
|
|
| Significant Assumptions Used in Calculating the Fair Value of the Grants |
The following table sets forth the significant assumptions used in calculating the fair value of the grants:
|
|
|
For the Years Ended December 31, |
|
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Weighted-average life |
|
5.7 years |
|
|
5.6 years |
|
|
5.2 years |
|
|
Risk-free interest rate |
|
|
0.41 |
% |
|
|
2.18 |
% |
|
|
2.95 |
% |
|
Dividend yield |
|
|
5.94 |
% |
|
|
2.80 |
% |
|
|
2.54 |
% |
|
Volatility factor |
|
|
28.38 |
% |
|
|
21.97 |
% |
|
|
21.27 |
% |
|
Fair value of the grants |
|
$ |
2.54 |
|
|
$ |
6.36 |
|
|
$ |
8.54 |
|
|
| Summary of Activity for the Stock Option Component of the Incentive Plan |
The following table shows the activity for the Stock Option component of the Incentive Plan:
|
|
|
For the Year
Ended December 31, 2020 |
|
|
|
|
Number
of Options |
|
|
Weighted
Average
Exercise Price
Per Share |
|
|
Outstanding at beginning of the year |
|
|
733,440 |
|
|
$ |
33.06 |
|
|
Granted during the year |
|
|
142,600 |
|
|
|
21.55 |
|
|
Exercised during the year |
|
|
(61,623 |
) |
|
|
15.93 |
|
|
Forfeited or expired during the year |
|
|
(39,668 |
) |
|
|
22.03 |
|
|
Outstanding at end of the year |
|
|
774,749 |
|
|
$ |
32.87 |
|
|
Exercisable at year end |
|
|
703,636 |
|
|
$ |
34.01 |
|
|
| Summary of Average Remaining Life of the Stock Options |
The following table shows the average remaining life of the stock options at December 31, 2020:
|
Year Issued |
|
Exercisable
at
Year End |
|
|
Exercise
Price Range
Per Share |
|
|
Options
Outstanding |
|
|
Weighted
Average
Exercise
Price |
|
|
Weighted Avg.
Remaining
Contractual
Life in Years |
|
|
2011 |
|
|
393 |
|
|
$ |
9.97 |
|
|
|
393 |
|
|
$ |
9.97 |
|
|
|
0.07 |
|
|
2012 |
|
|
5,490 |
|
|
10.20 to 13.96 |
|
|
|
5,490 |
|
|
$ |
12.89 |
|
|
|
1.55 |
|
|
2013 |
|
|
18,745 |
|
|
|
15.35 |
|
|
|
18,745 |
|
|
$ |
15.35 |
|
|
|
2.16 |
|
|
2014 |
|
|
53,925 |
|
|
21.37 to 28.79 |
|
|
|
53,925 |
|
|
$ |
25.77 |
|
|
|
1.51 |
|
|
2015 |
|
|
72,522 |
|
|
18.33 to 31.58 |
|
|
|
72,522 |
|
|
$ |
27.19 |
|
|
|
2.43 |
|
|
2016 |
|
|
84,988 |
|
|
22.63 to 32.37 |
|
|
|
84,988 |
|
|
$ |
29.62 |
|
|
|
3.18 |
|
|
2017 |
|
|
104,475 |
|
|
|
38.88 |
|
|
|
104,475 |
|
|
$ |
38.88 |
|
|
|
3.35 |
|
|
2018 |
|
|
166,486 |
|
|
36.97 to 45.65 |
|
|
|
166,486 |
|
|
$ |
43.31 |
|
|
|
5.20 |
|
|
2019 |
|
|
125,500 |
|
|
|
38.93 |
|
|
|
125,500 |
|
|
$ |
38.93 |
|
|
|
5.37 |
|
|
2020 |
|
|
71,112 |
|
|
|
21.55 |
|
|
|
142,225 |
|
|
$ |
21.55 |
|
|
|
6.40 |
|
|
Total |
|
|
703,636 |
|
|
$ 9.97 to $45.65 |
|
|
|
774,749 |
|
|
$ |
32.87 |
|
|
|
4.36 |
|
|
| Schedule of Activity for the Restricted Stock Component of the Plan |
The following table shows the activity for the Restricted Stock component of the Incentive Plan:
|
For the Year Ended December 31, 2020 |
|
Restricted
Stock |
|
|
Weighted
Average
Grant Date
Fair Value
Per Share |
|
|
Non-vested at January 1, 2020 |
|
|
352,250 |
|
|
$ |
40.75 |
|
|
Granted during the year |
|
|
207,222 |
|
|
|
21.58 |
|
|
Vested during the year |
|
|
(89,954 |
) |
|
|
36.34 |
|
|
Forfeited or expired during the year |
|
|
(6,328 |
) |
|
|
24.29 |
|
|
Dividend reinvestment |
|
|
16,854 |
|
|
|
23.18 |
|
|
Non-vested at end of the year |
|
|
480,044 |
|
|
$ |
32.90 |
|
|
| Farmers Capital Bank Corporation Postretirement Medical Benefit Plan [Member] |
|
| Summary of Benefit Obligations and Funded Status of the Plan |
The benefit obligation and funded status of the plan are as follows:
|
|
|
December 31, |
|
|
(dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
Change in projected benefit obligation: |
|
|
|
|
|
|
|
|
|
Projected benefit obligation |
|
$ |
12,632 |
|
|
$ |
11,514 |
|
|
Interest cost |
|
|
360 |
|
|
|
460 |
|
|
Actuarial loss (gain) |
|
|
302 |
|
|
|
1,304 |
|
|
Participant contributions |
|
|
353 |
|
|
|
392 |
|
|
Benefits paid |
|
|
(952 |
) |
|
|
(1,038 |
) |
|
Projected benefit obligation at end of year |
|
$ |
12,695 |
|
|
$ |
12,632 |
|
|
Amounts recognized in the statement of financial position: |
|
|
|
|
|
|
|
|
|
Funded status |
|
$ |
(12,695 |
) |
|
$ |
(12,632 |
) |
|
Net amounts recognized as receivable pension costs in the consolidated balance sheets |
|
$ |
(12,695 |
) |
|
$ |
(12,632 |
) |
|
Amounts recognized in accumulated other comprehensive income consist of: |
|
|
|
|
|
|
|
|
|
Unrecognized net loss |
|
$ |
1,388 |
|
|
$ |
1,153 |
|
|
Prior service cost |
|
|
(2,792 |
) |
|
|
(3,016 |
) |
|
Net amounts recognized in accumulated other comprehensive income (before tax) |
|
$ |
(1,404 |
) |
|
$ |
(1,863 |
) |
|
Weighted average assumptions used to determine benefit obligations: |
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
2.65 |
% |
|
|
3.35 |
% |
|
Rate of compensation increase |
|
NA |
|
|
NA |
|
|
Expected long-term return on assets |
|
NA |
|
|
NA |
|
|
| Components of and Weighted-Average Assumptions Used in Determining Net Periodic Benefit Costs |
The components of and weighted-average assumptions used to determine net periodic benefit costs are as follows:
|
|
|
For the Years Ended December 31, |
|
|
(dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
Components of net periodic benefit cost: |
|
|
|
|
|
|
|
|
|
Interest cost on projected benefit obligation |
|
$ |
360 |
|
|
$ |
460 |
|
|
Amortization of prior service credit |
|
|
(224 |
) |
|
|
(224 |
) |
|
Amortization of net loss |
|
|
67 |
|
|
|
- |
|
|
Net periodic pension cost |
|
$ |
203 |
|
|
$ |
236 |
|
|
Other changes in plan benefit obligations recognized in other comprehensive income: |
|
|
|
|
|
|
|
|
|
Prior service cost for period |
|
$ |
- |
|
|
$ |
- |
|
|
Net (gain) loss for the period |
|
|
302 |
|
|
|
1,304 |
|
|
Amortization of prior service credit |
|
|
224 |
|
|
|
224 |
|
|
Amortization of net loss |
|
|
(67 |
) |
|
|
- |
|
|
Total recognized in other comprehensive income |
|
$ |
459 |
|
|
$ |
1,528 |
|
|
Total recognized in net periodic pension cost and other comprehensive income |
|
$ |
662 |
|
|
$ |
1,764 |
|
|
Weighted-average assumptions used to determine net periodic pension cost: |
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
1.97 |
% |
|
|
2.96 |
% |
|
Rate of compensation increase |
|
NA |
|
|
NA |
|
|
Expected long-term return on assets |
|
NA |
|
|
NA |
|
|
| Estimated Benefits to be Paid in Each of Next Five Years and in the Aggregate for the Five Years Thereafter |
The following table presents estimated benefits to be paid in each of the next five years and in aggregate for the five years thereafter (in thousands):
|
Year |
|
Amount |
|
|
2021 |
|
$ |
599 |
|
|
2022 |
|
|
621 |
|
|
2023 |
|
|
623 |
|
|
2024 |
|
|
627 |
|
|
2025 |
|
|
616 |
|
|
2026 to 2030 |
|
|
3,011 |
|
|