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Fair Value Measurement (Tables)
6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Nonrecurring Basis

The fair value amounts presented in the table below are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. 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 June 30, 2022 and December 31, 2021:

 

 

 

 

 

 

June 30, 2022

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

June 30,

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(unaudited, in thousands)

 

2022

 

 

(level 1)

 

 

(level 2)

 

 

(level 3)

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

11,413

 

 

$

11,413

 

 

$

—

 

 

$

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored entities and agencies

 

 

248,929

 

 

 

—

 

 

 

248,929

 

 

 

—

 

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

2,089,287

 

 

 

—

 

 

 

2,089,287

 

 

 

—

 

Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

431,828

 

 

 

—

 

 

 

431,828

 

 

 

—

 

Obligations of states and political subdivisions

 

 

99,310

 

 

 

—

 

 

 

98,084

 

 

 

1,226

 

Corporate debt securities

 

 

15,297

 

 

 

—

 

 

 

15,297

 

 

 

—

 

Total available-for-sale debt securities

 

$

2,884,651

 

 

$

—

 

 

$

2,883,425

 

 

$

1,226

 

Loans held for sale

 

 

17,560

 

 

 

—

 

 

 

17,560

 

 

 

—

 

Other assets - interest rate swaps

 

 

46,815

 

 

 

—

 

 

 

46,815

 

 

 

—

 

Total assets recurring fair value measurements

 

$

2,960,439

 

 

$

11,413

 

 

$

2,947,800

 

 

$

1,226

 

Other liabilities - interest rate swaps

 

$

45,734

 

 

$

—

 

 

$

45,734

 

 

$

—

 

Total liabilities recurring fair value measurements

 

$

45,734

 

 

$

—

 

 

$

45,734

 

 

$

—

 

Nonrecurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

23,725

 

 

$

—

 

 

$

—

 

 

$

23,725

 

Other real estate owned and repossessed assets

 

 

31

 

 

 

—

 

 

 

—

 

 

 

31

 

Total nonrecurring fair value measurements

 

$

23,756

 

 

$

—

 

 

$

—

 

 

$

23,756

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

December 31,

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(in thousands)

 

2021

 

 

(level 1)

 

 

(level 2)

 

 

(level 3)

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

13,466

 

 

$

13,466

 

 

$

—

 

 

$

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored entities and agencies

 

 

236,978

 

 

 

—

 

 

 

236,978

 

 

 

—

 

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

2,285,213

 

 

 

—

 

 

 

2,285,213

 

 

 

—

 

Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

367,493

 

 

 

—

 

 

 

367,493

 

 

 

—

 

Obligations of states and political subdivisions

 

 

106,340

 

 

 

—

 

 

 

104,847

 

 

 

1,493

 

Corporate debt securities

 

 

17,438

 

 

 

—

 

 

 

17,438

 

 

 

—

 

Total available-for-sale debt securities

 

$

3,013,462

 

 

$

—

 

 

$

3,011,969

 

 

$

1,493

 

Loans held for sale

 

 

25,277

 

 

 

—

 

 

 

25,277

 

 

 

—

 

Other assets - interest rate swaps

 

 

24,867

 

 

 

—

 

 

 

24,867

 

 

 

—

 

Total assets recurring fair value measurements

 

$

3,077,072

 

 

$

13,466

 

 

$

3,062,113

 

 

$

1,493

 

Other liabilities - interest rate swaps

 

$

26,388

 

 

$

—

 

 

$

26,388

 

 

$

—

 

Total liabilities recurring fair value measurements

 

$

26,388

 

 

$

—

 

 

$

26,388

 

 

$

—

 

Nonrecurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

13,558

 

 

$

—

 

 

$

—

 

 

$

13,558

 

Other real estate owned and repossessed assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total nonrecurring fair value measurements

 

$

13,558

 

 

$

—

 

 

$

—

 

 

$

13,558

 

 

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

 

 

Fair Value

 

 

Valuation

 

Unobservable

 

Range (Weighted

(unaudited, in thousands)

 

Estimate

 

 

Techniques

 

Input

 

Average)

June 30, 2022

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

23,725

 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

(30.0%)/(30.0%)

 

 

 

 

 

 

 

Liquidation expenses (2)

 

(5.6%) to (8.0%)/(6.7%)

Other real estate owned and repossessed assets

 

$

31

 

 

Appraisal of collateral (1), (3)

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

13,558

 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

(0.0%)/(0.0%)

 

 

 

 

 

 

 

Liquidation expenses (2)

 

(8.0%)/(8.0%)

 

(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 expense 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

The estimated fair values of Wesbanco’s financial instruments are summarized below:

 

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

 

 

 

 

 

 

June 30, 2022

 

 

 

Carrying

 

 

Fair Value

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(unaudited, in thousands)

 

Amount

 

 

Estimate

 

 

(level 1)

 

 

(level 2)

 

 

(level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

450,009

 

 

$

450,009

 

 

$

450,009

 

 

$

—

 

 

$

—

 

Equity securities

 

 

11,413

 

 

 

11,413

 

 

 

11,413

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

2,884,651

 

 

 

2,884,651

 

 

 

—

 

 

 

2,883,425

 

 

 

1,226

 

Net held-to-maturity debt securities

 

 

1,281,030

 

 

 

1,153,594

 

 

 

—

 

 

 

1,153,244

 

 

 

350

 

Net loans

 

 

10,091,286

 

 

 

9,236,728

 

 

 

—

 

 

 

—

 

 

 

9,236,728

 

Loans held for sale

 

 

17,560

 

 

 

17,560

 

 

 

—

 

 

 

17,560

 

 

 

—

 

Other assets - interest rate swaps

 

 

46,815

 

 

 

46,815

 

 

 

—

 

 

 

46,815

 

 

 

—

 

Accrued interest receivable

 

 

61,918

 

 

 

61,918

 

 

 

61,918

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,569,302

 

 

 

13,575,715

 

 

 

12,463,997

 

 

 

1,111,718

 

 

 

—

 

Federal Home Loan Bank borrowings

 

 

122,650

 

 

 

121,881

 

 

 

—

 

 

 

121,881

 

 

 

—

 

Other borrowings

 

 

147,964

 

 

 

132,138

 

 

 

132,138

 

 

 

—

 

 

 

—

 

Subordinated debt and junior subordinated debt

 

 

280,910

 

 

 

273,599

 

 

 

—

 

 

 

273,599

 

 

 

—

 

Other liabilities - interest rate swaps

 

 

45,734

 

 

 

45,734

 

 

 

—

 

 

 

45,734

 

 

 

—

 

Accrued interest payable

 

 

2,815

 

 

 

2,815

 

 

 

2,815

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

Carrying

 

 

Fair Value

 

 

Quoted Prices in
Active Markets
for Identical
Assets

 

 

Significant
Other
Observable
Inputs

 

 

Significant
Unobservable
Inputs

 

(in thousands)

 

Amount

 

 

Estimate

 

 

(level 1)

 

 

(level 2)

 

 

(level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

1,251,358

 

 

$

1,251,358

 

 

$

1,251,358

 

 

$

—

 

 

$

—

 

Equity securities

 

 

13,466

 

 

 

13,466

 

 

 

13,466

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

3,013,462

 

 

 

3,013,462

 

 

 

—

 

 

 

3,011,969

 

 

 

1,493

 

Net held-to-maturity debt securities

 

 

1,004,555

 

 

 

1,028,452

 

 

 

—

 

 

 

1,028,047

 

 

 

405

 

Net loans

 

 

9,611,856

 

 

 

9,385,917

 

 

 

—

 

 

 

—

 

 

 

9,385,917

 

Loans held for sale

 

 

25,277

 

 

 

25,277

 

 

 

—

 

 

 

25,277

 

 

 

—

 

Other assets - interest rate swaps

 

 

24,867

 

 

 

24,867

 

 

 

—

 

 

 

24,867

 

 

 

—

 

Accrued interest receivable

 

 

60,844

 

 

 

60,844

 

 

 

60,844

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,565,863

 

 

 

13,575,477

 

 

 

12,273,211

 

 

 

1,302,266

 

 

 

—

 

Federal Home Loan Bank borrowings

 

 

183,920

 

 

 

185,684

 

 

 

—

 

 

 

185,684

 

 

 

—

 

Other borrowings

 

 

141,893

 

 

 

134,288

 

 

 

134,288

 

 

 

—

 

 

 

—

 

Subordinated debt and junior subordinated debt

 

 

132,860

 

 

 

109,186

 

 

 

—

 

 

 

109,186

 

 

 

—

 

Other liabilities - interest rate swaps

 

 

26,388

 

 

 

26,388

 

 

 

—

 

 

 

26,388

 

 

 

—

 

Accrued interest payable

 

 

1,901

 

 

 

1,901

 

 

 

1,901

 

 

 

—

 

 

 

—