NOTE 3. SECURITIES

The following table presents the fair value and amortized cost of available-for-sale and held-to-maturity securities:


	June 30, 2013									December 31, 2012
*(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
Other government agencies	$	72,082	$	10	$	(1,259	)	$	70,833	$	96,257	$	411	$	(56	)	$	96,612
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		717,329		4,857		(7,770	)		714,416		721,824		10,690		(304	)		732,210
Obligations of state and political subdivisions		126,618		5,838		(242	)		132,214		139,511		9,133		(9	)		148,635
Corporate debt securities		42,886		149		(427	)		42,608		32,706		213		(234	)		32,685

Total debt securities	$	958,915	$	10,854	$	(9,698	)	$	960,071	$	990,298	$	20,447	$	(603	)	$	1,010,142
Equity securities		9,933		1,174		—			11,107		10,207		916		(21	)		11,102

Total available-for-sale securities	$	968,848	$	12,028	$	(9,698	)	$	971,178	$	1,000,505	$	21,363	$	(624	)	$	1,021,244

Held-to-maturity
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies	$	117,737	$	2,926	$	(783	)	$	119,880	$	152,872	$	6,421	$	(80	)	$	159,213
Other residential collateralized mortgage obligations		—		—		—			—		353		8		—			361
Obligations of state and political subdivisions		488,313		15,799		(11,342	)		492,770		449,284		31,244		(829	)		479,699
Corporate debt securities		2,711		—		(158	)		2,553		—		—		—			—

Total held-to-maturity securities	$	608,761	$	18,725	$	(12,283	)	$	615,203	$	602,509	$	37,673	$	(909	)	$	639,273

Total securities	$	1,577,609	$	30,753	$	(21,981	)	$	1,586,381	$	1,603,014	$	59,036	$	(1,533	)	$	1,660,517

At June 30, 2013, and December 31, 2012, there were no holdings of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of WesBanco’s shareholders’ equity.

The following table presents the fair value of available-for-sale and held-to-maturity securities by contractual maturity at June 30, 2013. In many instances, the issuers may have the right to call or prepay obligations without penalty prior to the contractual maturity date.

June 30, 2013

(unaudited, in thousands)

One Year
or less

One to
Five Years

Five to
Ten Years

After
Ten Years

Mortgage-backed
and Equity

Total

Available-for-sale

Other government agencies

—

17,755

39,310

13,768

—

70,833

Residential mortgage-backed securities and collateralized mortgage obligations of government agencies ⁽¹⁾

—

714,416

Obligations of states and political subdivisions

8,397

43,979

29,347

50,491

—

132,214

Corporate debt securities

6,141

16,137

12,651

7,679

—

42,608

Equity securities ⁽²⁾

—

11,107

Total available-for-sale securities

14,538

77,871

81,308

71,938

725,523

971,178

Held-to-maturity ⁽³⁾

Residential mortgage-backed securities and collateralized mortgage obligations of obligations ⁽¹⁾

—

119,880

Obligations of states and political subdivisions

2,715

10,594

115,417

364,044

—

492,770

Corporate debt securities

—

2,553

—

2,553

Total held-to-maturity securities

2,715

10,594

117,970

364,044

119,880

615,203

Total securities

17,253

88,465

199,278

435,982

845,403

1,586,381

⁽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⁾	Equity securities, which have no stated maturity, are not assigned a maturity category.

⁽³⁾	The held-to-maturity portfolio is carried at an amortized cost of $608.8 million.

Securities with aggregate par values of $680.2 million and $710.5 million at June 30, 2013 and December 31, 2012, 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 $9.3 million and $42.8 million for the six months ended June 30, 2013 and 2012, respectively. Net unrealized gains on available-for-sale securities included in accumulated other comprehensive income, net of tax, as of June 30, 2013 and December 31, 2012 were $1.4 million and $13.0 million, respectively. Gross security gains of $0.3 million and $1.1 million on available-for-sale securities were realized for the six months ended June 30, 2013 and 2012, respectively, while gross security losses of $0.2 million were realized for the six months ended June 30, 2013 primarily due to the write-down of two equity securities. Additionally, gross security gains of $0.6 million and $0.3 million on held-to-maturity securities were realized for the six months ended June 30, 2013 and 2012, respectively.

The following tables provide information on unrealized losses on investment securities that have been in an unrealized loss position for less than twelve months and twelve months or more as of June 30, 2013 and December 31, 2012:


	June 30, 2013
	Less than 12 months							12 months or more							Total
*(unaudited, dollars in thousands)*	Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities
Other government agencies	$	55,470	$	(1,209	)		12	$	4,587	$	(50	)		1	$	60,057	$	(1,259	)		13

Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		431,881		(8,469	)		67		5,439		(84	)		7		437,320		(8,553	)		74
Obligations of states and political subdivisions		187,965		(11,176	)		298		6,862		(408	)		5		194,827		(11,584	)		303
Corporate debt securities		17,981		(410	)		6		7,825		(175	)		3		25,806		(585	)		9

Total temporarily impaired securities	$	693,297	$	(21,264	)		383	$	24,713	$	(717	)		16	$	718,010	$	(21,981	)		399


	December 31, 2012
	Less than 12 months							12 months or more							Total
(unaudited, dollars in thousands)	Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities
Other government agencies	$	18,894	$	(56	)		6	$	—	$	—			—	$	18,894	$	(56	)		6

Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		38,913		(258	)		20		9,966		(126	)		10		48,879		(384	)		30
Obligations of states and political subdivisions		72,521		(838	)		107		—		—			—		72,521		(838	)		107
Corporate debt securities		1,526		(57	)		2		10,878		(177	)		5		12,404		(234	)		7
Equity securities		2,838		(21	)		2		—		—			—		2,838		(21	)		2

Total temporarily impaired securities	$	134,692	$	(1,230	)		137	$	20,844	$	(303	)		15	$	155,536	$	(1,533	)		152

Unrealized losses on debt securities in the table 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 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 of investment grade quality 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 Federal Home Loan Bank (“FHLB”) of Pittsburgh and FHLB of Cincinnati stock totaling $13.2 million and $21.3 million at June 30, 2013 and December 31, 2012, 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.