Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019:

			March 31, 2020
			Fair Value Measurements Using:
	March 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(unaudited, in thousands)	2020		(level 1)		(level 2)		(level 3)
Recurring fair value measurements
Equity securities	$	11,230	$	11,230	$	—	$	—
Available-for-sale debt securities
U.S. Treasury		21,508		—		21,508		—
U.S. Government sponsored entities and agencies		159,379		—		159,379		—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		1,671,469		—		1,671,469		—
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		223,827		—		223,827		—
Obligations of state and political subdivisions		141,573		—		139,997		1,576
Corporate debt securities		44,326		—		44,326		—
Total available-for-sale debt securities	$	2,262,082	$	—	$	2,260,506	$	1,576
Loans held for sale		48,021		—		48,021		—
Other assets - interest rate derivatives agreements		48,182		—		48,182		—
Total assets recurring fair value measurements	$	2,369,515	$	11,230	$	2,356,709	$	1,576

Other liabilities - interest rate derivatives agreements	$	52,464	$	—	$	52,464	$	—
Total liabilities recurring fair value measurements	$	52,464	$	—	$	52,464	$	—

Nonrecurring fair value measurements
Individually-evaluated nonperforming loans	$	2,439	$	—	$	—	$	2,439
Other real estate owned and repossessed assets		1,032		—		—		1,032
Total nonrecurring fair value measurements	$	3,471	$	—	$	—	$	3,471

			December 31, 2019
			Fair Value Measurements Using:
	December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	2019		(level 1)		(level 2)		(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

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)

March 31, 2020

Individually-evaluated nonperforming loans

2,439

Appraisal of collateral ⁽¹⁾

Appraisal adjustments ⁽²⁾

—

Other real estate owned and repossessed assets

1,032

Appraisal of collateral ^{(1), (3)}

Liquidation expenses ⁽²⁾

—

December 31, 2019

Impaired loans

2,362

Appraisal of collateral ⁽¹⁾

Appraisal adjustments ⁽²⁾

—

Other real estate owned and repossessed assets

4,178

Appraisal of collateral ^{(1), (3)}

Liquidation expenses ⁽²⁾

—

⁽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

					Fair Value Measurements at
					March 31, 2020
	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	$	593,872	$	593,872	$	593,872	$	—	$	—
Equity securities		11,230		11,230		11,230		—		—
Available-for-sale debt securities		2,262,082		2,262,082		—		2,260,506		1,576
Held-to-maturity debt securities		814,178		841,120		—		840,597		523
Net loans		10,235,324		10,431,898		—		—		10,431,898
Loans held for sale		48,021		48,021		—		48,021		—
Other assets - interest rate derivatives		48,182		48,182		—		48,182		—
Accrued interest receivable		43,960		43,960		43,960		—		—

Financial Liabilities
Deposits		11,043,332		11,052,793		9,104,011		1,948,782		—
Federal Home Loan Bank borrowings		1,585,608		1,598,550		—		1,598,550		—
Other borrowings		333,966		334,305		334,305		—		—
Subordinated debt and junior subordinated debt		192,008		186,404		—		117,046		69,358
Other liabilities - interest rate derivatives		52,464		52,464		—		52,464		—
Accrued interest payable		7,667		7,667		7,667		—		—

					Fair Value Measurements at
					December 31, 2019
	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	$	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		—		122,934		65,415
Other liabilities - interest rate derivatives		16,117		16,117		—		16,117		—
Accrued interest payable		8,077		8,077		8,077		—		—

- 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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