Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021 and December 31, 2020:

			March 31, 2021
			Fair Value Measurements Using:
	March 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(unaudited, in thousands)	2021		(level 1)		(level 2)		(level 3)
Recurring fair value measurements
Equity securities	$	13,123	$	13,123	$	—	$	—
Available-for-sale debt securities
U.S. Treasury		29,997		—		29,997		—
U.S. Government sponsored entities and agencies		176,330		—		176,330		—
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		2,140,793		—		2,140,793		—
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		291,681		—		291,681		—
Obligations of states and political subdivisions		111,798		—		110,287		1,511
Corporate debt securities		24,613		—		24,613		—
Total available-for-sale debt securities	$	2,775,212	$	—	$	2,773,701	$	1,511
Loans held for sale		153,520		—		153,520		—
Other assets - interest rate derivatives agreements		31,732		—		31,732		—
Total assets recurring fair value measurements	$	2,973,587	$	13,123	$	2,958,953	$	1,511

Other liabilities - interest rate derivatives agreements	$	32,470	$	—	$	32,470	$	—
Total liabilities recurring fair value measurements	$	32,470	$	—	$	32,470	$	—

Nonrecurring fair value measurements
Individually-evaluated nonperforming loans	$	1,909	$	—	$	—	$	1,909
Other real estate owned and repossessed assets		393		—		—		393
Total nonrecurring fair value measurements	$	2,302	$	—	$	—	$	2,302

			December 31, 2020
			Fair Value Measurements Using:
	December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	2020		(level 1)		(level 2)		(level 3)
Recurring fair value measurements
Equity securities	$	13,047	$	13,047	$	—	$	—
Available-for-sale debt securities
U.S. Treasury		39,982		—		39,982		—
U.S. Government sponsored entities and agencies		211,682		—		211,682		—
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		1,264,737		—		1,264,737		—
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		320,098		—		320,098		—
Obligations of states and political subdivisions		115,762		—		114,227		1,535
Corporate debt securities		25,875		—		25,875		—
Total available-for-sale debt securities	$	1,978,136	$	—	$	1,976,601	$	1,535
Loans held for sale		168,378		—		168,378		—
Other assets - interest rate derivatives agreements		46,418		—		46,418		—
Total assets recurring fair value measurements	$	2,205,979	$	13,047	$	2,191,397	$	1,535

Other liabilities - interest rate derivatives agreements	$	49,917	$	—	$	49,917	$	—
Total liabilities recurring fair value measurements	$	49,917	$	—	$	49,917	$	—

Nonrecurring fair value measurements
Individually-evaluated nonperforming loans	$	1,958	$	—	$	—	$	1,958
Other real estate owned and repossessed assets		549		—		—		549
Total nonrecurring fair value measurements	$	2,507	$	—	$	—	$	2,507

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, 2021
Individually-evaluated nonperforming loans	$	1,909	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	(30.0%)/(30.0%)
				Liquidation expenses ⁽²⁾	(5.6%)/(5.6%)
Other real estate owned and repossessed assets	$	393	Appraisal of collateral ^{(1), (3)}
December 31, 2020
Individually-evaluated nonperforming loans	$	1,958	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	(30.0%)/(30.0%)
				Liquidation expenses ⁽²⁾	(5.6%)/(5.6%)
Other real estate owned and repossessed assets	$	549	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 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, 2021
	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	$	759,048	$	759,048	$	759,048	$	—	$	—
Equity securities		13,123		13,123		13,123		—		—
Available-for-sale debt securities		2,775,212		2,775,212		—		2,773,701		1,511
Held-to-maturity debt securities		813,450		839,872		—		839,411		461
Net loans		10,543,272		10,540,445		—		—		10,540,445
Loans held for sale		153,520		153,520		—		153,520		—
Other assets - interest rate derivatives		31,732		31,732		—		31,732		—
Accrued interest receivable		68,896		68,896		68,896		—		—

Financial Liabilities
Deposits		13,286,999		13,300,728		11,731,925		1,568,803		—
Federal Home Loan Bank borrowings		433,984		438,211		—		438,211		—
Other borrowings		137,218		125,925		125,925		—		—
Subordinated debt and junior subordinated debt		192,430		172,142		—		105,371		66,771
Other liabilities - interest rate derivatives		32,470		32,470		—		32,470		—
Accrued interest payable		3,224		3,224		3,224		—		—

					Fair Value Measurements at
					December 31, 2020
	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	$	905,447	$	905,447	$	905,447	$	—	$	—
Equity securities		13,047		13,047		13,047		—		—
Available-for-sale debt securities		1,978,136		1,978,136		—		1,976,601		1,535
Held-to-maturity debt securities		730,886		768,183		—		767,720		463
Net loans		10,603,406		10,802,883		—		—		10,802,883
Loans held for sale		168,378		168,378		—		168,378		—
Other assets - interest rate derivatives		46,418		46,418		—		46,418		—
Accrued interest receivable		66,790		66,790		66,790		—		—

Financial Liabilities
Deposits		12,429,373		12,439,981		10,810,863		1,629,118		—
Federal Home Loan Bank borrowings		549,003		555,375		—		555,375		—
Other borrowings		241,950		235,796		235,796		—		—
Subordinated debt and junior subordinated debt		192,291		174,452		—		105,768		68,684
Other liabilities - interest rate derivatives		49,917		49,917		—		49,917		—
Accrued interest payable		4,314		4,314		4,314		—		—

- 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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