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Securities | 9 Months Ended
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Sep. 30, 2019
Investments Debt And Equity Securities [Abstract] |
Securities | NOTE 4. SECURITIES The following table presents the fair value and amortized cost of available-for-sale and held-to-maturity debt securities:
|  | September 30, 2019 |  |  | December 31, 2018 |
(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 debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | 29,817 |  |  | $ | 61 |  |  | $ | — |  |  | $ | 29,878 |  |  | $ | 19,882 |  |  | $ | 3 |  |  | $ | (7 | ) |  | $ | 19,878 |
U.S. Government sponsored entities and agencies |  |  | 116,508 |  |  |  | 4,012 |  |  |  | (79 | ) |  |  | 120,441 |  |  |  | 142,852 |  |  |  | 556 |  |  |  | (1,756 | ) |  |  | 141,652 |
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies |  |  | 1,663,942 |  |  |  | 21,469 |  |  |  | (4,346 | ) |  |  | 1,681,065 |  |  |  | 1,585,864 |  |  |  | 2,912 |  |  |  | (27,521 | ) |  |  | 1,561,255 |
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies |  |  | 183,634 |  |  |  | 4,716 |  |  |  | (45 | ) |  |  | 188,305 |  |  |  | 171,671 |  |  |  | 264 |  |  |  | (2,963 | ) |  |  | 168,972 |
Obligations of states and political subdivisions |  |  | 145,593 |  |  |  | 5,771 |  |  |  | (1 | ) |  |  | 151,363 |  |  |  | 184,057 |  |  |  | 2,039 |  |  |  | (982 | ) |  |  | 185,114 |
Corporate debt securities |  |  | 37,684 |  |  |  | 592 |  |  |  | (129 | ) |  |  | 38,147 |  |  |  | 37,730 |  |  |  | 87 |  |  |  | (559 | ) |  |  | 37,258 |
Total available-for-sale debt securities |  | $ | 2,177,178 |  |  | $ | 36,621 |  |  | $ | (4,600 | ) |  | $ | 2,209,199 |  |  | $ | 2,142,056 |  |  | $ | 5,861 |  |  | $ | (33,788 | ) |  | $ | 2,114,129 |
Held-to-maturity debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government sponsored entities and agencies |  | $ | 9,854 |  |  | $ | 53 |  |  | $ | (46 | ) |  | $ | 9,861 |  |  | $ | 10,823 |  |  | $ | 6 |  |  | $ | (329 | ) |  | $ | 10,500 |
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies |  |  | 129,797 |  |  |  | 1,273 |  |  |  | (155 | ) |  |  | 130,915 |  |  |  | 148,300 |  |  |  | 204 |  |  |  | (4,170 | ) |  |  | 144,334 |
Obligations of states and political subdivisions |  |  | 679,932 |  |  |  | 22,244 |  |  |  | (170 | ) |  |  | 702,006 |  |  |  | 828,520 |  |  |  | 8,771 |  |  |  | (4,012 | ) |  |  | 833,279 |
Corporate debt securities |  |  | 33,241 |  |  |  | 1,786 |  |  |  | — |  |  |  | 35,027 |  |  |  | 33,291 |  |  |  | 12 |  |  |  | (673 | ) |  |  | 32,630 |
Total held-to-maturity debt securities |  | $ | 852,824 |  |  | $ | 25,356 |  |  | $ | (371 | ) |  | $ | 877,809 |  |  | $ | 1,020,934 |  |  | $ | 8,993 |  |  | $ | (9,184 | ) |  | $ | 1,020,743 |
Total debt securities |  | $ | 3,030,002 |  |  | $ | 61,977 |  |  | $ | (4,971 | ) |  | $ | 3,087,008 |  |  | $ | 3,162,990 |  |  | $ | 14,854 |  |  | $ | (42,972 | ) |  | $ | 3,134,872 |
At September 30, 2019 and December 31, 2018, there were no holdings of any one issuer, other than U.S. government sponsored entities and its agencies, in an amount greater than 10% of WesBanco’s shareholders’ equity. Equity securities, of which $8.5 million consist of investments in various mutual funds held in grantor trusts formed in connection with the Company’s deferred compensation plan, are recorded at fair value, and totaled $11.6 million and $11.7 million at September 30, 2019 and December 31, 2018, respectively. The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity date at September 30, 2019. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay debt obligations with or without prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are classified in the table below based on their contractual maturity date; however, principal payments are received on a monthly basis.
(unaudited, in thousands) |  | Amortized Cost |  |  | Fair Value |
Available-for-sale debt securities |  |  |  |  |  |  |  |
Less than one year |  | $ | 61,932 |  |  | $ | 61,992 |
1-5 years |  |  | 116,281 |  |  |  | 117,740 |
5-10 years |  |  | 407,897 |  |  |  | 416,454 |
Over 10 years |  |  | 1,591,068 |  |  |  | 1,613,013 |
Total available-for-sale debt securities |  | $ | 2,177,178 |  |  | $ | 2,209,199 |
Held-to-maturity debt securities |  |  |  |  |  |  |  |
Less than one year |  | $ | 18,138 |  |  | $ | 18,201 |
1-5 years |  |  | 127,140 |  |  |  | 130,634 |
5-10 years |  |  | 328,315 |  |  |  | 338,075 |
Over 10 years |  |  | 379,231 |  |  |  | 390,899 |
Total held-to-maturity debt securities |  | $ | 852,824 |  |  | $ | 877,809 |
Total debt securities |  | $ | 3,030,002 |  |  | $ | 3,087,008 |
Securities with aggregate fair values of $2.0 billion at both September 30, 2019 and December 31, 2018 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 $125.2 million and $82.1 million for the nine months ended September 30, 2019 and 2018, respectively. Net unrealized gains (losses) on available-for-sale securities included in accumulated other comprehensive income, net of tax, as of September 30, 2019 and December 31, 2018 were $24.7 million and ($21.5) million, respectively. The following table presents the gross realized gains and losses on sales and calls of available-for-sale and held-to-maturity debt securities, as well as gains and losses on equity securities from both sales and market adjustments from the adoption of ASU 2016-01 effective January 1, 2018, for the three and nine months ended September 30, 2019 and 2018, respectively.
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
(unaudited, in thousands) |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross realized gains |  | $ | 1,096 |  |  | $ | 88 |  |  | $ | 1,443 |  |  | $ | 100 |
Gross realized losses |  |  | (741 | ) |  |  | (13 | ) |  |  | (950 | ) |  |  | (31 | )
Net gains (losses) on debt securities |  | $ | 355 |  |  | $ | 75 |  |  | $ | 493 |  |  | $ | 69 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net unrealized gains (losses) recognized on securities still held |  | $ | (120 | ) |  | $ | 11 |  |  | $ | 748 |  |  | $ | 330 |
Net realized gains (losses) recognized on securities sold |  |  | — |  |  |  | (2 | ) |  |  | 2,559 |  |  |  | 4 |
Net gains (losses) on equity securities |  | $ | (120 | ) |  | $ | 9 |  |  | $ | 3,307 |  |  | $ | 334 |
Net securities gains |  | $ | 235 |  |  | $ | 84 |  |  | $ | 3,800 |  |  | $ | 403 |
The following tables provide information on unrealized losses on debt securities that have been in an unrealized loss position for less than twelve months and twelve months or more as of September 30, 2019 and December 31, 2018, respectively:
|  | September 30, 2019 |
|  | 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 |
U.S. Government sponsored entities and agencies |  | $ | 5,383 |  |  | $ | (17 | ) |  |  | 4 |  |  | $ | 6,781 |  |  | $ | (108 | ) |  |  | 2 |  |  | $ | 12,164 |  |  | $ | (125 | ) |  |  | 6 |
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies |  |  | 347,848 |  |  |  | (1,515 | ) |  |  | 70 |  |  |  | 306,696 |  |  |  | (2,986 | ) |  |  | 128 |  |  |  | 654,544 |  |  |  | (4,501 | ) |  |  | 198 |
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies |  |  | 11,066 |  |  |  | (38 | ) |  |  | 3 |  |  |  | 3,729 |  |  |  | (7 | ) |  |  | 2 |  |  |  | 14,795 |  |  |  | (45 | ) |  |  | 5 |
Obligations of states and political subdivisions |  |  | 12,650 |  |  |  | (39 | ) |  |  | 21 |  |  |  | 7,581 |  |  |  | (132 | ) |  |  | 17 |  |  |  | 20,231 |  |  |  | (171 | ) |  |  | 38 |
Corporate debt securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7,896 |  |  |  | (129 | ) |  |  | 3 |  |  |  | 7,896 |  |  |  | (129 | ) |  |  | 3 |
Total temporarily impaired securities |  | $ | 376,947 |  |  | $ | (1,609 | ) |  |  | 98 |  |  | $ | 332,683 |  |  | $ | (3,362 | ) |  |  | 152 |  |  | $ | 709,630 |  |  | $ | (4,971 | ) |  | $ | 250 |
|  | December 31, 2018 |
|  | 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 |
U.S. Treasury |  | $ | 9,972 |  |  | $ | (7 | ) |  |  | 1 |  |  | $ | — |  |  | $ | — |  |  |  | — |  |  | $ | 9,972 |  |  | $ | (7 | ) |  |  | 1 |
U.S. Government sponsored entities and agencies |  |  | 18,926 |  |  |  | (148 | ) |  |  | 8 |  |  |  | 76,385 |  |  |  | (1,937 | ) |  |  | 14 |  |  |  | 95,311 |  |  |  | (2,085 | ) |  |  | 22 |
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies |  |  | 285,534 |  |  |  | (1,862 | ) |  |  | 44 |  |  |  | 922,698 |  |  |  | (29,829 | ) |  |  | 291 |  |  |  | 1,208,232 |  |  |  | (31,691 | ) |  |  | 335 |
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies |  |  | 9,186 |  |  |  | (18 | ) |  |  | 6 |  |  |  | 111,068 |  |  |  | (2,945 | ) |  |  | 14 |  |  |  | 120,254 |  |  |  | (2,963 | ) |  |  | 20 |
Obligations of states and political subdivisions |  |  | 104,469 |  |  |  | (439 | ) |  |  | 207 |  |  |  | 303,681 |  |  |  | (4,555 | ) |  |  | 513 |  |  |  | 408,150 |  |  |  | (4,994 | ) |  |  | 720 |
Corporate debt securities |  |  | 38,791 |  |  |  | (898 | ) |  |  | 18 |  |  |  | 11,452 |  |  |  | (334 | ) |  |  | 5 |  |  |  | 50,243 |  |  |  | (1,232 | ) |  |  | 23 |
Total temporarily impaired securities |  | $ | 466,878 |  |  | $ | (3,372 | ) |  |  | 284 |  |  | $ | 1,425,284 |  |  | $ | (39,600 | ) |  |  | 837 |  |  | $ | 1,892,162 |  |  | $ | (42,972 | ) |  |  | 1,121 |
Unrealized losses on debt securities in the tables 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, net of taxes, 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 rated above investment grade 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; 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 FHLB of Pittsburgh, Cincinnati and Indianapolis stock totaling $56.3 million and $50.8 million at September 30, 2019 and December 31, 2018, 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.

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