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Fair Value Measurement (Tables)

12 Months Ended

Dec. 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 December 31, 2021 and December 31, 2020:


			December 31, 2021
			Fair Value Measurements Using:
(in thousands)	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)
Recurring fair value measurements
Equity securities	$	13,466	$	13,466	$	—	$	—
Available-for-sale debt securities:
U.S. Treasury		—		—		—		—
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 state 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 derivatives agreements		24,867		—		24,867		—
Total assets recurring fair value measurements	$	3,077,072	$	13,466	$	3,062,113	$	1,493
Other liabilities—interest rate derivatives agreements		26,388		—		26,388		—
Total liabilities recurring fair value measurements	$	26,388	$	—	$	26,388	$	—
Nonrecurring fair value measurements
Individually-evaluated loans	$	13,558	$	—	$	—	$	13,558
Other real estate owned and repossessed assets		—		—		—		—
Total nonrecurring fair value measurements	$	13,558	$	—	$	—	$	13,558


	December 31, 2020
	Fair Value Measurements Using:
(in thousands)	December 31, 2020		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (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 state 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 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
(in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range / Weighted Average
December 31, 2021:
Individually-evaluated loans	$	13,558	Appraisal of collateral (1)	Appraisal adjustments (2)	0.0%/0.0%
				Liquidation expenses (2)	(8.0%)/(8.0%)
December 31, 2020:
Individually-evaluated 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 expenses 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 December 31, 2021
(in thousands)	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (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
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 derivatives		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		—		—
Junior subordinated debt		132,860		109,186		—		109,186		—
Other liabilities—interest rate derivatives		26,388		26,388		—		26,388		—
Accrued interest payable		1,901		1,901		1,901		—		—


					Fair Value Measurements at December 31, 2020
(in thousands)	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (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.

+ References + Details