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WSBC Wesbanco

Filed: 6 May 21, 4:17pm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021  

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                           to                            

Commission File Number 000-08467

 

WESBANCO, INC.

(Exact name of Registrant as specified in its charter)

 

West Virginia

 

55-0571723

(State of incorporation)

 

(IRS Employer Identification No.)

 

 

 

1 Bank Plaza, Wheeling, WV

 

26003

(Address of principal executive offices)

 

(Zip Code)

 

Registrant's telephone number, including area code:  304-234-9000

 

NOT APPLICABLE

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock $2.0833 Par Value

WSBC

NASDAQ Global Select Market

Depositary Shares (each representing 1/40th interest in a share of 6.75% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A)

WSBCP

 

NASDAQ Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes No

As of April 28, 2021, there were 67,315,896 shares of Wesbanco, Inc. common stock, $2.0833 par value, outstanding.

 

 


 

 

WESBANCO, INC.

TABLE OF CONTENTS

 

Item

No.

ITEM

Page

No.

 

 

 

 

PART I - FINANCIAL INFORMATION

 

1

Financial Statements

2

 

Consolidated Balance Sheets at March 31, 2021 (unaudited) and December 31, 2020

2

 

Consolidated Statements of Comprehensive Income for the three months ended March 31, 2021 and 2020 (unaudited)

3

 

Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2021 and 2020 (unaudited)

4

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited)

5

 

Notes to Consolidated Financial Statements (unaudited)

6

 

 

 

2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

31

 

 

 

3

Quantitative and Qualitative Disclosures About Market Risk

51

 

 

 

4

Controls and Procedures

53

 

 

 

 

PART II – OTHER INFORMATION

 

1

Legal Proceedings

54

 

 

 

2

Unregistered Sales of Equity Securities and Use of Proceeds

54

 

 

 

5

Other Information

54

 

 

 

6

Exhibits

55

 

 

 

 

Signatures

56

1


 

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

WESBANCO, INC. CONSOLIDATED BALANCE SHEETS

 

 

 

March 31,

 

 

December 31,

 

(unaudited, in thousands, except shares)

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks, including interest bearing amounts of $550,008 and $721,086, respectively

 

$

759,048

 

 

$

905,447

 

Securities:

 

 

 

 

 

 

 

 

Equity securities, at fair value

 

 

13,123

 

 

 

13,047

 

Available-for-sale debt securities, at fair value

 

 

2,775,212

 

 

 

1,978,136

 

Held-to-maturity debt securities (fair values of $839,872  and $768,183, respectively)

 

 

813,740

 

 

 

731,212

 

Allowance for credit losses, held-to-maturity debt securities

 

 

(290

)

 

 

(326

)

       Net held-to-maturity debt securities

 

 

813,450

 

 

 

730,886

 

Total securities

 

 

3,601,785

 

 

 

2,722,069

 

Loans held for sale

 

 

153,520

 

 

 

168,378

 

Portfolio loans, net of unearned income

 

 

10,703,312

 

 

 

10,789,233

 

Allowance for credit losses - loans

 

 

(160,040

)

 

 

(185,827

)

Net portfolio loans

 

 

10,543,272

 

 

 

10,603,406

 

Premises and equipment, net

 

 

239,863

 

 

 

249,421

 

Accrued interest receivable

 

 

68,896

 

 

 

66,790

 

Goodwill and other intangible assets, net

 

 

1,160,195

 

 

 

1,163,091

 

Bank-owned life insurance

 

 

307,747

 

 

 

306,038

 

Other assets

 

 

223,462

 

 

 

240,970

 

Total Assets

 

$

17,057,788

 

 

$

16,425,610

 

LIABILITIES

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Non-interest bearing demand

 

$

4,460,049

 

 

$

4,070,835

 

Interest bearing demand

 

 

3,126,186

 

 

 

2,839,536

 

Money market

 

 

1,771,703

 

 

 

1,685,927

 

Savings deposits

 

 

2,373,987

 

 

 

2,214,565

 

Certificates of deposit

 

 

1,555,074

 

 

 

1,618,510

 

Total deposits

 

 

13,286,999

 

 

 

12,429,373

 

Federal Home Loan Bank borrowings

 

 

433,984

 

 

 

549,003

 

Other short-term borrowings

 

 

137,218

 

 

 

241,950

 

Subordinated debt and junior subordinated debt

 

 

192,430

 

 

 

192,291

 

Total borrowings

 

 

763,632

 

 

 

983,244

 

Accrued interest payable

 

 

3,224

 

 

 

4,314

 

Other liabilities

 

 

218,411

 

 

 

251,942

 

Total Liabilities

 

 

14,272,266

 

 

 

13,668,873

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Preferred stock, no par value, 1,000,000 shares authorized; 150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, liquidation preference $150,000,000, issued and outstanding at March 31, 2021 and December 31, 2020, respectively

 

 

144,484

 

 

 

144,484

 

Common stock, $2.0833 par value; 100,000,000 shares authorized; 68,081,306 shares issued; 67,282,134 and 67,254,706 shares outstanding at March 31, 2021 and December 31, 2020, respectively

 

 

141,834

 

 

 

141,834

 

Capital surplus

 

 

1,636,103

 

 

 

1,634,815

 

Retained earnings

 

 

879,786

 

 

 

831,688

 

Treasury stock (799,172 and 826,600 shares  - at cost, respectively)

 

 

(24,989

)

 

 

(25,949

)

Accumulated other comprehensive income

 

 

9,803

 

 

 

31,359

 

Deferred benefits for directors

 

 

(1,499

)

 

 

(1,494

)

Total Shareholders' Equity

 

 

2,785,522

 

 

 

2,756,737

 

Total Liabilities and Shareholders' Equity

 

$

17,057,788

 

 

$

16,425,610

 

 

See Notes to Consolidated Financial Statements.

2


WESBANCO, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

For the Three Months

Ended March 31,

 

(unaudited, in thousands, except shares and per share amounts)

 

2021

 

 

2020

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

Loans, including fees

 

$

109,358

 

 

 

119,503

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

Taxable

 

 

11,127

 

 

 

16,986

 

Tax-exempt

 

 

3,910

 

 

 

4,456

 

Total interest and dividends on securities

 

 

15,037

 

 

 

21,442

 

Other interest income

 

 

659

 

 

 

1,503

 

Total interest and dividend income

 

 

125,054

 

 

 

142,448

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

Interest bearing demand deposits

 

 

1,043

 

 

 

3,394

 

Money market deposits

 

 

578

 

 

 

2,352

 

Savings deposits

 

 

264

 

 

 

923

 

Certificates of deposit

 

 

2,370

 

 

 

4,054

 

Total interest expense on deposits

 

 

4,255

 

 

 

10,723

 

Federal Home Loan Bank borrowings

 

 

2,414

 

 

 

8,232

 

Other short-term borrowings

 

 

118

 

 

 

870

 

Subordinated debt and junior subordinated debt

 

 

1,789

 

 

 

2,461

 

Total interest expense

 

 

8,576

 

 

 

22,286

 

NET INTEREST INCOME

 

 

116,478

 

 

 

120,162

 

Provision for credit losses

 

 

(27,958

)

 

 

29,821

 

Net interest income after provision for credit losses

 

 

144,436

 

 

 

90,341

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

Trust fees

 

 

7,631

 

 

 

6,952

 

Service charges on deposits

 

 

4,894

 

 

 

6,617

 

Electronic banking fees

 

 

4,365

 

 

 

4,254

 

Net securities brokerage revenue

 

 

1,524

 

 

 

1,679

 

Bank-owned life insurance

 

 

1,709

 

 

 

1,769

 

Mortgage banking income

 

 

4,264

 

 

 

1,276

 

Net securities gains

 

 

279

 

 

 

1,491

 

Net gain on other real estate owned and other assets

 

 

175

 

 

 

169

 

Other income

 

 

8,367

 

 

 

3,802

 

Total non-interest income

 

 

33,208

 

 

 

28,009

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

Salaries and wages

 

 

36,890

 

 

 

38,910

 

Employee benefits

 

 

10,266

 

 

 

10,373

 

Net occupancy

 

 

7,177

 

 

 

7,084

 

Equipment and software

 

 

6,765

 

 

 

6,039

 

Marketing

 

 

2,384

 

 

 

1,138

 

FDIC insurance

 

 

1,282

 

 

 

2,113

 

Amortization of intangible assets

 

 

2,896

 

 

 

3,374

 

Restructuring and merger-related expense

 

 

851

 

 

 

5,164

 

Other operating expenses

 

 

17,816

 

 

 

17,138

 

Total non-interest expense

 

 

86,327

 

 

 

91,333

 

Income before provision for income taxes

 

 

91,317

 

 

 

27,017

 

Provision for income taxes

 

 

18,202

 

 

 

3,621

 

Net income

 

 

73,115

 

 

 

23,396

 

Preferred stock dividends

 

 

2,531

 

 

 

 

Net income available to common shareholders

 

$

70,584

 

 

$

23,396

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

Basic

 

$

1.05

 

 

$

0.35

 

Diluted

 

$

1.05

 

 

$

0.35

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

Basic

 

 

67,263,714

 

 

 

67,486,550

 

Diluted

 

 

67,355,418

 

 

 

67,587,446

 

DIVIDENDS DECLARED PER COMMON SHARE

 

$

0.33

 

 

$

0.32

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

51,559

 

 

$

63,336

 

 

See Notes to Consolidated Financial Statements.

3


WESBANCO, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

 

 

 

For the Three Months Ended March 31, 2021 and 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Preferred

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

Deferred

 

 

 

 

 

(unaudited, in thousands, except

 

Stock

 

 

Shares

 

 

 

 

 

 

Capital

 

 

Retained

 

 

Treasury

 

 

Comprehensive

 

 

Benefits for

 

 

 

 

 

   shares and per share amounts)

 

Amount

 

 

Outstanding

 

 

Amount

 

 

Surplus

 

 

Earnings

 

 

Stock

 

 

Income (Loss)

 

 

Directors

 

 

Total

 

December 31, 2020

 

$

144,484

 

 

 

67,254,706

 

 

$

141,834

 

 

$

1,634,815

 

 

$

831,688

 

 

$

(25,949

)

 

$

31,359

 

 

$

(1,494

)

 

$

2,756,737

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

73,115

 

 

 

 

 

 

 

 

 

 

 

 

73,115

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,556

)

 

 

 

 

 

(21,556

)

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51,559

 

Common dividends declared ($0.33 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,095

)

 

 

 

 

 

 

 

 

 

 

 

(22,095

)

Preferred dividends declared ($16.875 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,531

)

 

 

 

 

 

 

 

 

 

 

 

(2,531

)

Stock issued for dividend reinvestment

 

 

 

 

 

11,720

 

 

 

 

 

 

 

 

 

(391

)

 

 

391

 

 

 

 

 

 

 

 

 

 

Treasury shares acquired

 

 

 

 

 

(5,135

)

 

 

 

 

 

183

 

 

 

 

 

 

(183

)

 

 

 

 

 

 

 

 

 

Stock options exercised

 

 

 

 

 

20,843

 

 

 

 

 

 

(183

)

 

 

 

 

 

752

 

 

 

 

 

 

 

 

 

569

 

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

1,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,288

 

Deferred benefits for directors- net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

(5

)

March 31, 2021

 

$

144,484

 

 

 

67,282,134

 

 

$

141,834

 

 

$

1,636,103

 

 

$

879,786

 

 

$

(24,989

)

 

$

9,803

 

 

$

(1,499

)

 

$

2,785,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

$

 

 

 

67,824,428

 

 

$

141,827

 

 

$

1,636,966

 

 

$

824,694

 

 

$

(9,463

)

 

$

1,201

 

 

$

(1,304

)

 

$

2,593,921

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,396

 

 

 

 

 

 

 

 

 

 

 

 

23,396

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39,940

 

 

 

 

 

 

39,940

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

63,336

 

Common dividends declared ($0.32 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,435

)

 

 

 

 

 

 

 

 

 

 

 

(21,435

)

Adoption of ASU 2016-13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,591

)

 

 

 

 

 

 

 

 

 

 

 

(26,591

)

Treasury shares acquired

 

 

 

 

 

(786,012

)

 

 

 

 

 

 

 

 

 

 

 

(24,972

)

 

 

 

 

 

 

 

 

(24,972

)

Stock options exercised

 

 

 

 

 

19,739

 

 

 

 

 

 

(276

)

 

 

 

 

 

721

 

 

 

 

 

 

 

 

 

445

 

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

1,370

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,370

 

Deferred benefits for directors- net

 

 

 

 

 

 

 

 

 

 

 

62

 

 

 

 

 

 

 

 

 

 

 

 

(76

)

 

 

(14

)

March 31, 2020

 

$

 

 

 

67,058,155

 

 

$

141,827

 

 

$

1,638,122

 

 

$

800,064

 

 

$

(33,714

)

 

$

41,141

 

 

$

(1,380

)

 

$

2,586,060

 

 

See Notes to Consolidated Financial Statements.

4


WESBANCO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

For the Three Months

Ended March 31,

 

(unaudited, in thousands)

 

2021

 

 

2020

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

$

52,004

 

 

$

32,884

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Net decrease (increase) in loans held for investment

 

 

100,799

 

 

 

(131,110

)

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

Proceeds from sales

 

 

 

 

 

222,668

 

Proceeds from maturities, prepayments and calls

 

 

239,259

 

 

 

157,954

 

Purchases of securities

 

 

(1,068,526

)

 

 

(197,153

)

Held-to-maturity debt securities:

 

 

 

 

 

 

 

 

Proceeds from maturities, prepayments and calls

 

 

27,147

 

 

 

48,093

 

Purchases of securities

 

 

(110,298

)

 

 

(11,734

)

Equity securities:

 

 

 

 

 

 

 

 

Proceeds from sales

 

 

 

 

 

50

 

Proceeds from bank owned life insurance

 

 

 

 

 

10

 

Purchases of premises and equipment – net

 

 

(2,362

)

 

 

(2,925

)

Sale of portfolio loans

 

 

 

 

 

28,262

 

Net cash (used in) provided by investing activities

 

 

(813,981

)

 

 

114,115

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Increase in deposits

 

 

858,853

 

 

 

42,892

 

Proceeds from Federal Home Loan Bank borrowings

 

 

 

 

 

475,000

 

Repayment of Federal Home Loan Bank borrowings

 

 

(115,053

)

 

 

(305,070

)

(Decrease) increase in other short-term borrowings

 

 

(104,732

)

 

 

59,104

 

Principal repayments of finance lease obligations

 

 

(109

)

 

 

(104

)

Decrease in federal funds purchased

 

 

 

 

 

(7,500

)

Repayment of junior subordinated debt

 

 

 

 

 

(6,702

)

Dividends paid to common shareholders

 

 

(21,419

)

 

 

(21,016

)

Dividends paid to preferred shareholders

 

 

(2,531

)

 

 

 

Treasury shares sold (purchased) - net

 

 

569

 

 

 

(24,527

)

Net cash provided by financing activities

 

 

615,578

 

 

 

212,077

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(146,399

)

 

 

359,076

 

Cash, cash equivalents and restricted cash at beginning of the period

 

 

905,447

 

 

 

234,796

 

Cash, cash equivalents and restricted cash at end of the period

 

$

759,048

 

 

$

593,872

 

SUPPLEMENTAL DISCLOSURES

 

 

 

 

 

 

 

 

Interest paid on deposits and other borrowings

 

$

10,719

 

 

$

26,074

 

Income taxes paid

 

 

 

 

 

 

Transfers of loans to other real estate owned

 

 

 

 

 

28

 

Transfers of portfolio loans to loans held for sale

 

 

 

 

 

37,195

 

 

See Notes to Consolidated Financial Statements.

 

5


 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation — The accompanying unaudited interim financial statements of Wesbanco, Inc. and its consolidated subsidiaries (“Wesbanco”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020.

Wesbanco’s interim financial statements have been prepared following the significant accounting policies disclosed in Note 1 of the Notes to the Consolidated Financial Statements of its 2020 Annual Report on Form 10-K filed with the Securities and Exchange Commission.  In the opinion of management, the accompanying interim financial information reflects all adjustments, including normal recurring adjustments, necessary to present fairly Wesbanco’s financial position and results of operations for each of the interim periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation. Such reclassifications had no impact on Wesbanco’s net income and stockholders’ equity. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year.

Recent accounting pronouncements—The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) as noted below.

ASU 2020-04 Reference Rate Reform (Topic 848)

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”. Due to the potential discontinuance of the London Interbank Offered Rate (LIBOR), regulators have undertaken reference rate initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU also provides optional expedients for contract modifications that replace a reference rate affected by reference rate reform. The guidance is effective as of March 12, 2020 through December 31, 2022. Wesbanco is assessing the impact of adopting the new guidance on the consolidated financial statements on an ongoing basis with no material impacts expected at this time.

 

NOTE 2. EARNINGS PER COMMON SHARE

Earnings per common share are calculated as follows:

 

 

 

For the Three Months

Ended March 31,

 

(unaudited, in thousands, except shares and per share amounts)

 

2021

 

 

2020

 

Numerator for both basic and diluted earnings per common share:

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

70,584

 

 

$

23,396

 

Denominator:

 

 

 

 

 

 

 

 

Total average basic common shares outstanding

 

 

67,263,714

 

 

 

67,486,550

 

Effect of dilutive stock options and other stock compensation

 

 

91,704

 

 

 

100,896

 

Total diluted average common shares outstanding

 

 

67,355,418

 

 

 

67,587,446

 

Earnings per common share - basic

 

$

1.05

 

 

$

0.35

 

Earnings per common share - diluted

 

$

1.05

 

 

$

0.35

 

 

As of March 31, 2021 and 2020, respectively, 393,961 and 510,186 options to purchase shares were not included in the computation of net income per diluted share for the three months ended March 31, 2021 and 2020 because the exercise price was greater than the average market price of a common share, therefore, the effect would be antidilutive.

As of March 31, 2021 and 2020, shares related to the 2020 and 2019 total shareholder return plans were not included in the calculation because the effect would be antidilutive.

In addition, 0 performance-based restricted stock was estimated to be awarded as of March 31, 2021 and therefore, was not included in the diluted calculation. As of March 31, 2020, 25,618 shares were estimated to be awarded and those shares were included in the diluted calculation for the three months ended March 31, 2020.

6


NOTE 3. SECURITIES

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

 

 

 

March 31, 2021

 

 

December 31, 2020

 

(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

 

$

29,986

 

 

$

11

 

 

$

 

 

$

29,997

 

 

$

39,975

 

 

$

7

 

 

$

 

 

$

39,982

 

U.S. Government sponsored entities and agencies

 

 

174,472

 

 

 

4,564

 

 

 

(2,706

)

 

 

176,330

 

 

 

204,109

 

 

 

7,715

 

 

 

(142

)

 

 

211,682

 

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

2,123,853

 

 

 

30,901

 

 

 

(13,961

)

 

 

2,140,793

 

 

 

1,230,106

 

 

 

35,979

 

 

 

(1,348

)

 

 

1,264,737

 

Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

284,440

 

 

 

7,962

 

 

 

(721

)

 

 

291,681

 

 

 

308,903

 

 

 

11,464

 

 

 

(269

)

 

 

320,098

 

Obligations of states and political subdivisions

 

 

105,778

 

 

 

6,056

 

 

 

(36

)

 

 

111,798

 

 

 

108,602

 

 

 

7,160

 

 

 

 

 

 

115,762

 

Corporate debt securities

 

 

23,953

 

 

 

660

 

 

 

 

 

 

24,613

 

 

 

24,963

 

 

 

912

 

 

 

 

 

 

25,875

 

Total available-for-sale debt securities

 

$

2,742,482

 

 

$

50,154

 

 

$

(17,424

)

 

$

2,775,212

 

 

$

1,916,658

 

 

$

63,237

 

 

$

(1,759

)

 

$

1,978,136

 

Held-to-maturity debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored entities and agencies

 

$

7,611

 

 

$

106

 

 

$

 

 

$

7,717

 

 

$

7,779

 

 

$

265

 

 

$

 

 

$

8,044

 

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

80,376

 

 

 

2,738

 

 

 

(5

)

 

 

83,109

 

 

 

89,151

 

 

 

3,251

 

 

 

 

 

 

92,402

 

Obligations of states and political subdivisions

 

 

692,616

 

 

 

24,501

 

 

 

(3,811

)

 

 

713,306

 

 

 

601,128

 

 

 

30,173

 

 

 

(59

)

 

 

631,242

 

Corporate debt securities

 

 

33,137

 

 

 

2,603

 

 

 

 

 

 

35,740

 

 

 

33,154

 

 

 

3,341

 

 

 

 

 

 

36,495

 

Total held-to-maturity debt securities

 

$

813,740

 

 

$

29,948

 

 

$

(3,816

)

 

$

839,872

 

 

$

731,212

 

 

$

37,030

 

 

$

(59

)

 

$

768,183

 

Total debt securities

 

$

3,556,222

 

 

$

80,102

 

 

$

(21,240

)

 

$

3,615,084

 

 

$

2,647,870

 

 

$

100,267

 

 

$

(1,818

)

 

$

2,746,319

 

(1)

Total held-to-maturity debt securities are presented on the balance sheet net of their allowance for credit losses totaling $0.3 million at March 31, 2021 and December 31, 2020.

 

At March 31, 2021 and December 31, 2020, there were 0 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 $10.1 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 $13.1 million and $13.0 million at March 31, 2021 and December 31, 2020, 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 March 31, 2021.  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, regular principal payments and prepayments of principal are received on a monthly basis.  

 

(unaudited, in thousands)

 

Amortized Cost

 

 

Fair Value

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

Less than one year

 

$

47,465

 

 

$

47,583

 

1-5 years

 

 

145,739

 

 

 

152,800

 

5-10 years

 

 

358,854

 

 

 

366,119

 

Over 10 years

 

 

2,190,424

 

 

 

2,208,710

 

Total available-for-sale debt securities

 

$

2,742,482

 

 

$

2,775,212

 

Held-to-maturity debt securities

 

 

 

 

 

 

 

 

Less than one year

 

$

11,759

 

 

$

11,872

 

1-5 years

 

 

133,053

 

 

 

140,315

 

5-10 years

 

 

228,148

 

 

 

237,907

 

Over 10 years

 

 

440,780

 

 

 

449,778

 

Total held-to-maturity debt securities

 

$

813,740

 

 

$

839,872

 

Total debt securities

 

$

3,556,222

 

 

$

3,615,084

 

 

7


 

Securities with an aggregate fair value of $1.8 billion at March 31, 2021 and December 31, 2020, 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 $0 million and $222.7 million for the three months ended March 31, 2021 and 2020, respectively.  Net unrealized gains on available-for-sale securities included in accumulated other comprehensive income, net of tax, as of March 31, 2021 and December 31, 2020 were $24.8 million and $46.9 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, for the three months ended March 31, 2021 and 2020, respectively.  All gains and losses presented in the table below are included in the net securities gains (losses) line item of the income statement.  For those equity securities relating to the key officer and director deferred compensation plan, the corresponding change in the obligation to the participant is recognized in employee benefits expense.

 

 

 

For the Three Months

Ended March 31,

 

(unaudited, in thousands)

 

2021

 

 

2020

 

Debt securities:

 

 

 

 

 

 

 

 

Gross realized gains

 

$

140

 

 

$

3,335

 

Gross realized losses

 

 

(39

)

 

 

(1,031

)

Net gains on debt securities

 

$

101

 

 

$

2,304

 

Equity securities:

 

 

 

 

 

 

 

 

Net unrealized gains (losses) recognized on securities still held

 

$

178

 

 

$

(805

)

Net realized losses recognized on securities sold

 

 

 

 

 

(8

)

Net gains (losses) on equity securities

 

$

178

 

 

$

(813

)

Net securities gains

 

$

279

 

 

$

1,491

 

The corporate and municipal bonds in Wesbanco’s held-to-maturity debt portfolio are analyzed quarterly to determine if an allowance for current expected credit losses is warranted.  Wesbanco uses a database of historical financials of all corporate and municipal issuers and actual historic default and recovery rates on rated and non-rated transactions to estimate expected credit losses on an individual security basis. The expected credit losses are adjusted quarterly and are recorded in an allowance for expected credit losses on the balance sheet, which is deducted from the amortized cost basis of the held-to-maturity portfolio as a contra asset. The losses are recorded on the income statement in the provision for credit losses. Accrued interest receivable on held-to-maturity securities, which was $6.3 million and $5.3 million as of March 31, 2021 and December 31, 2020, respectively, is excluded from the estimate of credit losses. Held-to-maturity investments in U.S. Government sponsored entities and agencies as well as mortgage-backed securities and collateralized mortgage obligations, which are all either issued by a direct governmental entity or a government-sponsored entity, have no historical evidence supporting expected credit losses; therefore, Wesbanco has estimated these losses at 0, and will monitor this assumption in the future for any economical or governmental policies that could affect this assumption.  

The following table provides a roll-forward of the allowance for credit losses on held-to-maturity securities for the three months ended March 31, 2021 and March 31, 2020, respectively:

 

 

Allowance for Credit Losses By Category

 

 

For the Three Months Ended March 31, 2021 and 2020

 

 

 

 

 

Residential mortgage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-backed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

securities and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

collateralized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mortgage obligations

 

Obligations of

 

 

 

 

 

 

 

 

U.S. Government

 

of government

 

state and

 

Corporate

 

 

 

 

 

sponsored

 

sponsored entities

 

political

 

debt

 

 

 

 

(unaudited, in thousands)

entities and agencies

 

and agencies

 

subdivisions

 

Securities

 

Total

 

Balance at December 31, 2020

$

 

$

 

$

130

 

$

196

 

$

326

 

Current period provision

 

 

 

 

 

(12

)

 

(24

)

 

(36

)

Write-offs

 

 

 

 

 

 

 

 

 

 

Recoveries

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2021

$

 

$

 

$

118

 

$

172

 

$

290

 

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2019

$

 

$

 

$

 

$

 

$

 

Impact of adopting ASC 326

 

 

 

 

 

96

 

 

133

 

 

229

 

Current period provision

 

 

 

 

 

2

 

 

5

 

 

7

 

Write-offs

 

 

 

 

 

 

 

 

 

 

Recoveries

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2020

$

 

$

 

$

98

 

$

138

 

$

236

 

 

8


 

The following tables provide information on unrealized losses on available-for-sale debt securities that have been in an unrealized loss position for less than twelve months and twelve months or more, for which an allowance for credit losses has not been recorded, as of March 31, 2021 and December 31, 2020, respectively:

 

 

 

March 31, 2021

 

 

 

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

 

$

56,270

 

 

$

(2,706

)

 

 

6

 

 

$

 

 

$

 

 

 

 

 

$

56,270

 

 

$

(2,706

)

 

 

6

 

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

973,961

 

 

 

(13,879

)

 

 

98

 

 

 

3,531

 

 

 

(82

)

 

 

4

 

 

 

977,492

 

 

 

(13,961

)

 

 

102

 

Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

94,186

 

 

 

(721

)

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

94,186

 

 

 

(721

)

 

 

9

 

Obligations of state and political subdivisions

 

 

3,767

 

 

 

(36

)

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

3,767

 

 

 

(36

)

 

 

1

 

Total

 

$

1,128,184

 

 

$

(17,342

)

 

 

114

 

 

$

3,531

 

 

$

(82

)

 

 

4

 

 

$

1,131,715

 

 

$

(17,424

)

 

$

118

 

 

 

 

December 31, 2020

 

 

 

Less than 12 months

 

 

12 months or more

 

 

Total

 

(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

 

$

18,308

 

 

$

(142

)

 

 

2

 

 

$

 

 

$

 

 

 

 

 

$

18,308

 

 

$

(142

)

 

 

2

 

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

224,448

 

 

 

(1,227

)

 

 

41

 

 

 

4,136

 

 

 

(121

)

 

 

3

 

 

 

228,584

 

 

 

(1,348

)

 

 

44

 

Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

 

 

97,266

 

 

 

(269

)

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

97,266

 

 

 

(269

)

 

 

10

 

Obligations of states and political subdivisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

340,022

 

 

$

(1,638

)

 

 

53

 

 

$

4,136

 

 

$

(121

)

 

 

3

 

 

$

344,158

 

 

$

(1,759

)

 

 

56

 

Unrealized losses on debt securities in the table above represents 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 do not require an allowance for credit losses relating to these securities to be 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 Indianapolis stock totaling $29.3 million and $34.0 million at March 31, 2021 and December 31, 2020, 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.

 

  

9


 

 

NOTE 4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES

The recorded investment in loans is presented in the Consolidated Balance Sheets net of deferred loan fees and costs, and discounts on purchased loans. Net deferred loan income was $13.3 million and $6.2 million at March 31, 2021 and December 31, 2020, respectively.  At March 31, 2021 and December 31, 2020, respectively, the balance included $21.4 and $13.8 million of net deferred income from PPP loans. The un-accreted discount on purchased loans from acquisitions was $35.9 million at March 31, 2021 and $39.4 million at December 31, 2020.

 

 

 

March 31,

 

 

December 31,

 

(unaudited, in thousands)

 

2021

 

 

2020

 

Commercial real estate:

 

 

 

 

 

 

 

 

Land and construction

 

$

642,017

 

 

$

668,277

 

Improved property

 

 

5,070,725

 

 

 

5,037,115

 

Total commercial real estate

 

 

5,712,742

 

 

 

5,705,392

 

Commercial and industrial

 

 

1,598,921

 

 

 

1,681,182

 

Commercial and industrial - PPP

 

 

823,814

 

 

 

726,256

 

Residential real estate

 

 

1,644,422

 

 

 

1,720,961

 

Home equity

 

 

634,018

 

 

 

646,387

 

Consumer

 

 

289,395

 

 

 

309,055

 

Total portfolio loans

 

 

10,703,312

 

 

 

10,789,233

 

Loans held for sale

 

 

153,520

 

 

 

168,378

 

Total loans

 

$

10,856,832

 

 

$

10,957,611

 

 

The allowance for credit losses under the current expected credit losses methodology (“CECL”) is calculated utilizing the PD / LGD, which is then discounted to net present value. PD is the probability the asset will default within a given time frame and LGD is the percentage of the asset not expected to be collected due to default. The primary macroeconomic drivers of the quantitative model include forecasts of national unemployment and interest rates, as well as modeling adjustments for changes in prepayment speeds, loan risk grades, portfolio mix, concentrations and loan growth. For the calculation as of March 31, 2021, the one-year forecast was based upon a blended rate from two nationally-recognized published economic forecasts through March 31, 2021, and is primarily driven by the national unemployment and interest rate spread forecasts. Wesbanco’s blended forecast of national unemployment, at quarter end, was projected to peak at 5.8% in the second quarter, and subsequently decrease to an average of 4.8% over the remainder of the forecast period. The calculation utilized a one-year reversion period back to the Company’s historical loss rate by loan classification.  Included in the qualitative factors were COVID-19 pandemic factors related to the transient credit risk not covered by the traditional allowance process, adjusted to Wesbanco’s regional footprint, deferred interest on modified loans, and hospitality industry concentration. Wesbanco made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses because the Company has a robust policy in place to reverse or write-off accrued interest when loans are placed on non-accrual. However, Wesbanco does have a $0.2 million reserve on the accrued interest related to loan modifications allowed under the CARES Act due to the timing and nature of these modifications. As of March 31, 2021, accrued interest receivable for loans was $53.5 million, including $24.9 million related to COVID-19 loan modifications as permitted under the CARES Act.

 

 

10


 

The following tables summarize changes in the allowance for credit losses applicable to each category of the loan portfolio:

 

 

 

Allowance for Credit Losses By Category

 

 

 

For the Three Months Ended March 31, 2021 and 2020

 

(unaudited, in thousands)

 

Commercial

Real Estate -

Land and

Construction

 

 

Commercial

Real Estate-

Improved

Property

 

 

Commercial

& Industrial

 

 

Residential

Real Estate

 

 

Home

Equity

 

 

Consumer

 

 

Deposit

Overdrafts

 

 

Total

 

Balance at December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit

   losses - loans

 

$

10,841

 

 

$

110,652

 

 

$

37,850

 

 

$

17,851

 

 

$

1,487

 

 

$

6,507

 

 

$

639

 

 

$

185,827

 

Allowance for credit

   losses - loan commitments

 

 

6,508

 

 

 

712

 

 

 

1,275

 

 

 

955

 

 

 

45

 

 

 

19

 

 

 

 

 

 

9,514

 

Total beginning allowance for credit

   losses - loans and loan

   commitments

 

 

17,349

 

 

 

111,364

 

 

 

39,125

 

 

 

18,806

 

 

 

1,532

 

 

 

6,526

 

 

 

639

 

 

 

195,341

 

Provision for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

(3,538

)

 

 

(11,420

)

 

 

(4,256

)

 

 

(4,177

)

 

 

(394

)

 

 

(1,510

)

 

 

156

 

 

 

(25,139

)

Provision for loan commitments

 

 

(2,508

)

 

 

(504

)

 

 

308

 

 

 

(86

)

 

 

5

 

 

 

2

 

 

 

 

 

 

(2,783

)

Total provision for credit

   losses - loans and loan

   commitments

 

 

(6,046

)

 

 

(11,924

)

 

 

(3,948

)

 

 

(4,263

)

 

 

(389

)

 

 

(1,508

)

 

 

156

 

 

 

(27,922

)

Charge-offs

 

 

(18

)

 

 

(19

)

 

 

(750

)

 

 

(371

)

 

 

(174

)

 

 

(927

)

 

 

(201

)

 

 

(2,460

)

Recoveries

 

 

55

 

 

 

528

 

 

 

440

 

 

 

135

 

 

 

79

 

 

 

462

 

 

 

113

 

 

 

1,812

 

Net charge-offs

 

 

37

 

 

 

509

 

 

 

(310

)

 

 

(236

)

 

 

(95

)

 

 

(465

)

 

 

(88

)

 

 

(648

)

Balance at March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit

   losses - loans

 

 

7,340

 

 

 

99,741

 

 

 

33,284

 

 

 

13,438

 

 

 

998

 

 

 

4,532

 

 

 

707

 

 

 

160,040

 

Allowance for credit

   losses - loan commitments

 

 

4,000

 

 

 

208

 

 

 

1,583

 

 

 

869

 

 

 

50

 

 

 

21

 

 

 

 

 

 

6,731

 

Total ending allowance for credit

   losses - loans and loan

   commitments

 

$

11,340

 

 

$

99,949

 

 

$

34,867

 

 

$

14,307

 

 

$

1,048

 

 

$

4,553

 

 

$

707

 

 

$

166,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit

   losses - loans

 

$

4,949

 

 

$

20,293

 

 

$

14,116

 

 

$

4,311

 

 

$

4,422

 

 

$

2,951

 

 

$

1,387

 

 

$

52,429

 

Allowance for credit

   losses - loan commitments

 

 

235

 

 

 

22

 

 

 

311

 

 

 

15

 

 

 

250

 

 

 

41

 

 

 

 

 

 

874

 

Total beginning allowance for credit

   losses - loans and loan

   commitments

 

 

5,184

 

 

 

20,315

 

 

 

14,427

 

 

 

4,326

 

 

 

4,672

 

 

 

2,992

 

 

 

1,387

 

 

 

53,303

 

Impact of adopting ASC 326

 

 

1,524

 

 

 

13,078

 

 

 

22,357

 

 

 

5,630

 

 

 

(3,936

)

 

 

2,576

 

 

 

213

 

 

 

41,442

 

Provision for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

��

2,564

 

 

 

20,585

 

 

 

5,632

 

 

 

237

 

 

 

646

 

 

 

(1,241

)

 

 

(351

)

 

 

28,072

 

Provision for loan commitments

 

 

2,274

 

 

 

 

 

 

(582

)

 

 

49

 

 

 

2

 

 

 

 

 

 

 

 

 

1,743

 

Total provision for credit

   losses - loans and loan

   commitments

 

 

4,838

 

 

 

20,585

 

 

 

5,050

 

 

 

286

 

 

 

648

 

 

 

(1,241

)

 

 

(351

)

 

 

29,815

 

Charge-offs

 

 

(1

)

 

 

(1,398

)

 

 

(2,714

)

 

 

(386

)

 

 

(443

)

 

 

(856

)

 

 

(328

)

 

 

(6,126

)

Recoveries

 

 

8

 

 

 

293

 

 

 

107

 

 

 

272

 

 

 

172

 

 

 

415

 

 

 

143

 

 

 

1,410

 

Net charge-offs

 

 

7

 

 

 

(1,105

)

 

 

(2,607

)

 

 

(114

)

 

 

(271

)

 

 

(441

)

 

 

(185

)

 

 

(4,716

)

Balance at March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit

   losses - loans

 

 

6,442

 

 

 

52,873

 

 

 

39,227

 

 

 

9,684

 

 

 

1,096

 

 

 

3,886

 

 

 

1,064

 

 

 

114,272

 

Allowance for credit

   losses - loan commitments

 

 

5,111

 

 

 

 

 

 

 

 

 

444

 

 

 

17

 

 

 

 

 

 

 

 

 

5,572

 

Total ending allowance for credit

   losses - loans and loan

   commitments

 

$

11,553

 

 

$

52,873

 

 

$

39,227

 

 

$

10,128

 

 

$

1,113

 

 

$

3,886

 

 

$

1,064

 

 

$

119,844

 

 

11


 

The following tables present the allowance for credit losses and recorded investments in loans by category, as of each period-end:

 

 

 

Allowance for Credit Losses and Recorded Investment in Loans

 

(unaudited, in thousands)

 

Commercial

Real Estate-

Land and

Construction

 

 

Commercial

Real Estate-

Improved

Property

 

 

Commercial

and

Industrial

 

 

Residential

Real

Estate

 

 

Home

Equity

 

 

Consumer

 

 

Deposit

Over-

drafts

 

 

Total

 

March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually-evaluated

 

$

503

 

 

$

4,035

 

 

$

1,501

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

6,039

 

Loans collectively-evaluated

 

 

6,837

 

 

 

95,706

 

 

 

31,783

 

 

 

13,438

 

 

 

998

 

 

 

4,532

 

 

 

707

 

 

 

154,001

 

Loan commitments

 

 

4,000

 

 

 

208

 

 

 

1,583

 

 

 

869

 

 

 

50

 

 

 

21

 

 

 

 

 

 

6,731

 

Total allowance for credit

   losses - loans and commitments

 

$

11,340

 

 

$

99,949

 

 

$

34,867

 

 

$

14,307

 

 

$

1,048

 

 

$

4,553

 

 

$

707

 

 

$

166,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually-evaluated for credit

   losses(1)

 

$

1,125

 

 

$

40,158

 

 

$

1,838

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

43,121

 

Collectively-evaluated for credit

   losses

 

 

640,892

 

 

 

5,030,567

 

 

 

2,420,897

 

 

 

1,644,422

 

 

 

634,018

 

 

 

289,395

 

 

 

 

 

 

10,660,191

 

Total portfolio loans

 

$

642,017

 

 

$

5,070,725

 

 

$

2,422,735

 

 

$

1,644,422

 

 

$

634,018

 

 

$

289,395

 

 

$

 

 

$

10,703,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually-evaluated

 

$

602

 

 

$

4,196

 

 

$

1,484

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

6,282

 

Loans collectively-evaluated

 

 

10,239

 

 

 

106,456

 

 

 

36,366

 

 

 

17,851

 

 

 

1,487

 

 

 

6,507

 

 

 

639

 

 

 

179,545

 

Loan commitments

 

 

6,508

 

 

 

712

 

 

 

1,275

 

 

 

955

 

 

 

45

 

 

 

19

 

 

 

 

 

 

9,514

 

Total allowance for credit

   losses - loans and commitments

 

$

17,349

 

 

$

111,364

 

 

$

39,125

 

 

$

18,806

 

 

$

1,532

 

 

$

6,526

 

 

$

639

 

 

$

195,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually-evaluated for credit

   losses(1)

 

$

1,455

 

 

$

40,372

 

 

$

2,863

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

44,690

 

Collectively-evaluated for credit

   losses

 

 

666,822

 

 

 

4,996,743

 

 

 

2,404,575

 

 

 

1,720,961

 

 

 

646,387

 

 

 

309,055

 

 

 

 

 

 

10,744,543

 

Total portfolio loans

 

$

668,277

 

 

$

5,037,115

 

 

$

2,407,438

 

 

$

1,720,961

 

 

$

646,387

 

 

$

309,055

 

 

$

 

 

$

10,789,233

 

 

(1)

Commercial loans greater than $1 million that are reported as non-accrual or as a TDR are individually evaluated for credit loss.

Commercial loan risk grades are determined based on an evaluation of the relevant characteristics of each loan, assigned at inception and adjusted thereafter at any time to reflect changes in the risk profile throughout the life of each loan.  The primary factors used to determine the risk grade are the sufficiency, reliability and sustainability of the primary source of repayment and overall financial strength of the borrower.  The rating system more heavily weights the debt service coverage, leverage and loan to value factors to derive the risk grade.  Other factors that are considered at a lesser weighting include management, industry or property type risks, payment history, collateral or guarantees.

Commercial real estate – land and construction consists of loans to finance investments in vacant land, land development, construction of residential housing, and construction of commercial buildings.  Commercial real estate – improved property consists of loans for the purchase or refinance of all types of improved owner-occupied and investment properties.  Factors that are considered in assigning the risk grade vary depending on the type of property financed.  The risk grade assigned to construction and development loans is based on the overall viability of the project, the experience and financial capacity of the developer or builder to successfully complete the project, project specific and market absorption rates and comparable property values, and the amount of pre-sales for residential housing construction or pre-leases for commercial investment property.  The risk grade assigned to commercial investment property loans is based primarily on the adequacy of the net operating income generated by the property to service the debt (“debt service coverage”), the loan to appraised value, the type, quality, industry and mix of tenants, and the terms of leases.  The risk grade assigned to owner-occupied commercial real estate is based primarily on global debt service coverage and the leverage of the business, but may also consider the industry in which the business operates, the business’ specific competitive advantages or disadvantages, collateral margins and the quality and experience of management.  

Commercial and industrial (“C&I”) loans consist of revolving lines of credit to finance accounts receivable, inventory and other general business purposes; term loans to finance fixed assets other than real estate, and letters of credit to support trade, insurance or governmental requirements for a variety of businesses.  Most C&I borrowers are privately-held companies with annual sales up to $100 million. Primary factors that are considered in risk rating C&I loans include debt service coverage and leverage.  Other factors including operating trends, collateral coverage along with management experience are also considered.

12


Pass loans are those that exhibit a history of positive financial results that are at least comparable to the average for their industry or type of real estate.  The primary source of repayment is acceptable and these loans are expected to perform satisfactorily during most economic cycles.  Pass loans typically have no significant external factors that are expected to adversely affect these borrowers more than others in the same industry or property type.  Any minor unfavorable characteristics of these loans are outweighed or mitigated by other positive factors including but not limited to adequate secondary or tertiary sources of repayment.

Criticized loans, considered as compromised, have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the bank's credit position at some future date. Criticized loans are not adversely classified by the banking regulators and do not expose the bank to sufficient risk to warrant adverse classification.

Classified loans, considered as substandard and doubtful, are equivalent to the classifications used by banking regulators.  Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected.  These loans may or may not be reported as non-accrual.  Doubtful loans have all the weaknesses inherent in those classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. These loans are reported as non-accrual.

The following tables summarize commercial loans by their assigned risk grade:

 

 

 

Commercial Loans by Internally Assigned Risk Grade

 

(unaudited, in thousands)

 

Commercial

Real Estate-

Land and

Construction

 

 

Commercial

Real Estate-

Improved

Property

 

 

Commercial

& Industrial

 

 

Total

Commercial

Loans

 

As of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

634,835

 

 

$

4,679,257

 

 

$

2,365,558

 

 

$

7,679,650

 

Criticized - compromised

 

 

5,360

 

 

 

297,801

 

 

 

37,782

 

 

 

340,943

 

Classified - substandard

 

 

1,822

 

 

 

93,667

 

 

 

19,395

 

 

 

114,884

 

Classified - doubtful

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

642,017

 

 

$

5,070,725

 

 

$

2,422,735

 

 

$

8,135,477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

657,435

 

 

$

4,609,726

 

 

$

2,350,724

 

 

$

7,617,885

 

Criticized - compromised

 

 

7,397

 

 

 

320,301

 

 

 

34,597

 

 

 

362,295

 

Classified - substandard

 

 

3,445

 

 

 

107,088

 

 

 

22,117

 

 

 

132,650

 

Classified - doubtful

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

668,277

 

 

$

5,037,115

 

 

$

2,407,438

 

 

$

8,112,830

 

 

Residential real estate, home equity and consumer loans are not assigned internal risk grades other than as required by regulatory guidelines that are based primarily on the age of past due loans.  Wesbanco primarily evaluates the credit quality of residential real estate, home equity and consumer loans based on repayment performance and historical loss rates.  The aggregate amount of residential real estate, home equity and consumer loans classified as substandard in accordance with regulatory guidelines was $29.4 million at March 31, 2021 and $27.7 million at December 31, 2020, of which $5.5 million and $4.1 million were accruing, for each period, respectively. The aggregate amount of residential real estate, home equity and consumer loans classified as substandard, as well as $28.3 million and $28.7 million of unfunded commercial loan commitments are not included in the tables above at March 31, 2021 and December 31, 2020, respectively.

13


The following tables summarize the age analysis of all categories of loans:

 

 

 

Age Analysis of Loans

 

(unaudited, in thousands)

 

Current

 

 

30-59

Days

Past Due

 

 

60-89

Days

Past Due

 

 

90 Days

or More

Past Due

 

 

Total

Past Due

 

 

Total

Loans

 

 

90 Days

or More

Past Due and

Accruing (1)

 

As of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

639,378

 

 

$

1,120

 

 

$

759

 

 

$

760

 

 

$

2,639

 

 

$

642,017

 

 

$

641

 

Improved property

 

 

5,055,419

 

 

 

4,041

 

 

 

1,984

 

 

 

9,281

 

 

 

15,306

 

 

 

5,070,725

 

 

 

1,955

 

Total commercial real estate

 

 

5,694,797

 

 

 

5,161

 

 

 

2,743

 

 

 

10,041

 

 

 

17,945

 

 

 

5,712,742

 

 

 

2,596

 

Commercial and industrial

 

 

2,408,663

 

 

 

4,823

 

 

 

2,657

 

 

 

6,592

 

 

 

14,072

 

 

 

2,422,735

 

 

 

5,314

 

Residential real estate

 

 

1,625,328

 

 

 

2,713

 

 

 

1,589

 

 

 

14,792

 

 

 

19,094

 

 

 

1,644,422

 

 

 

4,007

 

Home equity

 

 

628,773

 

 

 

1,213

 

 

 

197

 

 

 

3,835

 

 

 

5,245

 

 

 

634,018

 

 

 

784

 

Consumer

 

 

287,395

 

 

 

1,428

 

 

 

340

 

 

 

232

 

 

 

2,000

 

 

 

289,395

 

 

 

123

 

Total portfolio loans

 

 

10,644,956

 

 

 

15,338

 

 

 

7,526

 

 

 

35,492

 

 

 

58,356

 

 

 

10,703,312

 

 

 

12,824

 

Loans held for sale

 

 

153,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

153,520

 

 

 

 

Total loans

 

$

10,798,476

 

 

$

15,338

 

 

$

7,526

 

 

$

35,492

 

 

$

58,356

 

 

$

10,856,832

 

 

$

12,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans included above are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

$

9,960

 

 

$

940

 

 

$

1,100

 

 

$

22,575

 

 

$

24,615

 

 

$

34,575

 

 

 

 

 

TDRs accruing interest (1)

 

 

3,248

 

 

 

63

 

 

 

159

 

 

 

93

 

 

 

315

 

 

 

3,563

 

 

 

 

 

Total nonperforming loans

 

$

13,208

 

 

$

1,003

 

 

$

1,259

 

 

$

22,668

 

 

$

24,930

 

 

$

38,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

664,990

 

 

$

582

 

 

$

2,276

 

 

$

429

 

 

$

3,287

 

 

$

668,277

 

 

$

288

 

Improved property

 

 

5,016,812

 

 

 

4,876

 

 

 

4,118

 

 

 

11,309

 

 

 

20,303

 

 

 

5,037,115

 

 

 

2,713

 

Total commercial real estate

 

 

5,681,802

 

 

 

5,458

 

 

 

6,394

 

 

 

11,738

 

 

 

23,590

 

 

 

5,705,392

 

 

 

3,001

 

Commercial and industrial

 

 

2,395,844

 

 

 

4,372

 

 

 

2,197

 

 

 

5,025

 

 

 

11,594

 

 

 

2,407,438

 

 

 

1,899

 

Residential real estate

 

 

1,698,636

 

 

 

2,614

 

 

 

5,654

 

 

 

14,057

 

 

 

22,325

 

 

 

1,720,961

 

 

 

2,863

 

Home equity

 

 

639,319

 

 

 

2,414

 

 

 

775

 

 

 

3,879

 

 

 

7,068

 

 

 

646,387

 

 

 

706

 

Consumer

 

 

305,483

 

 

 

1,998

 

 

 

1,031

 

 

 

543

 

 

 

3,572

 

 

 

309,055

 

 

 

377

 

Total portfolio loans

 

 

10,721,084

 

 

 

16,856

 

 

 

16,051

 

 

 

35,242

 

 

 

68,149

 

 

 

10,789,233

 

 

 

8,846

 

Loans held for sale

 

 

168,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

168,378

 

 

 

 

Total loans

 

$

10,889,462

 

 

$

16,856

 

 

$

16,051

 

 

$

35,242

 

 

$

68,149

 

 

$

10,957,611

 

 

$

8,846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans included above are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

$

9,560

 

 

$

630

 

 

$

466

 

 

$

26,224

 

 

$

27,320

 

 

$

36,880

 

 

 

 

 

TDRs accruing interest (1)

 

 

3,540

 

 

 

63

 

 

 

152

 

 

 

172

 

 

 

387

 

 

 

3,927

 

 

 

 

 

Total nonperforming loans

 

$

13,100

 

 

$

693

 

 

$

618

 

 

$

26,396

 

 

$

27,707

 

 

$

40,807

 

 

 

 

 

 

(1)

Loans 90 days or more past due and accruing interest exclude TDRs 90 days or more past due and accruing interest.

14


 

The following tables summarize nonperforming loans:

 

 

 

Nonperforming Loans

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

Unpaid

 

 

 

 

 

 

 

 

 

 

Unpaid

 

 

 

 

 

 

 

 

 

 

 

Principal

 

 

Recorded

 

 

Related

 

 

Principal

 

 

Recorded

 

 

Related

 

(unaudited, in thousands)

 

Balance (1)

 

 

Investment

 

 

Allowance

 

 

Balance (1)

 

 

Investment

 

 

Allowance

 

With no related specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

138

 

 

$

120

 

 

$

 

 

$

469

 

 

$

469

 

 

$

 

Improved property

 

 

8,719

 

 

 

7,349

 

 

 

 

 

 

9,597

 

 

 

8,055

 

 

 

Commercial and industrial

 

 

1,860

 

 

 

1,675

 

 

 

 

 

 

4,401

 

 

 

3,413

 

 

 

Residential real estate

 

 

23,605

 

 

 

20,990

 

 

 

 

 

 

23,055

 

 

 

20,704

 

 

 

Home equity

 

 

6,518

 

 

 

5,569

 

 

 

 

 

 

6,635

 

 

 

5,708

 

 

 

Consumer

 

 

593

 

 

 

351

 

 

 

 

 

 

602

 

 

 

364

 

 

 

Total nonperforming loans without a specific allowance

 

 

41,433

 

 

 

36,054

 

 

 

 

 

 

44,759

 

 

 

38,713

 

 

 

 

With a specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Improved property

 

 

2,094

 

 

 

2,084

 

 

 

175

 

 

 

2,094

 

 

 

2,094

 

 

 

136

 

Commercial and industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming loans with a specific allowance

 

 

2,094

 

 

 

2,084

 

 

 

175

 

 

 

2,094

 

 

 

2,094

 

 

 

136

 

Total nonperforming loans

 

$

43,527

 

 

$

38,138

 

 

$

175

 

 

$

46,853

 

 

$

40,807

 

 

$

136

 

 

(1)

The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off and fair market value adjustments on acquired nonperforming loans.

 

 

 

Nonperforming Loans

 

 

 

For the Three Months Ended

 

 

 

March 31, 2021

 

 

March 31, 2020

 

 

 

Average

 

 

Interest

 

 

Average

 

 

Interest

 

 

 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

 

(unaudited, in thousands)

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

With no related specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

295

 

 

$

 

 

$

393

 

 

$

 

Improved property

 

 

7,702

 

 

 

9

 

 

 

5,501

 

 

 

20

 

Commercial and industrial

 

 

2,544

 

 

 

1

 

 

 

8,570

 

 

 

3

 

Residential real estate

 

 

20,847

 

 

 

39

 

 

 

18,470

 

 

 

55

 

Home equity

 

 

5,639

 

 

 

6

 

 

 

5,811

 

 

 

6

 

Consumer

 

 

358

 

 

 

 

 

 

390

 

 

 

1

 

Total nonperforming loans without a specific allowance

 

 

37,385

 

 

 

55

 

 

 

39,135

 

 

 

85

 

With a specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

 

 

 

 

 

 

 

 

 

 

Improved property

 

 

2,089

 

 

 

 

 

 

3,270

 

 

 

 

Commercial and industrial

 

 

 

 

 

 

 

 

96

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

2,196

 

 

 

 

Home equity

 

 

 

 

 

 

 

 

352

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

27

 

 

 

 

Total nonperforming loans with a specific allowance

 

 

2,089

 

 

 

 

 

 

5,941

 

 

 

 

Total nonperforming loans

 

$

39,474

 

 

$

55

 

 

$

45,076

 

 

$

85

 

 

15


 

The following tables present the recorded investment in non-accrual loans and TDRs:

 

 

 

Non-accrual Loans (1)

 

 

 

March 31,

 

 

December 31,

 

(unaudited, in thousands)

 

2021

 

 

2020

 

Commercial real estate:

 

 

 

 

 

 

 

 

Land and construction

 

$

120

 

 

$

469

 

Improved property

 

 

9,007

 

 

 

9,494

 

Total commercial real estate

 

 

9,127

 

 

 

9,963

 

Commercial and industrial

 

 

1,571

 

 

 

3,302

 

Residential real estate

 

 

18,358

 

 

 

17,925

 

Home equity

 

 

5,181

 

 

 

5,345

 

Consumer

 

 

338

 

 

 

345

 

Total

 

$

34,575

 

 

$

36,880

 

 

(1)

At March 31, 2021 and December 31, 2020, there was 1 borrower with a loan balance greater than $1.0 million totaling $2.1 million.  Total non-accrual loans include loans that are also restructured.  Such loans are also set forth in the following table as non-accrual TDRs.

 

 

 

TDRs

 

 

 

March 31, 2021

 

 

December 31, 2020

 

(unaudited, in thousands)

 

Accruing

 

 

Non-Accrual

 

 

Total

 

 

Accruing

 

 

Non-Accrual

 

 

Total

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Improved property

 

 

426

 

 

 

157

 

 

 

583

 

 

 

655

 

 

 

165

 

 

 

820

 

Total commercial real estate

 

 

426

 

 

 

157

 

 

 

583

 

 

 

655

 

 

 

165

 

 

 

820

 

Commercial and industrial

 

 

104

 

 

 

 

 

 

104

 

 

 

111

 

 

 

 

 

 

111

 

Residential real estate

 

 

2,632

 

 

 

1,353

 

 

 

3,985

 

 

 

2,779

 

 

 

1,354

 

 

 

4,133

 

Home equity

 

 

388

 

 

 

253

 

 

 

641

 

 

 

363

 

 

 

300

 

 

 

663

 

Consumer

 

 

13

 

 

 

5

 

 

 

18

 

 

 

19

 

 

 

9

 

 

 

28

 

Total

 

$

3,563

 

 

$

1,768

 

 

$

5,331

 

 

$

3,927

 

 

$

1,828

 

 

$

5,755

 

 

As of March 31, 2021 and December 31, 2020, there were 0 TDRs greater than $1.0 million.  The concessions granted in the majority of loans reported as accruing and non-accrual TDRs are extensions of the maturity date or the amortization period, reductions in the interest rate below the prevailing market rate for loans with comparable characteristics, and/or permitting interest-only payments for longer than six months.  Wesbanco had unfunded commitments to debtors whose loans were classified as nonperforming of $0.9 million as of March 31, 2021 and December 31, 2020.

The following tables present details related to loans identified as TDRs during the three months ended March 31, 2021 and 2020, respectively:

 

 

 

New TDRs (1)

 

 

 

For the Three Months Ended

 

 

 

March 31, 2021

 

 

March 31, 2020

 

 

 

 

 

 

 

Pre-

 

 

Post-

 

 

 

 

 

 

Pre-

 

 

Post-

 

 

 

 

 

 

 

Modification

 

 

Modification

 

 

 

 

 

 

Modification

 

 

Modification

 

 

 

 

 

 

 

Outstanding

 

 

Outstanding

 

 

 

 

 

 

Outstanding

 

 

Outstanding

 

 

 

Number of

 

 

Recorded

 

 

Recorded

 

 

Number of

 

 

Recorded

 

 

Recorded

 

(unaudited, dollars in thousands)

 

Modifications

 

 

Investment

 

 

Investment

 

 

Modifications

 

 

Investment

 

 

Investment

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

 

 

$

 

 

$

 

 

 

 

 

$

 

 

$

 

Improved Property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

332

 

 

 

330

 

Home equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

$

 

 

$

 

 

 

2

 

 

$

332

 

 

$

330

 

(1) Excludes loans that were either paid off or charged-off by period end.  The pre-modification balance represents the balance outstanding at the beginning of the period.  The post-modification balance represents the outstanding balance at period end.

16


The following table summarizes TDRs which defaulted (defined as past due 90 days) during the three months ended March 31, 2021 and 2020, respectively, that were restructured within the last twelve months prior to March 31, 2021 and 2020, respectively:

 

 

 

Defaulted TDRs (1)

 

 

 

For the Three Months Ended

 

 

 

March 31, 2021

 

 

March 31, 2020

 

 

 

Number of

 

 

Recorded

 

 

Number of

 

 

Recorded

 

(unaudited, dollars in thousands)

 

Defaults

 

 

Investment

 

 

Defaults

 

 

Investment

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

 

 

$

 

 

 

 

 

$

 

Improved property

 

 

 

 

 

 

 

 

 

 

 

 

Total commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

 

 

 

1

 

 

 

13

 

Residential real estate

 

 

 

 

 

 

 

 

1

 

 

 

155

 

Home equity

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

$

 

 

 

2

 

 

$

168

 

 

(1)

Excludes loans that were either charged-off or cured by period end.  The recorded investment is as of March 31, 2021 and 2020, respectively.

TDRs that default are placed on non-accrual status unless they are both well-secured and in the process of collection.  The loans in the table above were not accruing interest.

Section 4013 of the CARES Act allows financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time during the COVID-19 pandemic. These customers must meet certain criteria, such as they were in good standing and not more than 30 days past due either as of December 31, 2019, or as of the implementation of the modification program under the Interagency Statement, as well as other requirements noted in the regulatory agencies’ revised statement. Based on this guidance, Wesbanco does not classify the COVID-19 loan modifications as TDRs, nor are the customers considered past due with regard to their delayed payments. Upon exiting the loan modification deferral program, the measurement of loan delinquency will resume where it left off upon entry into the program. Under the CARES Act, Wesbanco has modified approximately 3,553 loans totaling $2.2 billion, of which $0.2 billion remain in their deferral period as of March 31, 2021.  Wesbanco originally offered three to six months of deferred payments to commercial and retail customers impacted by the COVID-19 pandemic depending on the type of loan and the industry for commercial loans. In the fourth quarter of 2020, Wesbanco offered up to an additional twelve months of deferred payments to certain commercial loan customers, predominantly in the hospitality industry, based on specific criteria related to the borrower, the underlying property and the potential for guarantors / co-borrowers.  On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (“Economic Aid Act”) was signed into law and among other things, extended the relief granted by the CARES Act for TDRs, initially slated to end on December 31, 2020, by one year to December 31, 2021.

17


The following tables summarize amortized cost basis loan balances by year of origination and credit quality indicator:

 

 

 

Loans As of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, in thousands)

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Revolving Loans Amortized Cost Basis

 

 

Revolving Loans Converted to Term

 

 

Total

 

Commercial real estate: land and construction

 

 

 

 

 

Risk rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

30,840

 

 

$

164,939

 

 

$

296,600

 

 

$

49,749

 

 

$

27,064

 

 

$

43,143

 

 

$

22,500

 

 

$

 

 

$

634,835

 

Criticized - compromised

 

 

 

 

 

875

 

 

 

 

 

 

39

 

 

 

228

 

 

 

3,618

 

 

 

600

 

 

 

 

 

 

5,360

 

Classified - substandard

 

 

 

 

 

 

 

 

 

 

 

74

 

 

 

40

 

 

 

1,708

 

 

 

 

 

 

 

 

 

1,822

 

Classified - doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

30,840

 

 

$

165,814

 

 

$

296,600

 

 

$

49,862

 

 

$

27,332

 

 

$

48,469

 

 

$

23,100

 

 

$

 

 

$

642,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate: improved property

 

 

 

 

 

Risk rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

156,789

 

 

$

787,296

 

 

$

690,398

 

 

$

639,915

 

 

$

472,801

 

 

$

1,864,909

 

 

$

67,149

 

 

$

 

 

$

4,679,257

 

Criticized - compromised

 

 

 

 

 

1,892

 

 

 

53,807

 

 

 

17,473

 

 

 

53,576

 

 

 

150,704

 

 

 

20,349

 

 

 

 

 

 

297,801

 

Classified - substandard

 

 

 

 

 

222

 

 

 

28,603

 

 

 

1,860

 

 

 

7,171

 

 

 

55,811

 

 

 

 

 

 

 

 

 

93,667

 

Classified - doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

156,789

 

 

$

789,410

 

 

$

772,808

 

 

$

659,248

 

 

$

533,548

 

 

$

2,071,424

 

 

$

87,498

 

 

$

 

 

$

5,070,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

Risk rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

401,323

 

 

$

685,632

 

 

$

232,322

 

 

$

185,484

 

 

$

135,856

 

 

$

320,788

 

 

$

404,023

 

 

$

130

 

 

$

2,365,558

 

Criticized - compromised

 

 

26

 

 

 

3,290

 

 

 

2,746

 

 

 

4,236

 

 

 

2,651

 

 

 

10,841

 

 

 

13,992

 

 

 

 

 

 

37,782

 

Classified - substandard

 

 

985

 

 

 

 

 

 

2,518

 

 

 

1,668

 

 

 

3,567

 

 

 

5,179

 

 

 

5,478

 

 

 

 

 

 

19,395

 

Classified - doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

402,334

 

 

$

688,922

 

 

$

237,586

 

 

$

191,388

 

 

$

142,074

 

 

$

336,808

 

 

$

423,493

 

 

$

130

 

 

$

2,422,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

Loan delinquency:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

$

66,997

 

 

$

392,577

 

 

$

209,234

 

 

$

130,435

 

 

$

94,237

 

 

$

731,848

 

 

$

 

 

$

 

 

$

1,625,328

 

30-59 days past due

 

 

 

 

 

 

 

 

 

 

 

79

 

 

 

 

 

 

2,634

 

 

 

 

 

 

 

 

 

2,713

 

60-89 days past due

 

 

 

 

 

 

 

 

 

 

 

272

 

 

 

113

 

 

 

1,204

 

 

 

 

 

 

 

 

 

1,589

 

90 days or more past due

 

 

 

 

 

 

 

 

379

 

 

 

784

 

 

 

761

 

 

 

12,868

 

 

 

 

 

 

 

 

 

14,792

 

Total

 

$

66,997

 

 

$

392,577

 

 

$

209,613

 

 

$

131,570

 

 

$

95,111

 

 

$

748,554

 

 

$

 

 

$

 

 

$

1,644,422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

 

 

 

Loan delinquency:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

$

4,724

 

 

$

15,055

 

 

$

3,290

 

 

$

2,959

 

 

$

857

 

 

$

16,995

 

 

$

573,653

 

 

$

11,240

 

 

$

628,773

 

30-59 days past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

400

 

 

 

783

 

 

 

30

 

 

 

1,213

 

60-89 days past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

121

 

 

 

76

 

 

 

 

 

 

197

 

90 days or more past due

 

 

 

 

 

 

 

 

 

 

 

19

 

 

 

150

 

 

 

1,565

 

 

 

1,355

 

 

 

746

 

 

 

3,835

 

Total

 

$

4,724

 

 

$

15,055

 

 

$

3,290

 

 

$

2,978

 

 

$

1,007

 

 

$

19,081

 

 

$

575,867

 

 

$

12,016

 

 

$

634,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

Loan delinquency:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

$

18,121

 

 

$

65,802

 

 

$

79,045

 

 

$

33,586

 

 

$

18,773

 

 

$

51,313

 

 

$

20,589

 

 

$

166

 

 

$

287,395

 

30-59 days past due

 

 

37

 

 

 

444

 

 

 

413

 

 

 

68

 

 

 

114

 

 

 

352

 

 

 

 

 

 

 

 

 

1,428

 

60-89 days past due

 

 

 

 

 

45

 

 

 

50

 

 

 

31

 

 

 

64

 

 

 

148

 

 

 

2

 

 

 

 

 

 

340

 

90 days or more past due

 

 

 

 

 

8

 

 

 

 

 

 

54

 

 

 

29

 

 

 

125

 

 

 

16

 

 

 

 

 

 

232

 

Total

 

$

18,158

 

 

$

66,299

 

 

$

79,508

 

 

$

33,739

 

 

$

18,980

 

 

$

51,938

 

 

$

20,607

 

 

$

166

 

 

$

289,395

 

 

18


 

 

 

Loans As of December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, in thousands)

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Revolving Loans Amortized Cost Basis

 

 

Revolving Loans Converted to Term

 

 

Total

 

Commercial real estate: land and construction

 

 

 

 

 

Risk rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

133,720

 

 

$

314,614

 

 

$

109,232

 

 

$

27,483

 

 

$

16,404

 

 

$

29,685

 

 

$

26,297

 

 

$

 

 

$

657,435

 

Criticized - compromised

 

 

459

 

 

 

 

 

 

1,532

 

 

 

233

 

 

 

79

 

 

 

3,778

 

 

 

1,316

 

 

 

 

 

 

7,397

 

Classified - substandard

 

 

 

 

 

 

 

 

403

 

 

 

58

 

 

 

291

 

 

 

2,693

 

 

 

 

 

 

 

 

 

3,445

 

Classified - doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

134,179

 

 

$

314,614

 

 

$

111,167

 

 

$

27,774

 

 

$

16,774

 

 

$

36,156

 

 

$

27,613

 

 

$

 

 

$

668,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate: improved property

 

 

 

 

 

Risk rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

809,516

 

 

$

670,554

 

 

$

646,629

 

 

$

474,622

 

 

$

572,733

 

 

$

1,346,552

 

 

$

89,120

 

 

$

 

 

$

4,609,726

 

Criticized - compromised

 

 

2,693

 

 

 

67,261

 

 

 

16,793

 

 

 

59,251

 

 

 

42,284

 

 

 

130,247

 

 

 

1,772

 

 

 

 

 

 

320,301

 

Classified - substandard

 

 

102

 

 

 

16,366

 

 

 

4,946

 

 

 

11,647

 

 

 

18,460

 

 

 

55,567

 

 

 

 

 

 

 

 

 

107,088

 

Classified - doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

812,311

 

 

$

754,181

 

 

$

668,368

 

 

$

545,520

 

 

$

633,477

 

 

$

1,532,366

 

 

$

90,892

 

 

$

 

 

$

5,037,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

Risk rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

977,085

 

 

$

240,262

 

 

$

193,712

 

 

$

160,924

 

 

$

85,379

 

 

$

265,890

 

 

$

427,336

 

 

$

136

 

 

$

2,350,724

 

Criticized - compromised

 

 

453

 

 

 

2,726

 

 

 

4,206

 

 

 

2,795

 

 

 

324

 

 

 

11,640

 

 

 

12,453

 

 

 

 

 

 

34,597

 

Classified - substandard

 

 

 

 

 

3,817

 

 

 

1,947

 

 

 

3,771

 

 

 

1,603

 

 

 

5,073

 

 

 

5,906

 

 

 

 

 

 

22,117

 

Classified - doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

977,538

 

 

$

246,805

 

 

$

199,865

 

 

$

167,490

 

 

$

87,306

 

 

$

282,603

 

 

$

445,695

 

 

$

136

 

 

$

2,407,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

Loan delinquency:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

$

385,541

 

 

$

242,770

 

 

$

149,603

 

 

$

108,090

 

 

$

170,967

 

 

$

641,665

 

 

$

 

 

$

 

 

$

1,698,636

 

30-59 days past due

 

 

 

 

 

 

 

 

320

 

 

 

533

 

 

 

 

 

 

1,761

 

 

 

 

 

 

 

 

 

2,614

 

60-89 days past due

 

 

 

 

 

 

 

 

823

 

 

 

 

 

 

185

 

 

 

4,646

 

 

 

 

 

 

 

 

 

5,654

 

90 days or more past due

 

��

 

 

 

483

 

 

 

166

 

 

 

761

 

 

 

819

 

 

 

11,828

 

 

 

 

 

 

 

 

 

14,057

 

Total

 

$

385,541

 

 

$

243,253

 

 

$

150,912

 

 

$

109,384

 

 

$

171,971

 

 

$

659,900

 

 

$

 

 

$

 

 

$

1,720,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

 

 

 

Loan delinquency:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

$

18,191

 

 

$

3,611

 

 

$

3,334

 

 

$

975

 

 

$

1,110

 

 

$

16,477

 

 

$

583,486

 

 

$

12,135

 

 

$

639,319

 

30-59 days past due

 

 

124

 

 

 

 

 

 

34

 

 

 

 

 

 

 

 

 

882

 

 

 

1,247

 

 

 

127

 

 

 

2,414

 

60-89 days past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

749

 

 

 

12

 

 

 

775

 

90 days or more past due

 

 

 

 

 

 

 

 

8

 

 

 

156

 

 

 

88

 

 

 

1,786

 

 

 

1,075

 

 

 

766

 

 

 

3,879

 

Total

 

$

18,315

 

 

$

3,611

 

 

$

3,376

 

 

$

1,131

 

 

$

1,198

 

 

$

19,159

 

 

$

586,557

 

 

$

13,040

 

 

$

646,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

Loan delinquency:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

$

72,847

 

 

$

89,637

 

 

$

39,584

 

 

$

22,118

 

 

$

13,144

 

 

$

45,735

 

 

$

22,253

 

 

$

165

 

 

$

305,483

 

30-59 days past due

 

 

481

 

 

 

408

 

 

 

210

 

 

 

311

 

 

 

194

 

 

 

379

 

 

 

15

 

 

 

 

 

 

1,998

 

60-89 days past due

 

 

273

 

 

 

147

 

 

 

84

 

 

 

100

 

 

 

163

 

 

 

253

 

 

 

11

 

 

 

 

 

 

1,031

 

90 days or more past due

 

 

113

 

 

 

72

 

 

 

73

 

 

 

31

 

 

 

12

 

 

 

242

 

 

 

 

 

 

 

 

 

543

 

Total

 

$

73,714

 

 

$

90,264

 

 

$

39,951

 

 

$

22,560

 

 

$

13,513

 

 

$

46,609

 

 

$

22,279

 

 

$

165

 

 

$

309,055

 

 

The following table summarizes other real estate owned and repossessed assets included in other assets:

 

 

 

March 31,

 

 

December 31,

 

(unaudited, in thousands)

 

2021

 

 

2020

 

Other real estate owned

 

$

375

 

 

$

504

 

Repossessed assets

 

 

18

 

 

 

45

 

Total other real estate owned and repossessed assets

 

$

393

 

 

$

549

 

 

Residential real estate included in other real estate owned was $0.1 million at March 31, 2021 and December 31, 2020.  At March 31, 2021 and December 31, 2020, formal foreclosure proceedings were in process on residential real estate loans totaling $4.3 million and $4.1 million, respectively.

 

19


 

NOTE 5. DERIVATIVES AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

Wesbanco is exposed to certain risks arising from both its business operations and economic conditions.  Wesbanco principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. Wesbanco manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities.  Wesbanco’s existing interest rate derivatives result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in Wesbanco’s assets or liabilities. Wesbanco manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. A matched book is when Wesbanco Bank, Inc.’s (the “Bank”) assets and liabilities are equally distributed but also have similar maturities.

Loan Swaps

Wesbanco executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies.  Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that Wesbanco executes with a third party, such that Wesbanco minimizes its net risk exposure resulting from such transactions.  As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements of ASC 815, changes in the fair value of both the customer swaps and the offsetting third-party swaps are recognized directly in earnings.  As of March 31, 2021 and December 31, 2020, Wesbanco had 122 and 112, respectively, customer interest rate swaps with an aggregate notional amount of $711.0 million and $649.9 million, respectively, related to this program.  During the three months ended March 31, 2021 and 2020, Wesbanco recognized net gains (losses) of $2.8 million and $(2.8) million, respectively, related to the changes in fair value of these swaps. Additionally, Wesbanco recognized $1.9 million and $2.6 million of income for the related swap fees for the three months ended March 31, 2021 and 2020, respectively.

Risk participation agreements are entered into as financial guarantees of performance on interest rate swap derivatives.  The purchased asset or sold liability allows Wesbanco to participate-in (fee received) or participate-out (fee paid) the risk associated with certain derivative positions executed by the borrower by the lead bank in a loan syndication.  As of March 31, 2021 and December 31, 2020, Wesbanco had 13 and 12, respectively, risk participation-in agreements with an aggregate notional amount of $119.2 million and $101.1 million, respectively.  As of March 31, 2021 and December 31, 2020, Wesbanco had 1 risk participation-out agreement with an aggregate notional amount of $10.0 million.

Mortgage Loans Held for Sale and Loan Commitments

Certain residential mortgage loans are originated for sale in the secondary mortgage loan market. These loans are classified as held for sale and carried at fair value as Wesbanco has elected the fair value option. Fair value is determined based on rates obtained from the secondary market for loans with similar characteristics. Wesbanco sells loans to the secondary market on either a mandatory or best efforts basis.  The loans sold on a mandatory basis are not committed to an investor until the loan is closed with the borrower.  Wesbanco enters into forward to be announced (“TBA”) contracts to manage the interest rate risk between the loan commitment and the closing of the loan.  The total balance of forward TBA contracts entered into was $197.0 million and $183.5 million at March 31, 2021 and December 31, 2020, respectively.  Additionally, Wesbanco recognized gains (losses) of $4.5 million and $(2.7) million, respectively, for the three months ended March 31, 2021 and 2020 related to the changes in fair value of these contracts.  The loans sold on a best efforts basis are committed to an investor simultaneous to the interest rate commitment with the borrower, and as a result, the Company does not enter into a separate forward TBA contract to offset the fair value risk as the investor accepts such risk in exchange for a lower premium on sale.

Fair Values of Derivative Instruments on the Balance Sheet  

All derivatives are carried on the consolidated balance sheet at fair value. Derivative assets are classified in the consolidated balance sheet under other assets, and derivative liabilities are classified in the consolidated balance sheet under other liabilities. Changes in fair value are recognized in earnings. None of Wesbanco’s derivatives are designated in a qualifying hedging relationship under ASC 815.  

The table below presents the fair value of Wesbanco’s derivative financial instruments as well as their classification on the Balance Sheet as of March 31, 2021 and December 31, 2020:

 

 

 

March 31, 2021

 

 

December 31, 2020

 

(unaudited, in thousands)

 

Notional or

Contractual

Amount

 

 

Asset

Derivatives

 

 

Liability

Derivatives

 

 

Notional or

Contractual

Amount

 

 

Asset

Derivatives

 

 

Liability

Derivatives

 

Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

710,986

 

 

$

31,732

 

 

$

32,470

 

 

$

649,857

 

 

$

46,418

 

 

$

49,917

 

Other contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate loan commitments

 

 

85,435

 

 

 

 

 

 

314

 

 

 

112,119

 

 

 

702

 

 

 

 

Forward TBA contracts

 

 

197,000

 

 

 

1,515

 

 

 

 

 

 

183,500

 

 

 

 

 

1,161

 

Total derivatives

 

 

 

 

 

$

33,247

 

 

$

32,784

 

 

 

 

 

 

$

47,120

 

 

$

51,078

 

 

20


 

Effect of Derivative Instruments on the Income Statement

The table below presents the change in the fair value of the Company’s derivative financial instruments reflected within non-interest income on the consolidated income statement for the three months ended March 31, 2021 and 2020, respectively.

 

 

 

 

For the Three Months

Ended March 31,

 

(unaudited, in thousands)

Location of Gain/(Loss)

 

2021

 

 

2020

 

Interest rate swaps

Other income

 

$

2,761

 

 

$

(2,751

)

Interest rate loan commitments

Mortgage banking income

 

 

(1,016

)

 

 

(145

)

Forward TBA contracts

Mortgage banking income

 

 

4,518

 

 

 

(2,657

)

Total

 

 

$

6,263

 

 

$

(5,553

)

 

Credit-risk-related Contingent Features

Wesbanco has agreements with its derivative counterparties that contain a provision, which provides that if Wesbanco defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Wesbanco could also be declared in default on its derivative obligations.

Wesbanco also has agreements with certain of its derivative counterparties that contain a provision where if Wesbanco fails to maintain its status as either a “well” or “adequately-capitalized” institution, then the counterparty could terminate the derivative positions and Wesbanco would be required to settle its obligations under the agreements.

Wesbanco had minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral with a market value of $54.2 million as of March 31, 2021.  If Wesbanco had breached any of these provisions at March 31, 2021, it could have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty.

NOTE 6. BENEFIT PLANS

The following table presents the net periodic pension cost for Wesbanco’s Defined Benefit Pension Plan (the “Plan”) and the related components:

 

 

 

For the Three Months

Ended March 31,

 

(unaudited, in thousands)

 

2021

 

 

2020

 

Service cost – benefits earned during year

 

$

616

 

 

$

568

 

Interest cost on projected benefit obligation

 

 

842

 

 

 

1,121

 

Expected return on plan assets

 

 

(2,763

)

 

 

(2,594

)

Amortization of prior service cost

 

 

(8

)

 

 

(9

)

Amortization of net loss

 

 

675

 

 

 

793

 

Net periodic pension income

 

$

(638

)

 

$

(121

)

 

The service cost of $0.6 million for both the three months ended March 31, 2021 and 2020 is included in salaries and wages, and the periodic pension income of $1.3 million and $0.7 million for the three months ended March 31, 2021 and 2020, respectively, is included in employee benefits.

The Plan covers all employees of Wesbanco and its subsidiaries who were hired on or before August 1, 2007 who satisfy minimum age and length of service requirements, and is not available to employees hired after such date.

 

A minimum required contribution of $5.2 million is due for 2021, which can be offset in whole or in part by the Plan’s $64.2 million available credit balance. Wesbanco currently does 0t expect to make a voluntary contribution to the Plan in 2021.

 

 


21


 

NOTE 7. FAIR VALUE MEASUREMENT

Fair value estimates are based on quoted market prices, if available, quoted market prices of similar assets or liabilities, or the present value of expected future cash flows and other valuation techniques. These valuations are significantly affected by discount rates, cash flow assumptions, and risk assumptions used. Therefore, fair value estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realizable in an immediate settlement of the instruments.

Fair value is determined at one point in time and is not representative of future value.  These amounts do not reflect the total value of a going concern organization. Management does not have the intention to dispose of a significant portion of its assets and liabilities, and therefore the unrealized gains or losses should not be interpreted as a forecast of future earnings and cash flows.

The following is a discussion of assets and liabilities measured at fair value on a recurring basis and valuation techniques applied:

Investment securities:  The fair value of investment securities which are measured on a recurring basis are determined primarily by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other similar securities. These securities are classified within level 1 or 2 in the fair value hierarchy.  Positions that are not traded in active markets for which valuations are generated using assumptions not observable in the market or management’s best estimate are classified within level 3 of the fair value hierarchy.  This includes certain specific municipal debt issues for which the credit quality and discount rate must be estimated.  

Loans held for sale:  Loans held for sale are carried, in aggregate, at fair value as Wesbanco previously elected the fair value option.  The use of a valuation model using quoted prices of similar instruments are significant inputs in arriving at the fair value and therefore loans held for sale are classified within level 2 of the fair value hierarchy.

Derivatives:  Wesbanco enters into interest rate swap agreements with qualifying commercial customers to meet their financing, interest rate and other risk management needs.  These agreements provide the customer the ability to convert from variable to fixed interest rates.  The credit risk associated with derivatives executed with customers is essentially the same as that involved in extending loans and is subject to normal credit policies and monitoring.  Those interest rate swaps are economically hedged by offsetting interest rate swaps that Wesbanco executes with derivative counterparties in order to offset its exposure on the fixed components of the customer interest rate swap agreements.  The interest rate swap agreement with the loan customer and with the counterparty is reported at fair value in other assets and other liabilities on the consolidated balance sheet with any resulting gain or loss recorded in current period earnings as other income and other expense.

Wesbanco enters into forward TBA contracts to manage the interest rate risk between the loan commitments to the customer and the closing of the loan for loans that will be sold on a mandatory basis to secondary market investors.  The forward TBA contract is reported at fair value in other assets and other liabilities on the consolidated balance sheet with any resulting gain or loss recorded in current period’s earnings as mortgage banking income.

Wesbanco determines the fair value for derivatives using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities.  Wesbanco incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. 

We may be required from time to time to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP.  These adjustments to fair value usually result from the application of lower of cost or market accounting or write-downs of individual assets and liabilities.

Individually-evaluated nonperforming loans: Individually-evaluated non-performing loans are carried at the amortized cost basis less the specific allowance calculated with the CECL. Since these loans are nonperforming, cash flows could not be estimated and thus are calculated using a cost basis approach or collateral value approach.

Other real estate owned and repossessed assets:  Other real estate owned and repossessed assets are carried at the lower of the investment in the assets or the fair value of the assets less estimated selling costs.  The use of independent appraisals and management’s best judgment are significant inputs in arriving at the fair value measure of the underlying collateral, and therefore other real estate owned and repossessed assets are classified within level 3 of the fair value hierarchy.

22


The fair value amounts presented in the table below are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. 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

 

23


 

 

 

 

 

 

 

 

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

 

 

Wesbanco’s policy is to recognize transfers between levels as of the actual date of the event or change in circumstances that caused the transfer.  There were 0 significant transfers between level 1, 2 or 3 for the three months ended March 31, 2021 or for the year ended December 31, 2020.  

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.

24


 

The estimated fair values of Wesbanco’s financial instruments are summarized below:

 

 

 

 

 

 

 

 

 

 

 

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