v3.26.1
Securities
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Securities

NOTE 3. SECURITIES

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

 

 

 

June 30, 2026

 

 

December 31, 2025

 

(unaudited, in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

196,162

 

 

$

—

 

 

$

(205

)

 

$

195,957

 

 

$

196,586

 

 

$

271

 

 

$

—

 

 

$

196,857

 

U.S. Government sponsored entities and agencies

 

 

231,655

 

 

 

200

 

 

 

(20,790

)

 

 

211,065

 

 

 

243,408

 

 

 

212

 

 

 

(20,623

)

 

 

222,997

 

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

 

 

2,851,623

 

 

 

7,134

 

 

 

(191,438

)

 

 

2,667,319

 

 

 

2,771,608

 

 

 

15,149

 

 

 

(176,309

)

 

 

2,610,448

 

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

 

 

57,198

 

 

 

14

 

 

 

(2,612

)

 

 

54,600

 

 

 

66,043

 

 

 

233

 

 

 

(2,661

)

 

 

63,615

 

Asset backed securities

 

 

65,186

 

 

 

27

 

 

 

(219

)

 

 

64,994

 

 

 

69,095

 

 

 

45

 

 

 

(205

)

 

 

68,935

 

Obligations of states and political subdivisions

 

 

79,240

 

 

 

307

 

 

 

(2,115

)

 

 

77,432

 

 

 

74,738

 

 

 

412

 

 

 

(1,962

)

 

 

73,188

 

Corporate debt securities

 

 

40,946

 

 

 

735

 

 

 

(76

)

 

 

41,605

 

 

 

51,334

 

 

 

1,015

 

 

 

(57

)

 

 

52,292

 

Total available-for-sale debt securities

 

$

3,522,010

 

 

$

8,417

 

 

$

(217,455

)

 

$

3,312,972

 

 

$

3,472,812

 

 

$

17,337

 

 

$

(201,817

)

 

$

3,288,332

 

Held-to-maturity debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored entities and agencies

 

$

2,073

 

 

$

—

 

 

$

(142

)

 

$

1,931

 

 

$

2,341

 

 

$

—

 

 

$

(134

)

 

$

2,207

 

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

 

 

24,445

 

 

 

1

 

 

 

(1,709

)

 

 

22,737

 

 

 

27,014

 

 

 

2

 

 

 

(1,547

)

 

 

25,469

 

Obligations of states and political subdivisions

 

 

1,079,259

 

 

 

1,936

 

 

 

(102,155

)

 

 

979,040

 

 

 

1,100,788

 

 

 

2,137

 

 

 

(96,687

)

 

 

1,006,238

 

Corporate debt securities

 

 

1,974

 

 

 

43

 

 

 

—

 

 

 

2,017

 

 

 

1,971

 

 

 

72

 

 

 

—

 

 

 

2,043

 

Total held-to-maturity debt securities (1)

 

$

1,107,751

 

 

$

1,980

 

 

$

(104,006

)

 

$

1,005,725

 

 

$

1,132,114

 

 

$

2,211

 

 

$

(98,368

)

 

$

1,035,957

 

Total debt securities

 

$

4,629,761

 

 

$

10,397

 

 

$

(321,461

)

 

$

4,318,697

 

 

$

4,604,926

 

 

$

19,548

 

 

$

(300,185

)

 

$

4,324,289

 

(1) Total held-to-maturity debt securities are presented on the balance sheet net of their allowance for credit losses totaling $0.2 million at June 30, 2026 and December 31, 2025.

Equity securities, of which $16.5 million and $28.2 million at June 30, 2026 and December 31, 2025, respectively, 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 $19.1 million and $30.8 million at June 30, 2026 and December 31, 2025, 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 June 30, 2026. 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)

 

Within One Year

 

 

After 1 Year
 through 5 Years

 

 

After 5 Years
through 10 Years

 

 

After 10 Years

 

 

Total

 

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

196,162

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

196,162

 

U.S. Government sponsored entities and agencies

 

 

4,164

 

 

 

87,936

 

 

 

33,029

 

 

 

106,526

 

 

 

231,655

 

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

 

 

70

 

 

 

25,582

 

 

 

291,873

 

 

 

2,534,098

 

 

 

2,851,623

 

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

 

 

2,042

 

 

 

30,296

 

 

 

3,955

 

 

 

20,905

 

 

 

57,198

 

Asset backed securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

65,186

 

 

 

65,186

 

Obligations of states and political subdivisions

 

 

2,157

 

 

 

37,722

 

 

 

17,676

 

 

 

21,685

 

 

 

79,240

 

Corporate debt securities

 

 

8,992

 

 

 

28,207

 

 

 

3,747

 

 

 

—

 

 

 

40,946

 

Total available-for-sale debt securities at amortized cost

 

$

213,587

 

 

$

209,743

 

 

$

350,280

 

 

$

2,748,400

 

 

$

3,522,010

 

Fair value

 

$

213,302

 

 

$

202,122

 

 

$

324,289

 

 

$

2,573,259

 

 

$

3,312,972

 

Weighted-average yield (1)

 

 

3.67

%

 

 

3.38

%

 

 

2.53

%

 

 

3.48

%

 

 

3.39

%

Held-to-maturity debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored entities and agencies

 

$

—

 

 

$

606

 

 

$

1,311

 

 

$

156

 

 

$

2,073

 

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

 

 

—

 

 

 

2,072

 

 

 

5,030

 

 

 

17,343

 

 

 

24,445

 

Obligations of states and political subdivisions

 

 

13,390

 

 

 

259,424

 

 

 

564,188

 

 

 

242,257

 

 

 

1,079,259

 

Corporate debt securities

 

 

—

 

 

 

1,974

 

 

 

—

 

 

 

—

 

 

 

1,974

 

Total held-to-maturity debt securities at amortized cost

 

$

13,390

 

 

$

264,076

 

 

$

570,529

 

 

$

259,756

 

 

$

1,107,751

 

Fair value

 

$

13,375

 

 

$

257,544

 

 

$

512,025

 

 

$

222,781

 

 

$

1,005,725

 

Weighted-average yield (1)

 

 

4.05

%

 

 

3.54

%

 

 

2.84

%

 

 

2.96

%

 

 

3.05

%

(1) Weighted-average yields are based on the amortized cost with effective yields weighted for the contractual maturity of each security. Weighted-average yields on tax exempt securities have been calculated on a taxable equivalent basis using the federal statutory tax rate of 21%.

 

Securities with an aggregate carrying value of $2.8 billion at both June 30, 2026 and December 31, 2025, 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 for the six months ended June 30, 2026 and 2025 totaled $22.3 million and $873.8 million, respectively. Net unrealized losses on available-for-sale securities included in accumulated other comprehensive income, net of tax, as of June 30, 2026 and December 31, 2025 were $159.3 million and $139.5 million, respectively.

The following table presents the gross realized gains and losses on sales and calls of available-for-sale and held-to-maturity debt securities, as well as gains and losses on equity securities from both sales and market adjustments, for the three and six months ended June 30, 2026 and 2025, respectively. All gains and losses presented in the table below are included in the net securities gains line item of the Consolidated 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 June 30,

 

 

For the Six Months
Ended June 30,

 

(unaudited, in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

Gross realized gains

 

$

520

 

 

$

17

 

 

$

556

 

 

$

218

 

Gross realized losses

 

 

(419

)

 

 

(7

)

 

 

(419

)

 

 

(169

)

Net gains on debt securities

 

 

101

 

 

 

10

 

 

 

137

 

 

 

49

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains recognized on securities still held

 

 

1,543

 

 

 

1,400

 

 

 

1,494

 

 

 

1,043

 

Net securities gains

 

$

1,644

 

 

$

1,410

 

 

$

1,631

 

 

$

1,092

 

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 consolidated income statement in the provision for credit losses. Accrued interest receivable on held-to-maturity securities, which was $8.1 million and $8.2 million as of June 30, 2026 and December 31, 2025, 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 zero, and will monitor this assumption in the future for any economic 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 six months ended June 30, 2026 and 2025:

 

 

Allowance for Credit Losses By Category

 

 

For the Six Months Ended June 30, 2026 and 2025

 

 

 

 

 

 

 

 

 

Obligations of

 

 

 

 

 

 

states and

 

Corporate

 

 

 

 

political

 

debt

 

 

(unaudited, in thousands)

subdivisions

 

Securities

 

Total

 

Balance at December 31, 2025

$

155

 

$

13

 

$

168

 

Current period provision (1)

 

—

 

 

(3

)

 

(3

)

Balance at June 30, 2026

$

155

 

$

10

 

$

165

 

.

 

 

 

 

 

 

Balance at December 31, 2024

$

124

 

$

22

 

$

146

 

Current period provision (1)

 

17

 

 

15

 

 

32

 

Balance at June 30, 2025

$

141

 

$

37

 

$

178

 

 

(1) The total provision for credit losses on held-to-maturity securities is reported in the Consolidated Statement of Income in the provision for credit losses line item, which also includes the provision for credit losses - loans and loan commitments. For more information on the provision relating to loans and loan commitments, please see Note 4, "Loans and the Allowance for Credit Losses."

 

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 June 30, 2026 and December 31, 2025, respectively:

 

 

 

June 30, 2026

 

 

 

Less than 12 months

 

 

12 months or more

 

 

Total

 

(unaudited, dollars in thousands)

 

Fair
Value

 

 

Unrealized
Losses

 

 

# of
Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

# of
Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

# of
Securities

 

U.S. Treasury

 

$

195,956

 

 

$

(205

)

 

 

4

 

 

$

—

 

 

$

—

 

 

 

—

 

 

$

195,956

 

 

$

(205

)

 

 

4

 

U.S. Government sponsored entities and agencies

 

 

19,249

 

 

 

(249

)

 

 

5

 

 

 

180,242

 

 

 

(20,541

)

 

 

41

 

 

 

199,491

 

 

 

(20,790

)

 

 

46

 

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

 

 

836,528

 

 

 

(9,663

)

 

 

179

 

 

 

1,222,630

 

 

 

(181,775

)

 

 

356

 

 

 

2,059,158

 

 

 

(191,438

)

 

 

535

 

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

 

 

10,967

 

 

 

(75

)

 

 

2

 

 

 

39,490

 

 

 

(2,537

)

 

 

16

 

 

 

50,457

 

 

 

(2,612

)

 

 

18

 

Asset backed securities

 

 

43,998

 

 

 

(121

)

 

 

9

 

 

 

11,635

 

 

 

(98

)

 

 

3

 

 

 

55,633

 

 

 

(219

)

 

 

12

 

Obligations of states and political subdivisions

 

 

17,340

 

 

 

(73

)

 

 

26

 

 

 

20,630

 

 

 

(2,042

)

 

 

26

 

 

 

37,970

 

 

 

(2,115

)

 

 

52

 

Corporate debt securities

 

 

6,440

 

 

 

(50

)

 

 

6

 

 

 

7,466

 

 

 

(26

)

 

 

2

 

 

 

13,906

 

 

 

(76

)

 

 

8

 

Total temporarily impaired securities

 

$

1,130,478

 

 

$

(10,436

)

 

 

231

 

 

$

1,482,093

 

 

$

(207,019

)

 

 

444

 

 

$

2,612,571

 

 

$

(217,455

)

 

 

675

 

 

 

 

December 31, 2025

 

 

 

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. Treasury

 

$

—

 

 

$

—

 

 

 

—

 

 

$

—

 

 

$

—

 

 

 

—

 

 

$

—

 

 

$

—

 

 

 

—

 

U.S. Government sponsored entities and agencies

 

 

8,252

 

 

 

(109

)

 

 

3

 

 

 

189,841

 

 

 

(20,514

)

 

 

42

 

 

 

198,093

 

 

 

(20,623

)

 

 

45

 

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

 

 

245,766

 

 

 

(1,340

)

 

 

59

 

 

 

1,307,219

 

 

 

(174,969

)

 

 

430

 

 

 

1,552,985

 

 

 

(176,309

)

 

 

489

 

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

48,325

 

 

 

(2,661

)

 

 

18

 

 

 

48,325

 

 

 

(2,661

)

 

 

18

 

Asset backed securities

 

 

4,168

 

 

 

(124

)

 

 

8

 

 

 

23,806

 

 

 

(1,838

)

 

 

33

 

 

 

27,974

 

 

 

(1,962

)

 

 

41

 

Obligations of states and political subdivisions

 

 

58,042

 

 

 

(205

)

 

 

11

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

58,042

 

 

 

(205

)

 

 

11

 

Corporate debt securities

 

 

11,050

 

 

 

(55

)

 

 

8

 

 

 

5,484

 

 

 

(2

)

 

 

2

 

 

 

16,534

 

 

 

(57

)

 

 

10

 

Total temporarily impaired securities

 

$

327,278

 

 

$

(1,833

)

 

 

89

 

 

$

1,574,675

 

 

$

(199,984

)

 

 

525

 

 

$

1,901,953

 

 

$

(201,817

)

 

 

614

 

Unrealized losses on debt securities in the tables above represent temporary fluctuations resulting from changes in market rates in relation to fixed yields. Unrealized losses in the available-for-sale portfolio are accounted for as an adjustment, net of taxes, to other comprehensive income in shareholders’ equity. Wesbanco does not believe the securities presented above are impaired due to reasons of credit quality, as substantially all debt securities are rated above investment grade and all are paying principal and interest according to their contractual terms. Wesbanco does not intend to sell, nor is it more likely than not that it will be required to sell, loss position securities prior to recovery of their cost; therefore, management believes

the unrealized losses detailed above 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") stock totaling $69.4 million and $58.5 million at June 30, 2026 and December 31, 2025, respectively, and are included in other assets on the Consolidated Balance Sheet. Cost method investments are evaluated for impairment whenever events or circumstances suggest that their carrying value may not be recoverable.