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

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of RegulationS-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-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 Rule12b-2 of the Exchange Act.

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 Rule12b-2 of the Exchange Act).

As of July ~~25, 2017,~~23, 2018, there were ~~44,031,335~~46,643,250 shares of WesBanco, Inc. common stock, $2.0833 par value, outstanding.


Item No.	ITEM	Page No.		ITEM	Page No.

	PART I—FINANCIAL INFORMATION			PART I – FINANCIAL INFORMATION
1	Financial Statements			Financial Statements
	Consolidated Balance Sheets at June 30, 2017 (unaudited) and December 31, 2016		3	Consolidated Balance Sheets at June 30, 2018 (unaudited) and December 31, 2017		3
	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2017 and 2016 (unaudited)		4	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2018 and 2017 (unaudited)		4
	Consolidated Statements of Changes in Shareholders’ Equity for the six months ended June 30, 2017 and 2016 (unaudited)		5	Consolidated Statements of Changes in Shareholders’ Equity for the six months ended June 30, 2018 and 2017 (unaudited)		5
	Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (unaudited)		6	Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017 (unaudited)		6
	Notes to Consolidated Financial Statements (unaudited)		7	Notes to Consolidated Financial Statements (unaudited)		7

2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		31	Management’s Discussion and Analysis of Financial Condition and Results of Operations		32

3	Quantitative and Qualitative Disclosures About Market Risk		51	Quantitative and Qualitative Disclosures About Market Risk		51

4	Controls and Procedures		54	Controls and Procedures		54

	PART II – OTHER INFORMATION			PART II – OTHER INFORMATION
1	Legal Proceedings		55	Legal Proceedings		55

2	Unregistered Sales of Equity Securities and Use of Proceeds		55	Unregistered Sales of Equity Securities and Use of Proceeds		56

6	Exhibits		56	Exhibits		57

	Signatures		57	Signatures		58


*(unaudited, in thousands, except shares)*	June 30, 2017			December 31, 2016			June 30, 2018			December 31, 2017
ASSETS
Cash and due from banks, including interest bearing amounts of$6,506 and $21,913, respectively	$	110,695		$	128,170
Cash and due from banks, including interest bearing amounts of$53,654 and $19,826, respectively							$	155,559		$	117,572
Securities:
Trading securities, at fair value		7,880			7,071
Available-for-sale, at fair value		1,239,420			1,241,176
Held-to-maturity (fair values of $1,049,374and $1,076,790, respectively)		1,030,394			1,067,967
Equity securities, at fair value								13,494			13,457
Available-for-sale debt securities, at fair value								1,796,571			1,261,865
Held-to-maturity debt securities (fair values of $1,016,111and $1,023,784, respectively)								1,019,746			1,009,500

Total securities		2,277,694			2,316,214			2,829,811			2,284,822

Loans held for sale		21,677			17,315			12,053			20,320

Portfolio loans, net of unearned income		6,390,417			6,249,436			6,792,899			6,341,441
Allowance for loan losses		(44,909	)		(43,674	)		(47,638	)		(45,284	)

Net portfolio loans		6,345,508			6,205,762			6,745,261			6,296,157

Premises and equipment, net		134,903			133,297			131,502			130,722
Accrued interest receivable		28,501			28,299			33,868			29,728
Goodwill and other intangible assets, net		591,252			593,187			661,616			589,264
Bank-owned life insurance		190,304			188,145			191,701			192,589
Other assets		173,476			180,488			185,213			155,004

Total Assets	$	9,874,010		$	9,790,877		$	10,946,584		$	9,816,178

LIABILITIES
Deposits:
Non-interest bearing demand	$	1,801,423		$	1,789,522		$	2,046,537		$	1,846,748
Interest bearing demand		1,625,011			1,546,890			1,809,140			1,625,015
Money market		1,005,184			995,477			1,051,043			1,024,856
Savings deposits		1,255,083			1,213,168			1,385,356			1,269,912
Certificates of deposit		1,385,772			1,495,822			1,376,528			1,277,057

Total deposits		7,072,473			7,040,879			7,668,604			7,043,588

Federal Home Loan Bank borrowings		1,021,592			968,946			1,248,406			948,203
Other short-term borrowings		167,671			199,376			258,067			184,805
Subordinated debt and junior subordinated debt		164,228			163,598			165,420			164,327

Total borrowings		1,353,491			1,331,920			1,671,893			1,297,335

Accrued interest payable		2,407			2,204			4,417			3,178
Other liabilities		68,102			74,466			77,564			76,756

Total Liabilities		8,496,473			8,449,469			9,422,478			8,420,857

SHAREHOLDERS’ EQUITY
Preferred stock, no par value; 1,000,000 shares authorized; none outstanding		—			—			—			—
Common stock, $2.0833 par value; 100,000,000 shares authorized in 2017 and 2016, respectively;44,041,572 and 43,931,715 shares issued, respectively;44,031,335 and 43,931,715 shares outstanding, respectively		91,753			91,524
Common stock, $2.0833 par value;100,000,000shares authorized in 2018 and 2017, respectively;46,655,012and 44,043,244 shares issued, respectively;46,643,250and 44,043,244 shares outstanding, respectively								97,197			91,756
Capital surplus		682,443			680,507			789,038			684,730
Retained earnings		626,421			597,071			692,820			651,357
Treasury stock (10,237 and 0 shares in 2017 and 2016, respectively, at cost)		(385	)		—
Treasury stock (11,762and 0shares - at cost, respectively)								(555	)		—
Accumulated other comprehensive loss		(22,118	)		(27,126	)		(53,352	)		(31,495	)
Deferred benefits for directors		(577	)		(568	)		(1,042	)		(1,027	)

Total Shareholders’ Equity		1,377,537			1,341,408			1,524,106			1,395,321

Total Liabilities and Shareholders’ Equity	$	9,874,010		$	9,790,877		$	10,946,584		$	9,816,178


	For the Three Months Ended June 30,				For the Six Months Ended June 30,				For the Three Months Ended June 30,					For the Six Months Ended June 30,
*(unaudited, in thousands, except shares and per share amounts)*	2017		2016		2017		2016		2018			2017		2018		2017
INTEREST AND DIVIDEND INCOME
Loans, including fees	$	67,360	$	52,697	$	132,258	$	105,035	$	78,538		$	67,360	$	147,671	$	132,258
Interest and dividends on securities:
Taxable		9,375		9,775		18,970		19,993		14,194			9,375		25,738		18,970
Tax-exempt		4,864		4,540		9,756		9,061		5,055			4,864		9,890		9,756

Total interest and dividends on securities		14,239		14,315		28,726		29,054		19,249			14,239		35,628		28,726

Other interest income		561		573		1,100		1,097		1,101			561		1,904		1,100

Total interest and dividend income		82,160		67,585		162,084		135,186		98,888			82,160		185,203		162,084

INTEREST EXPENSE
Interest bearing demand deposits		1,506		643		2,599		1,150		3,150			1,506		5,673		2,599
Money market deposits		644		450		1,218		906		1,093			644		1,972		1,218
Savings deposits		185		165		367		330		227			185		416		367
Certificates of deposit		2,491		2,583		4,902		5,242		2,977			2,491		5,513		4,902

Total interest expense on deposits		4,826		3,841		9,086		7,628		7,447	��		4,826		13,574		9,086

Federal Home Loan Bank borrowings		3,145		3,031		5,980		6,099		5,953			3,145		10,451		5,980
Other short-term borrowings		262		99		560		181		973			262		1,532		560
Subordinated debt and junior subordinated debt		1,788		840		3,600		1,663		2,168			1,788		4,110		3,600

Total interest expense		10,021		7,811		19,226		15,571		16,541			10,021		29,667		19,226

NET INTEREST INCOME		72,139		59,774		142,858		119,615		82,347			72,139		155,536		142,858
Provision for credit losses		2,383		1,811		5,094		4,135		1,708			2,383		3,876		5,094

Net interest income after provision for credit losses		69,756		57,963		137,764		115,480		80,639			69,756		151,660		137,764

NON-INTEREST INCOME
Trust fees		5,572		5,036		11,716		10,747		5,752			5,572		12,255		11,716
Service charges on deposits		5,081		4,176		9,933		8,128		5,146			5,081		9,969		9,933
Electronic banking fees		4,984		3,742		9,512		7,345		5,728			4,984		10,558		9,512
Net securities brokerage revenue		1,680		1,750		3,442		3,646		1,809			1,680		3,479		3,442
Bank-owned life insurance		1,367		942		2,508		1,915		1,128			1,367		3,884		2,508
Net gains on sales of mortgage loans		968		683		2,408		1,231
Mortgage banking income										1,670			968		2,776		2,408
Net securities gains		494		585		506		1,696		358			494		319		506
Net gain on other real estate owned and other assets		342		214		307		196		229			342		491		307
Other income		1,634		2,463		4,674		4,080		1,588			1,634		3,760		4,674

Total non-interest income		22,122		19,591		45,006		38,984		23,408			22,122		47,491		45,006

NON-INTEREST EXPENSE
Salaries and wages		23,616		19,731		46,618		38,911		26,872			23,616		51,878		46,618
Employee benefits		7,731		7,332		15,941		14,409		7,965			7,731		14,877		15,941
Net occupancy		4,510		3,220		8,837		6,811		4,103			4,510		8,759		8,837
Equipment		4,097		3,402		8,139		6,830		4,095			4,097		8,044		8,139
Marketing		2,060		1,608		2,884		2,581		1,405			2,060		2,521		2,884
FDIC insurance		906		1,099		1,733		2,264		868			906		1,526		1,733
Amortization of intangible assets		1,240		697		2,513		1,427		1,312			1,240		2,397		2,513
Restructuring and merger-related expense		—		694		491		694		5,412			—		5,657		491
Other operating expenses		11,724		9,577		23,112		18,776		11,511			11,724		22,455		23,112

Total non-interest expense		55,884		47,360		110,268		92,703		63,543			55,884		118,114		110,268

Income before provision for income taxes		35,994		30,194		72,502		61,761		40,504			35,994		81,037		72,502
Provision for income taxes		9,653		8,085		20,274		16,779		7,335			9,653		14,339		20,274

NET INCOME	$	26,341	$	22,109	$	52,228	$	44,982	$	33,169		$	26,341	$	66,698	$	52,228

EARNINGS PER COMMON SHARE
Basic	$	0.60	$	0.58	$	1.19	$	1.17	$	0.71		$	0.60	$	1.47	$	1.19
Diluted	$	0.60	$	0.58	$	1.19	$	1.17	$	0.71		$	0.60	$	1.47	$	1.19

AVERAGE COMMON SHARES OUTSTANDING
Basic		43,995,749		38,373,610		43,971,789		38,380,296		46,498,305			43,995,749		45,281,264		43,971,789
Diluted		44,061,421		38,410,393		44,046,812		38,414,922		46,639,780			44,061,421		45,417,010		44,046,812

DIVIDENDS DECLARED PER COMMON SHARE	$	0.26	$	0.24	$	0.52	$	0.48	$	0.29		$	0.26	$	0.58	$	0.52

COMPREHENSIVE INCOME	$	29,065	$	27,368	$	57,236	$	62,839	$	26,893		$	29,065	$	45,904	$	57,236


	Common Stock					Capital Surplus				Retained Earnings			Treasury Stock				Accumulated Other Comprehensive (Loss) Income			Deferred Benefits for Directors				Total				Common Stock						Capital Surplus				Retained Earnings				Treasury Stock				Accumulated Other Comprehensive (Loss) Income				Deferred Benefits for Directors				Total
*(unaudited, in thousands, except shares* *and per share amounts)*	Shares Outstanding			Amount									Treasury Stock			Shares Outstanding							Amount											Capital Surplus				Retained Earnings				Treasury Stock				Accumulated Other Comprehensive (Loss) Income				Deferred Benefits for Directors				Total
December 31, 2017																													44,043,244			$	91,756	$	684,730			$	651,357			$	—			$	(31,495	)		$	(1,027	)		$	1,395,321

Net income																													—				—		—				66,698				—				—				—				66,698
Other comprehensive income																													—				—		—				—				—				(20,794	)			—				(20,794	)

Comprehensive income																													—				—		—				—				—				—				—				45,904
Common dividends declared ($0.58 per share)																													—				—		—				(26,298	)			—				—				—				(26,298	)
Adoption of accounting standard ASU2016-01																													—				—		—				1,063				—				(1,063	)			—				—
Shares issued for acquisition																													2,498,761				5,206		102,141				—				—				—				—				107,347
Treasury shares acquired																													(15,159	)			—		34				—				(714	)			—				—				(680	)
Stock options exercised																													36,788				69		915				—				159				—				—				1,143
Restricted stock granted																													79,616				166		(166	)							—												—
Stock compensation expense																													—				—		1,838				—				—				—				—				1,838
Deferred benefits for directors- net																													—				—		(454	)			—				—				—				(15	)			(469	)

June 30, 2018																													46,643,250			$	97,197	$	789,038			$	692,820			$	(555	)		$	(53,352	)		$	(1,042	)		$	1,524,106


December 31, 2016		43,931,715		$	91,524	Capital Surplus			$	Retained Earnings	680,507		$	597,071			Accumulated Other Comprehensive (Loss) Income	$	—	Deferred Benefits for Directors		$	(27,126	Total	)		$	(568	)		$	1,341,408		43,931,715			$	91,524			$	680,507			$	597,071			$	—			$	(27,126	)		$	(568	)	$	1,341,408

Net income		—			—		—				52,228			—				—			—				52,228				—				—		—				52,228				—				—				—				52,228
Other comprehensive income		—			—		—				—			—				5,008			—				5,008				—				—		—				—				—				5,008				—				5,008

Comprehensive income		—			—		—				—			—				—			—				57,236				—				—		—				—				—				—				—				57,236
Common dividends declared ($0.52 per share)		—			—		—				(22,878	)		—				—			—				(22,878	)			—				—		—				(22,878	)			—				—				—				(22,878	)
Treasury shares acquired		(12,987	)		—		—				—			(488	)			—			—				(488	)			(12,987	)			—		—				—				(488	)			—				—				(488	)
Stock options exercised		38,584			75		883				—			103				—			—				1,061				38,584				75		883				—				103				—				—				1,061
Issuance of restricted stock		74,023			154		(154	)			—			—				—			—				—
Restricted stock granted																													74,023				154		(154	)			—				—				—				—				—
Stock compensation expense		—			—		1,198				—			—				—			—				1,198				—				—		1,198				—				—				—				—				1,198
Deferred benefits for directors- net		—			—		9				—			—				—			(9	)			—				—				—		9				—				—				—				(9	)			—

June 30, 2017		44,031,335		$	91,753	$	682,443			$	626,421		$	(385	)		$	(22,118	)	$	(577	)		$	1,377,537				44,031,335			$	91,753	$	682,443			$	626,421			$	(385	)		$	(22,118	)		$	(577	)		$	1,377,537


December 31, 2015		38,459,635		$	80,304	$	516,294			$	549,921		$	(2,640	)		$	(20,954	)	$	(793	)		$	1,122,132

Net income		—			—		—				44,982			—				—			—				44,982
Other comprehensive income		—			—		—				—			—				17,857			—				17,857

Comprehensive income		—			—		—				—			—				—			—				62,839
Common dividends declared ($0.48 per share)		—			—		—				(18,420	)		—				—			—				(18,420	)
Treasury shares acquired		(128,317	)		—		—				—			(3,674	)			—			—				(3,674	)
Stock options exercised		28,375			—		(173	)			—			882				—			—				709
Issuance of restricted stock		51,650			—		(1,564	)			—			1,564				—			—				—
Stock compensation expense		—			—		834				—			—				—			—				834
Deferred benefits for directors- net		—			—		(235	)			—			—				—			235				—

June 30, 2016		38,411,343		$	80,304	$	515,156			$	576,483		$	(3,868	)		$	(3,097	)	$	(558	)		$	1,164,420


	For the Six Months Ended June 30,						For the Six Months Ended June 30,
*(unaudited, in thousands)*	2017			2016			2018			2017
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	56,509		$	59,861		$	66,853		$	56,509

INVESTING ACTIVITIES
Net increase in loans held for investment		(141,174	)		(103,249	)		(11,819	)		(141,174	)
Securities available-for-sale:
Debt securitiesavailable-for-sale:
Proceeds from sales		7,760			109,644			81,521			7,760
Proceeds from maturities, prepayments and calls		102,225			154,447			114,206			102,225
Purchases of securities		(104,584	)		(83,783	)		(625,395	)		(104,584	)
Securities held-to-maturity:
Debt securitiesheld-to-maturity:
Proceeds from maturities, prepayments and calls		64,188			44,077			37,842			64,188
Purchases of securities								(44,656	)		(29,912	)
Equity securities:
Proceeds from sales								827			—
Purchases of securities		(29,912	)		(31,848	)		(467	)		—
Proceeds from bank-owned life insurance		349			19			4,772			349
Purchases of premises and equipment – net		(4,898	)		(2,804	)		(845	)		(4,898	)
Net cash received from acquisition								86,149			—
Sale of portfolio loans – net								12,996			—

Net cash (used in) provided by investing activities		(106,046	)		86,503
Net cash used in investing activities								(344,869	)		(106,046	)

FINANCING ACTIVITIES
Increase (decrease) in deposits		32,494			(137,386	)
Increase in deposits								36,045			32,494
Proceeds from Federal Home Loan Bank borrowings		415,000			65,000			575,000			415,000
Repayment of Federal Home Loan Bank borrowings		(362,331	)		(49,685	)		(327,142	)		(362,331	)
Decrease in other short-term borrowings		(6,205	)		(6,253	)
(Decrease) increase in federal funds purchased		(25,500	)		4,000
Increase (decrease) in other short-term borrowings								67,103			(6,205	)
Decrease in federal funds purchased								(3,000	)		(25,500	)
Repayment of junior subordinated debt								(8,240	)		—
Dividends paid to common shareholders		(21,969	)		(18,060	)		(24,226	)		(21,969	)
Issuance of common stock		990			—			1,035			990
Treasury shares purchased – net		(417	)		(3,039	)		(572	)		(417	)

Net cash provided by (used in) financing activities		32,062			(145,423	)
Net cash provided by financing activities								316,003			32,062

Net (decrease) increase in cash and cash equivalents		(17,475	)		941
Net increase (decrease) in cash and cash equivalents								37,987			(17,475	)
Cash and cash equivalents at beginning of the period		128,170			86,685			117,572			128,170

Cash and cash equivalents at end of the period	$	110,695		$	87,626		$	155,559		$	110,695

SUPPLEMENTAL DISCLOSURES
Interest paid on deposits and other borrowings	$	19,844		$	15,994		$	29,791		$	19,844
Income taxes paid		14,700			14,500			10,000			14,700
Transfers of loans to other real estate owned		298			546			229			298
Transfers of loans to held for sale								12,996			—
Non-cash transactions related to FTSB acquisition								107,347			—

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 Form10-Q and Article 10 of RegulationS-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 Form10-K for the year ended December 31, ~~2016.~~2017.

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 ~~2016~~2017 Annual Report on Form10-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 —In ~~May~~August 2017, the ~~Financial~~FASB issued ASU2017-12, “Targeted Improvements to Accounting ~~Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09 “Compensation—Stock Compensation (Topic 718), Scope~~for Hedging Activities.” The new guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of ~~Modification Accounting.” These amendments provide guidance on determining which changes~~hedge accounting, and increase transparency as to the ~~terms~~scope and ~~conditions~~results of ~~share-based payment awards require an entity to apply modification accounting under Topic 718.~~hedging programs. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, ~~2017.~~2018. Early adoption is permitted, including adoption in an interim period. ~~The amendments should be applied on a prospective basis to an award modified on or after the adoption date.~~ WesBanco is currently assessing the impact of ASU ~~2017-09 and does not expect it to have a material impact on WesBanco’s Consolidated Financial Statements.~~

In March 2017, FASB issued ASU 2017-08 that shortens the amortization period of certain callable debt securities held at a premium. The premium is required to be amortized to the earliest call date. Securities held at a discount continue to be amortized to maturity. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, which for WesBanco will be effective for the fiscal year beginning January 1, 2019. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact2017-12 on WesBanco’s Consolidated Financial Statements.

In March 2017, the FASB issued ASU2017-07 that changes how an employer presents the net periodic benefit cost in the income statement for an employer-sponsored defined benefit pension and/or other postretirement benefit ~~plans present the net periodic benefit cost in the income statement.~~plans. Employers will present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. Employers will present the other components of the net periodic benefit cost separately from the line items that includes the service cost outside of any subtotal of operating income, if one is presented. These components will not be eligible for capitalization in assets. For public business entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual period (i.e., only in the first interim period). For WesBanco, this update ~~will be~~was effective for the fiscal year beginning January 1, 2018. Upon adoption, WesBanco ~~will reclassify~~reclassified the service cost component from employee benefits to salaries and wages, which are both components ofnon-interest expense. The service cost component for the three and six months ~~ending~~ended June 30, ~~2017~~2018 was ~~$0.6 million~~$0.7 and ~~$1.3~~$1.4 million, respectively.

In January 2017, the FASB issued ASU 2017-04 that eliminated the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. Public business entities that are a U.S. Securities and Exchange Commission filer should adopt this update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, which for WesBanco will be effective for the fiscal year beginning January 1, 2020. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact on WesBanco’s Consolidated Financial Statements.

~~In January 2017, the FASB issued ASU No.~~ 2017-01, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU2017-01 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, which for WesBanco ~~will be~~was effective for the fiscal year beginning January 1, 2018. ~~WesBanco is currently evaluating the potential impact of ASU 2017-01 but it is not expected that the~~The adoption of this ~~new standard will~~pronouncement did not have a material impact on WesBanco’s Consolidated Financial Statements.

In October 2016, the FASB issued ASU2016-16 that provides the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Current guidance prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This prohibition on recognition is an exception to the principle of comprehensive recognition of current and deferred income taxes in generally accepted accounting principles. The exception has led to diversity in practice and is a source of complexity in financial reporting. FASB decided that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this update eliminate the exception for an intra-entity transfer of an asset other than inventory. The amendments in this update do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. For public business entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, which for WesBanco ~~will be~~was effective for the fiscal year beginning January 1, 2018. The amendments in this update ~~should~~were to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this pronouncement isdid not ~~expected to~~ have a material impact on WesBanco’s Consolidated Financial Statements.

In August 2016, the FASB issued ASU2016-15 that provides guidance for the classification of cash flows related to (1) debt prepayment or extinguishment costs, (2) settlement ofzero-coupon debt instruments or other debt instruments with coupon rates that are insignificant in relation to the effective interest rate on the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions and (8) separately identifiable cash flows and application of the predominance principle. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, which for WesBanco ~~will be~~was effective for the fiscal year beginning January 1, 2018. ~~Early adoption is permitted.~~ The adoption of this pronouncement isdid not ~~expected to~~ have a material impact on WesBanco’s Consolidated Financial Statements.

In June 2016, the FASB issued ASU2016-13 that will require entities to use a new forward-looking “expected loss” model on trade and other receivables,held-to-maturity debt securities, loans and other instruments that generally will result in the earlier recognition of allowances for credit losses. Foravailable-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. Entities will have to disclose significantly

more information, including information they use to track credit quality by year of origination for most financing receivables. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which for WesBanco will be effective for the fiscal year beginning January 1, 2020. Early adoption is permitted for fiscal years beginning after December 15, 2018. WesBanco is currently evaluating the impact of the adoption of this pronouncement on WesBanco’s Consolidated Financial Statements.

In March 2016, the FASB issued ASU 2016-09 that will require all excess income tax benefits or tax deficiencies of stock awards to be recognized in the income statement when the awards vest or are settled. It also will allow an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of this pronouncement did not have a material impact on WesBanco’s Consolidated Financial Statements.

In March 2016, the FASB issued ASU 2016-07 that eliminates the requirement to retrospectively apply the equity method in previous periods when an investor initially obtains significant influence over an investee. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2016, and requires prospective adoption. Early adoption is permitted. The adoption of this pronouncement did not have a material impact on WesBanco’s Consolidated Financial Statements.

In February 2016, the FASB issued ASU2016-02 that will require entities to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases were not previously recognized in the balance sheet. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ~~WesBanco is~~In January 2018, the FASB issued ASU2018-01, which allows entities the option to apply the provisions of the new lease guidance at the effective date without adjusting the comparative periods presented. In July 2018, the FASB issued ASU2018-10, which provides narrow-scope improvements to the lease standard. While we are currently ~~evaluating~~assessing the impact of the adoption of this pronouncement, we expect the primary impact to our consolidated financial position upon adoption will be the recognition, on ~~WesBanco’s Consolidated Financial Statements.~~a discounted basis, of our minimum commitments undernon-cancellable operating leases on our consolidated Balance Sheets resulting in the recording of right of use assets and lease obligations.

In January 2016, the FASB issued ASU2016-01 that will require entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. The standard does not change the guidance for classifying and measuring investments in debt securities and loans. Entities will have to record changes in instrument-specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. ~~Early adoption is permitted. The~~In February 2018, the FASB issued ASU2018-03, which clarifies certain aspects of the guidance issued in ASU2016-01. WesBanco adopted these pronouncements as of January 1, 2018 and recognized a $1.1 million adjustment to retained earnings upon adoption of this ~~pronouncement is not expected to have a material impact~~pronouncement. In addition, WesBanco reclassified investment securities on ~~WesBanco’s~~the Consolidated Financial ~~Statements.~~Statements into the following – equity securities,available-for-sale debt securities andheld-to-maturity debt securities.

In May 2014, the FASB issued ASU2014-09 related to the recognition of revenue from contracts with customers. The new revenue pronouncement creates a single source of revenue guidance for all companies in all industries and is more principles-based than current revenue guidance. The pronouncement provides a five-step model for a company to recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The five steps are, (1) identify the contract with the customer, (2) identify the separate performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the separate performance obligations and (5) recognize revenue when each performance obligation is satisfied. On July 9, 2015, the FASB approved aone-year deferral of the effective date of the update. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. ~~Early adoption is now permitted as of the original effective date for interim and annual reporting periods in fiscal years beginning after December 15, 2016.~~ In March 2016, the FASB issued ASU2016-08, which amends the principle versus agent guidance in the revenue standard. In April 2016, the FASB issued ASU2016-10, which clarifies when promised goods or services are separately identifiable in the revenue standard. In May 2016, FASB issued ASU2016-12, which provides narrow-scope improvements and practical expedients to the revenue standard. ~~While~~ WesBanco is currently evaluating the impact of this standard on individual customer contracts, management has evaluated the impact of this standard on the broad categories of its customer contracts and revenue streams. WesBanco currently anticipates this standard will not have a material impact on its Consolidated Financial Statements because revenue related to financial instruments, including loans and investment securities are not in scope ofadopted these updates. Loan interest income, investment interest income, insurance services revenue and BOLI are accounted for under other U.S. GAAP standards and are therefore, out of scope of the ASC 606 revenue standard. Trust fees, service charges on deposits, electronic banking fees, net securities brokerage revenue, net gains on sales of mortgage loans, and net gain on other real estate owned and other assets are in scope of the ASC 606 revenue standard. The Company is currently reviewing contracts related to these revenue streams. The Company does not anticipate any material changes to revenue recognition; however, the Company’s review is still ongoing. The Company plans to adopt the revenue recognition standardpronouncements as of January 1, ~~2018.~~

In January 2014, the FASB issued ASU No. 2014-01, which applies to all reporting entities that invest in qualified affordable housing projects through limited liability entities. The pronouncement permits reporting entities to make an accounting policy election to account for these investments2018 using the proportional amortization method if certain conditions exist. The pronouncement also requires disclosure that enables users of its financial statements to understand the nature of these investments in proportionmodified retrospective approach. WesBanco noted no material change to the ~~tax credits~~timing of revenue recognition and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The pronouncement is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. WesBanco made an accounting policy election to adopt the ASU in the first quarter of 2017. With the adoption of this pronouncement, WesBanco now classifies the amortization of the investment as a component of income tax expense (benefit). The amount for the three and six months ending June 30, 2017there was ~~$0.3 million and $0.8 million, respectively, which is included in income tax expense within~~no material impact on WesBanco’s Consolidated Financial Statements. See Note 9, Revenue Recognition for further discussion on revenue within the scope of ASC 606.

On ~~September 9, 2016,~~April 5, 2018, WesBanco completed its acquisition of ~~Your Community Bankshares,~~First Sentry Bancshares, Inc. (“~~YCB”~~FTSB”), ~~and its wholly-owned banking subsidiary, Your Community Bank (“YCB Bank”), an Indiana state-chartered commercial~~a bank holding company headquartered in ~~New Albany, Indiana. The transaction expanded WesBanco’s franchise into Kentucky and southern Indiana.~~

Huntington, WV. On the acquisition date, ~~YCB~~FTSB had approximately ~~$1.5 billion~~$706.1 million in ~~total~~ assets, excluding goodwill, ~~including~~which included approximately ~~$1.0 billion~~$448.3 million in loans and ~~$173.2~~$142.9 million in securities. The ~~YCB~~FTSB acquisition was valued at ~~$220.5~~$108.3 million, based on WesBanco’s closing stock price on ~~September 9, 2016~~April 5, 2018, of ~~$32.62,~~$42.96, and resulted in WesBanco issuing ~~5,423,348~~2,498,761 shares of its common stock and ~~$43.3~~$1.0 million in cash in exchange for all of the outstanding shares of ~~YCB~~FTSB common ~~stock.~~stock including stock options. The assets and liabilities of ~~YCB~~FTSB were recorded on WesBanco’s ~~balance sheet~~Balance Sheet at their preliminary estimated fair ~~value~~values as of ~~September 9, 2016,~~April 5, 2018, the acquisition date, and ~~YCB’s~~FTSB’s results of operations have been included in WesBanco’s Consolidated Statements of Income since that date. Due to the timing of the acquisition relative to the end of the reporting period, the fair values for certain assets and liabilities acquired from ~~YCB~~FTSB on ~~September 9, 2016 represented~~April 5, 2018 represent preliminary estimates. Based on ~~the~~a preliminary purchase price allocation, WesBanco recorded ~~$93.0~~$66.2 million in goodwill and ~~$12.0~~$8.2 million in core deposit intangibles in its ~~Community Banking~~community banking segment, representing the principal change in goodwill and intangibles ~~in 2016.~~from December 31, 2017. None of the goodwill is deductible for income tax purposes, as the acquisition is accounted for as atax-free exchange for tax purposes. As a result of the full integration of the operations of FTSB, it is not practicable to determine revenue or net income included in WesBanco’s operating results relating to FTSB since the date of acquisition, as FTSB’s results cannot be separately identified.

For the six months ended June 30, ~~2017 and for the twelve months ended December 31, 2016,~~2018, WesBanco recorded merger-related expenses of ~~$0.5~~$5.0 million ~~and $13.3 million, respectively,~~ associated with the ~~YCB~~FTSB acquisition.

The preliminary purchase price of the ~~YCB~~FTSB acquisition and resulting goodwill is summarized as follows:


*(unaudited, in thousands)*	September 9, 2016			April 5, 2018
Purchase Price:
Fair value of WesBanco shares issued	$	177,149		$	107,347
Cash consideration for outstanding YCB shares		43,349
Cash consideration for outstanding FTSB shares					975

Total purchase price	$	220,498		$	108,322
Fair value of:
Tangible assets acquired	$	1,398,183		$	610,712
Core deposit and other intangible assets acquired		11,957			8,237
Liabilities assumed		(1,330,887	)		(663,970	)
Net cash received in the acquisition		48,212			87,124

Fair value of net assets acquired	$	127,465			42,103

Goodwill recognized	$	93,033		$	66,219

The following table presents the preliminary allocation of the purchase price of the assets acquired and the liabilities assumed at the date of ~~acquisition.~~acquisition, as WesBanco intends to finalize its accounting for the acquisition of FTSB within one year from the date of acquisition:


*(unaudited, in thousands)*	September 9, 2016		April 5, 2018
Assets acquired
Cash and due from banks	$	48,212	$	87,124
Securities		173,223		142,903
Loans		1,012,410		448,339
Goodwill and other intangible assets		104,990		74,456
Accrued income and other assets ~~(1)~~		212,550		19,470

Total assets acquired	$	1,551,385	$	772,292

Liabilities assumed
Deposits	$	1,193,010	$	590,018
Borrowings		123,001		70,710
Accrued expenses and other liabilities		14,876		3,242

Total liabilities assumed		1,330,887	$	663,970

Net assets acquired	$	220,498	$	108,322

~~The following table presents~~On April 19, 2018, WesBanco and Farmers Capital Bank Corporation (“FFKT”), a bank holding company headquartered in Frankfort, Kentucky with approximately $1.7 billion in assets, $1.4 billion in deposits, $1.0 billion in loans and 34 branches, jointly announced that a definitive Agreement and Plan of Merger was executed providing for the ~~changes~~merger of FFKT with and into WesBanco. On the date of the announcement, the transaction was valued at approximately $378.2 million. Under the terms of the Agreement and Plan of Merger, which has been approved by the board of directors of both companies, WesBanco will exchange a combination of its common stock and cash for FFKT common stock. FFKT’s shareholders will be entitled to receive 1.053 shares of WesBanco common stock and cash in the ~~preliminary allocation~~amount of ~~the purchase price~~$5.00 per share for each share of ~~the assets acquired and the liabilities assumed~~FFKT common stock for a total value of approximately $50.31 per share at the date of announcement. The receipt by FFKT shareholders of shares of WesBanco common stock in exchange for their shares of FFKT’s common stock is anticipated to qualify as atax-free exchange. The acquisition has been approved by the ~~acquisition previously reported as~~appropriate banking regulatory authorities and the shareholders of ~~December 31, 2016:~~

~~While purchase accounting~~FFKT. It is ~~substantially complete, there may~~expected that the transaction will be ~~subsequent adjustments to other assets and other liabilities. The Company expects to finalize purchase accounting~~completed in the third quarter ~~or within one year~~ of 2018. For the ~~date~~six months ended June 30, 2018, WesBanco has recorded merger-related expenses of $0.7 million associated with the FFKT acquisition.


*(unaudited, in thousands, except shares* *and per share amounts)*	For the Three Months Ended June 30,				For the Six Months Ended June 30,
										For the Three Months Ended June 30,				For the Six Months Ended June 30,
*(unaudited, in thousands, except shares* *and per share amounts)*	2017		2016		2017		2016			2018		2017		2018		2017
									Numerator for both basic and diluted earnings per common share:
Net income	$	26,341	$	22,109	$	52,228	$	44,982		$	33,169	$	26,341	$	66,698	$	52,228

Denominator:
Total average basic common shares outstanding		43,995,749		38,373,610		43,971,789		38,380,296			46,498,305		43,995,749		45,281,264		43,971,789
Effect of dilutive stock options and other stock compensation		65,672		36,783		75,023		34,626			141,475		65,672		135,746		75,023

Total diluted average common shares outstanding		44,061,421		38,410,393		44,046,812		38,414,922			46,639,780		44,061,421		45,417,010		44,046,812

Earnings per common share – basic	$	0.60	$	0.58	$	1.19	$	1.17		$	0.71	$	0.60	$	1.47	$	1.19
Earnings per common share – diluted	$	0.60	$	0.58	$	1.19	$	1.17		$	0.71	$	0.60	$	1.47	$	1.19

Options to purchase ~~117,550~~117,600 shares and ~~186,350~~117,550 shares at June 30, ~~2017~~2018 and ~~2016,~~2017, respectively, were not included in the computation of net income per diluted share for the three months ended June 30, 2018 and 2017, respectively, because the exercise price was greater than the average market price of the common shares and, ~~2016, respectively,~~therefore, the effect would be antidilutive. Options to purchase 117,600 shares at June 30, 2018 were not included in the computation of net income per diluted share for the six months ended June 30, 2018 because the exercise price was greater than the average market price of the common shares, and therefore, the effect would be antidilutive. All stock options were included in the computation of net income per diluted share for the six months ended June 30, 2017. ~~Options to purchase 186,350 shares at~~

As of June 30, 2018, contingently issuable shares totaling 42,912, were estimated to be awarded under the 2018 and 2017 total shareholder return plans as stock performance targets have been met to date and are included in the diluted calculation. As of June 30, 2018, the shares related to the 2016 total shareholder return plans were not included in the computation of net income per diluted share for the six months ended June 30, 2016 because the exercise price was greater than the average market price of the common shares and, therefore, the effect would be antidilutive.

~~As of June 30, 2017, 24,000 shares of restricted stock were not included in the computation of net income per diluted share for the three and six months ended June 30, 2017~~calculation because the effect would be antidilutive. ~~There were no antidilutive shares of~~Performance-based restricted stock ~~excluded from the computation~~compensation totaling 17,081 shares were estimated to be awarded as of ~~net income for the three or six months ended~~ June 30, ~~2016.~~2018 and are included in the diluted calculation.

On ~~September 9, 2016,~~April 5, 2018, WesBanco issued ~~5,423,348~~2,498,761 shares of common stock ~~(109,257 of which shares were treasury stock)~~ to complete its acquisition of ~~YCB.~~FTSB and granted 9,465 shares of restricted stock to certain FTSB employees. These shares are included in average shares outstanding beginning on that date. For additional information relating to the ~~YCB~~FTSB acquisition, refer to Note 2, “Mergers and Acquisitions.”

The following table presents the fair value and amortized cost ofavailable-for-sale andheld-to-maturity debt securities:


	June 30, 2017									December 31, 2016									June 30, 2018									December 31, 2017
*(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		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
Available-for-sale debt securities
U.S. Treasury																			$	9,926	$	—	$	(13	)	$	9,913	$	—	$	—	$	—		$	—
U.S. Government sponsored entities and agencies	$	44,307	$	9	$	(480	)	$	43,836	$	54,803	$	3	$	(763	)	$	54,043		103,152		—		(2,470	)		100,682		72,425		24		(606	)		71,843
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		938,425		811		(12,477	)		926,759		953,475		884		(16,070	)		938,289		1,413,937		98		(40,618	)		1,373,417		954,115		214		(19,407	)		934,922
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		116,584		90		(1,152	)		115,522		98,922		27		(2,139	)		96,810
Commerical mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies																				145,104		55		(4,512	)		140,647		116,448		4		(1,585	)		114,867
Obligations of states and political subdivisions		110,020		3,358		(703	)		112,675		110,208		3,114		(1,659	)		111,663		126,143		1,866		(1,210	)		126,799		102,363		2,927		(460	)		104,830
Corporate debt securities		35,263		177		(101	)		35,339		35,292		117		(108	)		35,301		45,070		211		(168	)		45,113		35,234		228		(59	)		35,403

Total debt securities	$	1,244,599	$	4,445	$	(14,913	)	$	1,234,131	$	1,252,700	$	4,145	$	(20,739	)	$	1,236,106
Equity securities		4,238		1,056		(5	)		5,289		4,062		1,032		(24	)		5,070
Totalavailable-for-sale debt securities																			$	1,843,332	$	2,230	$	(48,991	)	$	1,796,571	$	1,280,585	$	3,397	$	(22,117	)	$	1,261,865

Total available-for-sale securities	$	1,248,837	$	5,501	$	(14,918	)	$	1,239,420	$	1,256,762	$	5,177	$	(20,763	)	$	1,241,176

Held-to-maturity
Held-to-maturity debt securities
U.S. Government sponsored entities and agencies	$	12,319	$	—	$	(296	)	$	12,023	$	13,394	$	—	$	(414	)	$	12,980	$	11,877	$	—	$	(390	)	$	11,487	$	11,465	$	—	$	(325	)	$	11,140
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		187,385		802		(1,638	)		186,549		215,141		1,279		(2,563	)		213,857		161,090		203		(5,740	)		155,553		170,025		544		(2,609	)		167,960
Obligations of states and political subdivisions		796,307		20,528		(1,289	)		815,546		805,019		15,652		(5,529	)		815,142		813,456		9,017		(6,065	)		816,408		794,655		17,364		(1,609	)		810,410
Corporate debt securities		34,383		889		(16	)		35,256		34,413		418		(20	)		34,811		33,323		4		(664	)		32,663		33,355		919		—			34,274

Total held-to-maturity securities	$	1,030,394	$	22,219	$	(3,239	)	$	1,049,374	$	1,067,967	$	17,349	$	(8,526	)	$	1,076,790
Totalheld-to-maturity debt securities																			$	1,019,746	$	9,224	$	(12,859	)	$	1,016,111	$	1,009,500	$	18,827	$	(4,543	)	$	1,023,784

Total	$	2,279,231	$	27,720	$	(18,157	)	$	2,288,794	$	2,324,729	$	22,526	$	(29,289	)	$	2,317,966
Total debt securities																			$	2,863,078	$	11,454	$	(61,850	)	$	2,812,682	$	2,290,085	$	22,224	$	(26,660	)	$	2,285,649

~~Trading~~At June 30, 2018, and December 31, 2017, there were no holdings of any one issuer, other than U.S. government sponsored entities and its agencies, in an amount greater than 10% of WesBanco’s shareholders’ equity.

Equity securities, of which $8.3 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 ~~$7.9 million and $7.1~~$13.5 million at June 30, ~~2017~~2018 and December 31, ~~2016, respectively.~~2017.

At June 30, 2017 and December 31, 2016, there were no holdings of any one issuer, other than U.S. government sponsored entities and its agencies, in an amount greater than 10% of WesBanco’s shareholders’ equity.

The following table presents the fair value ofavailable-for-sale andheld-to-maturity debt securities by contractual maturity at June 30, ~~2017.~~2018. In some instances, the issuers may have the right to call or prepay obligations without penalty prior to the contractual maturity date.


	June 30, 2017												June 30, 2018
*(unaudited, in thousands)*	One Year or less		One to Five Years		Five to Ten Years		After Ten Years		Mortgage-backed and Equity		Total		One Year or less		One to Five Years		Five to Ten Years		After Ten Years		Mortgage-backed securities		Total
Available-for-sale
Available-for-sale debt securities
U.S. Treasury													$	9,913	$	—	$	—	$	—	$	—	$	9,913
U.S. Government sponsored entities and agencies	$	—	$	11,972	$	16,849	$	6,898	$	8,117	$	43,836		10,459		6,302		13,739		6,802		63,380		100,682
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies⁽¹⁾		—		—		—		—		926,759		926,759		—		—		—		—		1,373,417		1,373,417
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies⁽¹⁾		—		—		—		—		115,522		115,522		—		—		—		—		140,647		140,647
Obligations of states and political subdivisions		9,038		20,278		37,662		45,697		—		112,675		9,629		23,831		51,042		42,297		—		126,799
Corporate debt securities		—		30,330		3,062		1,947		—		35,339		9,801		33,364		1,948		—		—		45,113
Equity securities⁽²⁾		—		—		—		—		5,289		5,289

Total available-for-sale securities	$	9,038	$	62,580	$	57,573	$	54,542	$	1,055,687	$	1,239,420
Totalavailable-for-sale debt securities													$	39,802	$	63,497	$	66,729	$	49,099	$	1,577,444	$	1,796,571

Held-to-maturity⁽³⁾
Held-to-maturity debt securities⁽²⁾
U.S. Government sponsored entities and agencies	$	—	$	—	$	—	$	—	$	12,023	$	12,023	$	—	$	—	$	—	$	—	$	11,487	$	11,487
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies⁽¹⁾		—		—		—		—		186,549		186,549		—		—		—		—		155,553		155,553
Obligations of states and political subdivisions		3,535		78,391		405,143		328,477		—		815,546		6,410		123,247		393,073		293,678				816,408
Corporate debt securities		—		981		34,275		—		—		35,256		—		7,448		25,215		—		—		32,663

Total held-to-maturity securities	$	3,535	$	79,372	$	439,418	$	328,477	$	198,572	$	1,049,374
Totalheld-to-maturity debt securities													$	6,410	$	130,695	$	418,288	$	293,678	$	167,040	$	1,016,111

Total	$	12,573	$	141,952	$	496,991	$	383,019	$	1,254,259	$	2,288,794
Total debt securities													$	46,212	$	194,192	$	485,017	$	342,777	$	1,744,484	$	2,812,682

Securities with aggregate fair values of ~~$1.3~~$1.6 billion and ~~$1.2~~$1.4 billion at June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively, were pledged as security for public and trust funds, and securities sold under agreements to repurchase. Proceeds from the sale ofavailable-for-sale securities were ~~$7.8~~$81.5 million and ~~$109.6~~$7.8 million for the six months ended June 30, ~~2017~~2018 and ~~2016,~~2017, respectively. Net unrealized losses onavailable-for-sale securities included in accumulated other comprehensive income net of tax, as of June 30, ~~2017~~2018 and December 31, ~~2016,~~2017 were ~~$5.9~~$36.0 million and ~~$9.9~~$13.3 million, respectively.

The following table presents the gross realized gains and losses on sales and calls ofavailable-for-sale andheld-to-maturity debt securities, as well as gains and ~~held-to-maturity~~losses on equity securities for the three and six months ended June 30, 2018 and 2017, ~~and 2016,~~ respectively. ~~Gains and losses due to fair value fluctuations on trading securities are included in non-interest income under other income, with an offsetting entry in compensation expense.~~


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,						For the Three Months Ended June 30,					For the Six Months Ended June 30,
*(unaudited, in thousands)*	2017			2016			2017			2016			2018		2017			2018			2017
Debt securities:
Gross realized gains	$	562		$	778		$	574		$	1,916		$	5	$	562		$	12		$	574
Gross realized losses		(68	)		(193	)		(68	)		(220	)		—		(68	)		(18	)		(68	)

Net realized gains	$	494		$	585		$	506		$	1,696
Net gains (losses) on debt securities													$	5	$	494		$	(6	)	$	506

Equity securities:
Unrealized gains recognized on securities still held													$	347	$	—		$	319		$	—
Net realized gains recognized on securities sold														6		—			6			—

Net gains on equity securities													$	353	$	—		$	325		$	—

Net securities gains													$	358	$	494		$	319		$	506

The following tables provide information on unrealized losses on ~~investment~~debt securities that have been in an unrealized loss position for less than twelve months and twelve months or more as of June 30, ~~2017~~2018 and December 31, ~~2016:~~2017:


																						June 30, 2018
	June 30, 2017																					Less than 12 months							12 months or more							Total
	Less than 12 months							12 months or more							Total							Fair		Unrealized			# of		Fair		Unrealized			# of		Fair		Unrealized			# of
*(unaudited, dollars in thousands)*	Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities		Value		Losses			Securities		Value		Losses			Securities		Value		Losses			Securities
U.S. Treasury																						$	9,913	$	(13	)		1	$	—	$	—			—	$	9,913	$	(13	)		1
U.S. Government sponsored entities and agencies	$	36,989	$	(744	)		8	$	9,968	$	(32	)		1	$	46,957	$	(776	)		9		71,179		(1,885	)		23		40,491		(975	)		8		111,670		(2,860	)		31
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		898,142		(11,884	)		224		71,302		(2,231	)		19		969,444		(14,115	)		243		864,036		(16,625	)		160		610,641		(29,733	)		201		1,474,677		(46,358	)		361
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		97,844		(1,135	)		14		667		(17	)		2		98,511		(1,152	)		16		104,546		(3,531	)		13		23,225		(981	)		4		127,771		(4,512	)		17
Obligations of states and political subdivisions		169,042		(1,954	)		309		2,315		(38	)		3		171,357		(1,992	)		312		357,070		(5,019	)		571		76,447		(2,256	)		163		433,517		(7,275	)		734
Corporate debt securities		—		—			—		11,939		(117	)		4		11,939		(117	)		4		43,559		(791	)		21		1,948		(41	)		1		45,507		(832	)		22
Equity securities		1,357		(5	)		1		—		—			—		1,357		(5	)		1

Total temporarily impaired securities	$	1,203,374	$	(15,722	)		556	$	96,191	$	(2,435	)		29	$	1,299,565	$	(18,157	)		585	$	1,450,303	$	(27,864	)		789	$	752,752	$	(33,986	)		377	$	2,203,055	$	(61,850	)		1,166


																						December 31, 2017
	December 31, 2016																					Less than 12 months							12 months or more							Total
	Less than 12 months							12 months or more							Total							Fair		Unrealized			# of		Fair		Unrealized			# of		Fair		Unrealized			# of
*(unaudited, dollars in thousands)*	Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities		Value		Losses			Securities		Value		Losses			Securities		Value		Losses			Securities
U.S. Government sponsored entities and agencies	$	58,108	$	(1,177	)		11	$	—	$	—			—	$	58,108	$	(1,177	)		11	$	24,776	$	(160	)		4	$	42,248	$	(771	)		8	$	67,024	$	(931	)		12
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		969,174		(16,436	)		232		58,839		(2,197	)		14		1,028,013		(18,633	)		246		423,794		(5,039	)		87		637,461		(16,977	)		193		1,061,255		(22,016	)		280
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		88,169		(2,122	)		14		679		(17	)		2		88,848		(2,139	)		16		79,061		(1,089	)		10		27,852		(496	)		6		106,913		(1,585	)		16
Obligations of states and political subdivisions		364,583		(7,121	)		604		2,047		(67	)		3		366,630		(7,188	)		607		132,831		(852	)		210		77,554		(1,217	)		160		210,385		(2,069	)		370
Corporate debt securities		10,011		(78	)		3		5,973		(50	)		2		15,984		(128	)		5		4,015		(19	)		1		1,948		(40	)		1		5,963		(59	)		2
Equity securities		2,938		(24	)		2		—		—			—		2,938		(24	)		2

Total temporarily impaired securities	$	1,492,983	$	(26,958	)		866	$	67,538	$	(2,331	)		21	$	1,560,521	$	(29,289	)		887	$	664,477	$	(7,159	)		312	$	787,063	$	(19,501	)		368	$	1,451,540	$	(26,660	)		680

Unrealized losses on debt securities in the tables represent temporary fluctuations resulting from changes in market rates in relation to fixed yields. Unrealized losses in theavailable-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, and therefore, management believes the unrealized losses detailed above are temporary and no impairment loss relating to these securities has been recognized.

Securities that do not have readily determinable fair values and for which WesBanco does not exercise significant influence are carried at cost. Cost method investments consist primarily of FHLB of Pittsburgh, Cincinnati and Indianapolis stock totaling ~~$49.1~~$59.3 million and ~~$46.4~~$45.9 million at June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, 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.

The recorded investment in loans is presented in the Consolidated Balance Sheets net of deferred loan fees and costs, and discounts on purchased loans. The net deferred loan ~~(costs) and fees~~costs were ~~$(0.1)~~$2.4 million and ~~$0.3~~$1.6 million at June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively. The unamortized discount on purchased loans from acquisitions was ~~$25.0~~$31.4 million, including ~~$12.7~~$11.9 million related to ~~YCB,~~FTSB, and ~~$24.1~~$21.9 million at June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively.


*(unaudited, in thousands)*	June 30, 2017		December 31, 2016		June 30, 2018		December 31, 2017
Commercial real estate:
Land and construction	$	615,881	$	496,539	$	481,690	$	392,597
Improved property		2,397,846		2,376,972		2,707,645		2,601,851

Total commercial real estate		3,013,727		2,873,511		3,189,335		2,994,448

Commercial and industrial		1,136,195		1,088,118		1,294,488		1,125,327
Residential real estate		1,363,579		1,383,390		1,450,829		1,353,301
Home equity		516,612		508,359		535,653		529,196
Consumer		360,304		396,058		322,594		339,169

Total portfolio loans		6,390,417		6,249,436		6,792,899		6,341,441

Loans held for sale		21,677		17,315		12,053		20,320

Total loans	$	6,412,094	$	6,266,751	$	6,804,952	$	6,361,761

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 Six Months Ended June 30, 2018 and 2017
																									Commercial			Commercial
																									Real Estate-			Real Estate-
	Allowance for Credit Losses By Category For the Six Months Ended June 30, 2017 and 2016																								Land and			Improved			Commercial			Residential			Home						Deposit
*(unaudited, in thousands)*	Commercial Real Estate- Land and Construction			Commercial Real Estate- Improved Property			Commercial & Industrial			Residential Real Estate			Home Equity			Consumer			Deposit Overdraft			Total			Construction			Property			& Industrial			Real Estate			Equity			Consumer			Overdraft			Total
Balance at December 31, 2017:
Allowance for loan losses																									$	3,117		$	21,166		$	9,414		$	3,206		$	4,497		$	3,063		$	821		$	45,284
Allowance for loan commitments																										119			26			173			7			212			37			—			574

Total beginning allowance for credit losses																										3,236			21,192			9,587			3,213			4,709			3,100			821			45,858

Provision for credit losses:
Provision for loan losses																										1,465			(1,774	)		2,100			944			54			615			439			3,843
Provision for loan commitments																										44			(8	)		2			2			(7	)		—			—			33

Total provision for credit losses																										1,509			(1,782	)		2,102			946			47			615			439			3,876

Charge-offs																										(136	)		(692	)		(616	)		(509	)		(672	)		(1,793	)		(541	)		(4,959	)
Recoveries																										264			776			636			252			279			1,066			197			3,470

Net charge-offs																										128			84			20			(257	)		(393	)		(727	)		(344	)		(1,489	)

Balance at June 30, 2018:
Allowance for loan losses																										4,710			19,476			11,534			3,893			4,158			2,951			916			47,638
Allowance for loan commitments																										163			18			175			9			205			37			—			607

Total ending allowance for credit losses																									$	4,873		$	19,494		$	11,709		$	3,902		$	4,363		$	2,988		$	916		$	48,245

Balance at December 31, 2016:
Allowance for loan losses	$	4,348		$	18,628		$	8,412		$	4,106		$	3,422		$	3,998		$	760		$	43,674		$	4,348		$	18,628		$	8,412		$	4,106		$	3,422		$	3,998		$	760		$	43,674
Allowance for loan commitments		151			17			188			9			162			44			—			571			151			17			188			9			162			44			—			571

Total beginning allowance for credit losses		4,499			18,645			8,600			4,115			3,584			4,042			760			44,245			4,499			18,645			8,600			4,115			3,584			4,042			760			44,245

Provision for credit losses:
Provision for loan losses		1,039			558			1,552			39			466			970			444			5,068			1,039			558			1,552			39			466			970			444			5,068
Provision for loan commitments		14			1			(9	)		1			17			2			—			26			14			1			(9	)		1			17			2			—			26

Total provision for credit losses		1,053			559			1,543			40			483			972			444			5,094			1,053			559			1,543			40			483			972			444			5,094

Charge-offs		—			(1,574	)		(1,205	)		(592	)		(293	)		(1,965	)		(611	)		(6,240	)		—			(1,574	)		(1,205	)		(592	)		(293	)		(1,965	)		(611	)		(6,240	)
Recoveries		70			376			475			164			151			990			181			2,407			70			376			475			164			151			990			181			2,407

Net charge-offs		70			(1,198	)		(730	)		(428	)		(142	)		(975	)		(430	)		(3,833	)		70			(1,198	)		(730	)		(428	)		(142	)		(975	)		(430	)		(3,833	)

Balance at June 30, 2017:
Allowance for loan losses		5,457			17,988			9,234			3,717			3,746			3,993			774			44,909			5,457			17,988			9,234			3,717			3,746			3,993			774			44,909
Allowance for loan commitments		165			18			179			10			179			46			—			597			165			18			179			10			179			46			—			597

Total ending allowance for credit losses	$	5,622		$	18,006		$	9,413		$	3,727		$	3,925		$	4,039		$	774		$	45,506		$	5,622		$	18,006		$	9,413		$	3,727		$	3,925		$	4,039		$	774		$	45,506

Balance at December 31, 2015:
Allowance for loan losses	$	4,390		$	14,748		$	10,002		$	4,582		$	2,883		$	4,763		$	342		$	41,710
Allowance for loan commitments		157			26			260			7			117			46			—			613

Total beginning allowance for credit losses		4,547			14,774			10,262			4,589			3,000			4,809			342			42,323

Provision for credit losses:
Provision for loan losses		1,252			(559	)		1,999			(172	)		164			898			581			4,163
Provision for loan commitments		(10	)		(13	)		(16	)		1			10			—			—			(28	)

Total provision for credit losses		1,242			(572	)		1,983			(171	)		174			898			581			4,135

Charge-offs		—			(1,328	)		(765	)		(386	)		(216	)		(2,089	)		(362	)		(5,146	)
Recoveries		3			1,168			139			306			77			790			118			2,601

Net charge-offs		3			(160	)		(626	)		(80	)		(139	)		(1,299	)		(244	)		(2,545	)

Balance at June 30, 2016:
Allowance for loan losses		5,645			14,029			11,375			4,330			2,908			4,362			679			43,328
Allowance for loan commitments		147			13			244			8			127			46			—			585

Total ending allowance for credit losses	$	5,792		$	14,042		$	11,619		$	4,338		$	3,035		$	4,408		$	679		$	43,913

The following tables present the allowance for credit losses and recorded investments in loans by category:


																	Allowance for Credit Losses and Recorded Investment in Loans
																	Commercial		Commercial
																	Real Estate-		Real Estate-		Commercial		Residential						Deposit
	Allowance for Credit Losses and Recorded Investment in Loans																Land and		Improved		and		Real		Home				Over-
*(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- draft		Total		Construction		Property		Industrial		Estate		Equity		Consumer		draft		Total
June 30, 2017
June 30, 2018
Allowance for credit losses:
Allowance for loans individually evaluated for impairment	$	—	$	897	$	—	$	—	$	—	$	—	$	—	$	897	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Allowance for loans collectively evaluated for impairment		5,457		17,091		9,234		3,717		3,746		3,993		774		44,012		4,710		19,476		11,534		3,893		4,158		2,951		916		47,638
Allowance for loan commitments		165		18		179		10		179		46		—		597		163		18		175		9		205		37		—		607

Total allowance for credit losses	$	5,622	$	18,006	$	9,413	$	3,727	$	3,925	$	4,039	$	774	$	45,506	$	4,873	$	19,494	$	11,709	$	3,902	$	4,363	$	2,988	$	916	$	48,245

Portfolio loans:
Individually evaluated for impairment⁽¹⁾	$	—	$	5,156	$	—	$	—	$	—	$	—	$	—	$	5,156	$	—	$	1,730	$	—	$	—	$	—	$	—	$	—	$	1,730
Collectively evaluated for impairment		614,353		2,385,876		1,135,243		1,362,813		516,612		360,297		—		6,375,194		479,526		2,699,410		1,293,708		1,449,729		535,629		322,594		—		6,780,596
Acquired with deteriorated credit quality		1,528		6,814		952		766		—		7		—		10,067		2,164		6,505		780		1,100		24		—		—		10,573

Total portfolio loans	$	615,881	$	2,397,846	$	1,136,195	$	1,363,579	$	516,612	$	360,304	$	—	$	6,390,417	$	481,690	$	2,707,645	$	1,294,488	$	1,450,829	$	535,653	$	322,594	$	—	$	6,792,899

December 31, 2016
December 31, 2017
Allowance for credit losses:
Allowance for loans individually evaluated for impairment	$	—	$	470	$	407	$	—	$	—	$	—	$	—	$	877	$	—	$	388	$	—	$	—	$	—	$	—	$	—	$	388
Allowance for loans collectively evaluated for impairment		4,348		18,158		8,005		4,106		3,422		3,998		760		42,797		3,117		20,778		9,414		3,206		4,497		3,063		821		44,896
Allowance for loan commitments		151		17		188		9		162		44		—		571		119		26		173		7		212		37		—		574

Total allowance for credit losses	$	4,499	$	18,645	$	8,600	$	4,115	$	3,584	$	4,042	$	760	$	44,245	$	3,236	$	21,192	$	9,587	$	3,213	$	4,709	$	3,100	$	821	$	45,858

Portfolio loans:
Individually evaluated for impairment⁽¹⁾	$	—	$	3,012	$	1,270	$	—	$	—	$	—	$	—	$	4,282	$	—	$	3,344	$	—	$	—	$	—	$	—	$	—	$	3,344
Collectively evaluated for impairment		494,928		2,364,067		1,086,445		1,382,447		508,359		396,049		—		6,232,295		391,140		2,593,393		1,124,544		1,352,587		529,196		339,163		—		6,330,023
Acquired with deteriorated credit quality		1,611		9,893		403		943		—		9		—		12,859		1,457		5,114		783		714		—		6		—		8,074

Total portfolio loans	$	496,539	$	2,376,972	$	1,088,118	$	1,383,390	$	508,359	$	396,058	$	—	$	6,249,436	$	392,597	$	2,601,851	$	1,125,327	$	1,353,301	$	529,196	$	339,169	$	—	$	6,341,441

WesBanco maintains an internal loan grading system to reflect the credit quality of commercial loans. Commercial loan risk grades are determined based on an evaluation of the relevant characteristics of each loan, assigned at the inception of each loan 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 reliability and sustainability of the primary source of repayment and overall financial strength of the borrower. This includes an analysis of cash flow available to repay debt, profitability, liquidity, leverage, and overall financial trends. Other factors include management, industry or property type risks, an assessment of secondary sources of repayment such as collateral or guarantees, other terms and conditions of the loan that may increase or reduce its risk, and economic conditions and other external factors that may influence repayment capacity and financial condition.

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 ofpre-sales for residential housing construction orpre-leases for commercial investment property. The risk grade assigned to commercial investment property loans is based primarily on the adequacy of net rental income generated by the property to service the debt, the type, quality, industry and mix of tenants, and the terms of leases, but also considers the overall financial capacity of the investors and their experience in owning and managing investment property. The risk grade assigned to owner-occupied commercial real estate and commercial and industrial loans is based primarily on historical and projected earnings, the adequacy of operating cash flow to service all of the business’ debt, and the capital resources, liquidity and leverage of the business, but also considers the industry in which the business operates, the business’ specific competitive advantages or disadvantages, the quality and experience of management, and external influences on the business such as economic conditions. ~~Other factors~~

Commercial and industrial 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. Factors that are considered for commercial and industrial loans include the type, quality and marketability ofnon-real estate collateral and whether the structure of the loan increases or reduces its risk. The type, age, condition, location and any environmental risks associated with a property are also considered for all types of commercial real estate. The overall financial condition and repayment capacity of any guarantors is also evaluated to determine the extent to which they mitigate other risks of the loan. The following paragraphs provide descriptions of risk grades that are applicable to commercial real estate and commercial and industrial loans.

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 or compromised loans are currently protected but have weaknesses, which, if not corrected, may be inadequately protected at some future date. These loans represent an unwarranted credit risk and would generally not be extended in the normal course of lending. Specific issues which may warrant this grade include declining financial results, increased reliance on secondary sources of repayment or guarantor support and adverse external influences that may negatively impact the business or property.

Substandard and doubtful loans are equivalent to the classifications used by banking regulators. Substandard loans are inadequately protected by the current repayment capacity and equity of the borrower or collateral pledged, if any. Substandard loans have one or more well-defined weaknesses that jeopardize their repayment or collection in full. These loans may or may not be reported asnon-accrual. Doubtful loans have all the weaknesses inherent to a substandard loan with the added characteristic that full repayment is highly questionable or improbable on the basis of currently existing facts, conditions and collateral values. However, recognition of loss may be deferred if there are reasonably specific pending factors that will reduce the risk if they occur.


	Commerical Loans by Internally Assigned Risk Grade								Commerical 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		Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans
As of June 30, 2017
As of June 30, 2018
Pass	$	609,309	$	2,341,928	$	1,118,983	$	4,070,220	$	476,242	$	2,656,226	$	1,278,328	$	4,410,796
Criticized - compromised		3,910		26,046		9,278		39,234		2,728		27,809		3,508		34,045
Classified - substandard		2,662		29,872		7,934		40,468		2,720		23,610		12,652		38,982
Classified - doubtful		—		—		—		—		—		—		—		—

Total	$	615,881	$	2,397,846	$	1,136,195	$	4,149,922	$	481,690	$	2,707,645	$	1,294,488	$	4,483,823

As of December 31, 2016
As of December 31, 2017
Pass	$	489,380	$	2,324,755	$	1,072,751	$	3,886,886	$	386,753	$	2,548,805	$	1,110,267	$	4,045,825
Criticized - compromised		4,405		15,295		5,078		24,778		2,984		25,673		7,435		36,092
Classified - substandard		2,754		36,922		10,289		49,965		2,860		27,373		7,625		37,858
Classified - doubtful		—		—		—		—		—		—		—		—

Total	$	496,539	$	2,376,972	$	1,088,118	$	3,961,629	$	392,597	$	2,601,851	$	1,125,327	$	4,119,775

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 ~~were $20.4~~was $20.3 million at June 30, ~~2017~~2018 and ~~$20.6~~$22.8 million at December 31, ~~2016,~~2017, of which ~~$3.4~~$1.3 and $2.5 million were accruing, for each ~~period.~~period, respectively. The aggregate amount of residential real estate, home equity and consumer loans classified as substandard are not included in the tables above.

Acquired ~~YCB~~FTSB Loans — In conjunction with the FTSB acquisition, WesBanco acquired loans with a book value of $465.9 million as of April 5, 2018. These loans were recorded at the preliminary fair value of $448.3 million, with $432.3 million categorized as ASC310-20 loans. The fair market value adjustment on these loans of $10.3 million at acquisition date is expected to be recognized into interest income on a level yield basis over the remaining expected life of the loans.

Loans acquired with deteriorated credit quality with a book value of $5.5 million were recorded at the preliminary fair value of $3.1 million, of which $0.7 million were accounted for under the cost recovery method in accordance with ASC310-30 as cash flows cannot be reasonably estimated, and categorized asnon-accrual.

The carrying amount of loans acquired ~~from YCB~~ with deteriorated credit quality at June 30, ~~2017~~2018 was $3.0 million, while the outstanding customer balance was $5.4 million. At June 30, 2018 no allowance for loan losses has been recognized related to the acquired impaired loans.

Certain acquired underperforming loans with a book value of $17.7 million were sold prior to June 30, 2018 for $12.9 million. The acquisition date fair value of the acquired loans was adjusted to the sale price resulting in no gain or loss.

Other Acquired Loans— The carrying amount of other loans acquired with deteriorated credit quality at June 30, 2018 and December 31, ~~2016~~2017 was ~~$5.8~~$7.6 million and ~~$5.7~~$8.0 million, respectively, of which ~~$0.8~~$4.1 million and ~~$1.4~~$4.3 million, respectively, were accounted for under the cost recovery method in accordance with ASC310-30 as cash flows cannot be reasonably estimated, and therefore ~~are~~were categorized asnon-accrual. At June 30, ~~2017,~~2018, the accretable yield was ~~$1.1~~$7.1 million. At June 30, ~~2017~~2018 and December 31, ~~2016,~~2017 an allowance for loan ~~loss~~losses of ~~$0.1~~$2.2 million and ~~$0,~~$2.0 million, respectively, has been recognized related to ~~the YCB~~other acquired impaired loans, as the estimates for future cash flows on these loans have been negatively impacted.

~~Acquired ESB Loans~~ — The carrying amount of loans acquired from ESB with deteriorated credit quality at June 30, 2017 and December 31, 2016 was $4.3 million and $7.2 million, respectively, of which $3.5 million and $0, respectively, were accounted for under the cost recovery method in accordance with ASC 310-30, as cash flows cannot be reasonably estimated, and therefore are categorized as non-accrual. At June 30, 2017, the accretable yield was $0.9 million. At June 30, 2017 and December 31, 2016 an allowance for loan loss of $2.0 million and $1.8 million, respectively, has been recognized related to the ESB acquired impaired loans, as the estimates for future cash flows on these loans have been negatively impacted.

The following table provides changes in accretable yield for loans acquired with deteriorated credit quality:


	For the Six Months Ended						For the Six Months Ended
*(unaudited, in thousands)*	June 30, 2017			June 30, 2016			June 30, 2018			June 30, 2017
Balance at beginning of period	$	1,717		$	1,206		$	1,724		$	1,717
Acquisitions		—			—			—			—
Reduction due to change in projected cash flows								(86	)		—
Reclass from non-accretable difference		738			1,064			5,877			738
Transfers		(216	)		(328	)
Transfers out								—			(216	)
Accretion		(279	)		(266	)		(440	)		(279	)

Balance at end of period	$	1,960		$	1,676		$	7,075		$	1,960


	Age Analysis 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⁾			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 June 30, 2017
As of June 30, 2018
Commercial real estate:
Land and construction	$	611,756	$	3,817	$	27	$	281	$	4,125	$	615,881	$	—		$	481,156	$	287	$	75	$	172	$	534	$	481,690	$	172
Improved property		2,385,823		777		1,499		9,747		12,023		2,397,846		808			2,697,718		1,408		165		8,354		9,927		2,707,645		250

Total commercial real estate		2,997,579		4,594		1,526		10,028		16,148		3,013,727		808			3,178,874		1,695		240		8,526		10,461		3,189,335		422
Commercial and industrial		1,131,611		979		847		2,758		4,584		1,136,195		30			1,290,411		744		435		2,898		4,077		1,294,488		219
Residential real estate		1,350,915		1,568		3,176		7,920		12,664		1,363,579		1,472			1,435,731		5,469		2,798		6,831		15,098		1,450,829		255
Home equity		509,747		2,478		419		3,968		6,865		516,612		1,284			529,625		1,593		1,232		3,203		6,028		535,653		477
Consumer		355,665		2,853		1,002		784		4,639		360,304		616			319,157		2,025		569		843		3,437		322,594		508

Total portfolio loans		6,345,517		12,472		6,970		25,458		44,900		6,390,417		4,210			6,753,798		11,526		5,274		22,301		39,101		6,792,899		1,881
Loans held for sale		21,677		—		—		—		—		21,677		—			12,053		—		—		—		—		12,053		—

Total loans	$	6,367,194	$	12,472	$	6,970	$	25,458	$	44,900	$	6,412,094	$	4,210		$	6,765,851	$	11,526	$	5,274	$	22,301	$	39,101	$	6,804,952	$	1,881

Impaired loans included above are as follows:															Impaired loans included above are as follows:
Non-accrual loans	$	12,301	$	352	$	2,353	$	21,229	$	23,934	$	36,235				$	8,525	$	1,316	$	1,734	$	20,406	$	23,456	$	31,981
TDRs accruing interest⁽¹⁾		6,690		48		84		19		151		6,841					6,053		139		254		14		407		6,460

Total impaired	$	18,991	$	400	$	2,437	$	21,248	$	24,085	$	43,076				$	14,578	$	1,455	$	1,988	$	20,420	$	23,863	$	38,441

As of December 31, 2016
As of December 31, 2017
Commercial real estate:
Land and construction	$	496,245	$	—	$	—	$	294	$	294	$	496,539	$	—		$	392,189	$	—	$	172	$	236	$	408	$	392,597	$	—
Improved property		2,367,790		1,154		363		7,665		9,182		2,376,972		318			2,589,704		374		1,200		10,573		12,147		2,601,851		243

Total commercial real estate		2,864,035		1,154		363		7,959		9,476		2,873,511		318			2,981,893		374		1,372		10,809		12,555		2,994,448		243
Commercial and industrial		1,082,390		2,508		1,011		2,209		5,728		1,088,118		229			1,121,957		572		196		2,602		3,370		1,125,327		20
Residential real estate		1,365,956		6,701		1,043		9,690		17,434		1,383,390		1,922			1,338,240		4,487		2,376		8,198		15,061		1,353,301		1,113
Home equity		502,087		2,358		862		3,052		6,272		508,359		626			522,584		2,135		683		3,794		6,612		529,196		742
Consumer		390,354		3,674		1,149		881		5,704		396,058		644			334,723		2,466		842		1,138		4,446		339,169		608

Total portfolio loans		6,204,822		16,395		4,428		23,791		44,614		6,249,436		3,739			6,299,397		10,034		5,469		26,541		42,044		6,341,441		2,726
Loans held for sale		17,315		—		—		—		—		17,315		—			20,320		—		—		—		—		20,320		—

Total loans	$	6,222,137	$	16,395	$	4,428	$	23,791	$	44,614	$	6,266,751	$	3,739		$	6,319,717	$	10,034	$	5,469	$	26,541	$	42,044	$	6,361,761	$	2,726

Impaired loans included above are as follows:															Impaired loans included above are as follows:
Non-accrual loans	$	7,570	$	3,479	$	923	$	19,812	$	24,214	$	31,784				$	9,195	$	1,782	$	2,033	$	23,815	$	27,630	$	36,825
TDRs accruing interest⁽¹⁾		7,014		342		50		240		632		7,646					6,055		348		168		—		516		6,571

Total impaired	$	14,584	$	3,821	$	973	$	20,052	$	24,846	$	39,430				$	15,250	$	2,130	$	2,201	$	23,815	$	28,146	$	43,396


													Impaired Loans
													June 30, 2018								December 31, 2017
	Impaired Loans												Unpaid Principal Balance⁽¹⁾		Recorded Investment			Related Allowance			Unpaid Principal Balance⁽¹⁾			Recorded Investment			Related Allowance
	June 30, 2017						December 31, 2016
*(unaudited, in thousands)*	Unpaid Principal Balance ⁽¹⁾		Recorded Investment		Related Allowance		Unpaid Principal Balance ⁽¹⁾		Recorded Investment		Related Allowance
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	588	$	413	$	—	$	1,212	$	766	$	—	$	—		$	—		$	—		$	412		$	239		$	—
Improved property		16,234		11,136		—		9,826		8,141		—		15,521			10,889			—			18,229			12,863			—
Commercial and industrial		10,613		4,092		—		4,456		3,181		—		5,666		3,317			—			3,745			3,086			—
Residential real estate		18,645		16,983		—		20,152		18,305		—		20,312		18,379			—			20,821			18,982			—
Home equity		5,247		4,608		—		4,589		4,011		—		5,978		5,143			—			5,833			5,169			—
Consumer		804		688		—		884		744		—		875		713			—			1,084			952			—

Total impaired loans without a specific allowance		52,131		37,920		—		41,119		35,148		—		48,352		38,441			—			50,124			41,291			—

With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—		—		—		—		—			—			—			—			—
Improved property		5,156		5,156		897		3,012		3,012		470		—		—			—			2,105			2,105			388
Commercial and industrial		—		—		—		4,875		1,270		407		—		—			—			—			—			—

Total impaired loans with a specific allowance		5,156		5,156		897		7,887		4,282		877		—		—			—			2,105			2,105			388

Total impaired loans	$	57,287	$	43,076	$	897	$	49,006	$	39,430	$	877	$	48,352	$	38,441		$	—		$	52,229		$	43,396		$	388


																	Impaired Loans
																	For the Three Months Ended														For the Six Months Ended
	Impaired Loans																June 30, 2018						June 30, 2017								June 30, 2018								June 30, 2017
	For the Three Months Ended								For the Six Months Ended								Average Recorded Investment		Interest Income Recognized				Average Recorded Investment				Interest Income Recognized				Average Recorded Investment				Interest Income Recognized				Average Recorded Investment				Interest Income Recognized
	June 30, 2017				June 30, 2016				June 30, 2017				June 30, 2016
*(unaudited, in thousands)*	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	411	$	—	$	840	$	8	$	529	$	—	$	1,223	$	14	$	400			$	—			$	411			$	—			$	346			$	—			$	529			$	—
Improved Property		11,118		23		9,846		96		10,125		369		10,084		180		10,604				23				11,118				23				11,357				368				10,125				369
Commercial and industrial		4,268		2		3,303		52		3,905		4		3,362		93		3,036		2				4,268				2				3,008				4				3,905				4
Residential real estate		17,787		66		16,830		194		17,959		135		16,783		433		18,264		61				17,787				66				18,434				127				17,959				135
Home equity		4,485		5		3,428		28		4,327		10		3,296		52		5,068		6				4,485				5				5,098				11				4,327				10
Consumer		733		1		853		17		737		3		1,000		35		758		2				733				1				823				5				737				3

Total impaired loans without a specific allowance		38,802		97		35,100		395		37,582		521		35,748		807		38,130		94				38,802				97				39,066				515				37,582				521

With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—		—		—		—		—		—		—				—				—				—				—				—				—
Improved Property		5,999		—		3,012		—		5,003		—		3,012		—		1,052		—				5,999				—				1,403				—				5,003				—
Commercial and industrial		—		—		4,312		26		423		—		4,498		58		—		—				—				—				—				—				423				—

Total impaired loans with a specific allowance		5,999		—		7,324		26		5,426		—		7,510		58		1,052		—				5,999				—				1,403				—				5,426				—

Total impaired loans	$	44,801	$	97	$	42,424	$	421	$	43,008	$	521	$	43,258	$	865	$	39,182	$	94			$	44,801			$	97			$	40,469			$	515			$	43,008			$	521

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


	Non-accrual Loans⁽¹⁾				Non-accrual Loans⁽¹⁾
*(unaudited, in thousands)*	June 30, 2017		December 31, 2016		June 30, 2018		December 31, 2017
Commercial real estate:
Land and construction	$	413	$	766	$	—	$	239
Improved property		14,859		9,535		9,479		13,318

Total commercial real estate		15,272		10,301		9,479		13,557

Commercial and industrial		3,955		4,299		3,191		2,958
Residential real estate		12,225		12,994		13,951		14,661
Home equity		4,171		3,538		4,726		4,762
Consumer		612		652		634		887

Total	$	36,235	$	31,784	$	31,981	$	36,825


	TDRs												TDRs
	June 30, 2017						December 31, 2016						June 30, 2018						December 31, 2017
*(unaudited, in thousands)*	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Commercial real estate:
Land and construction	$	—	$	6	$	6	$	—	$	8	$	8	$	—	$	—	$	—	$	—	$	3	$	3
Improved property		1,433		528		1,961		1,618		688		2,306		1,410		617		2,027		1,650		428		2,078

Total commercial real estate		1,433		534		1,967		1,618		696		2,314		1,410		617		2,027		1,650		431		2,081

Commercial and industrial		137		237		374		152		151		303		126		91		217		128		97		225
Residential real estate		4,758		1,902		6,660		5,311		2,212		7,523		4,428		1,516		5,944		4,321		1,880		6,201
Home equity		437		337		774		473		297		770		417		224		641		407		337		744
Consumer		76		148		224		92		190		282		79		66		145		65		120		185

Total	$	6,841	$	3,158	$	9,999	$	7,646	$	3,546	$	11,192	$	6,460	$	2,514	$	8,974	$	6,571	$	2,865	$	9,436

As of June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, there were no TDRs greater than $1.0 million. The concessions granted in the majority of loans reported as accruing andnon-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 three ~~and six~~ months. WesBanco had no unfunded commitments to debtors whose loans were classified as impaired of $0.3 million and $0.1 million as of June 30, ~~2017 or~~2018 and December 31, ~~2016.~~2017, respectively.

The following tables present details related to loans identified as TDRs during the three and six months ended June 30, ~~2017~~2018 and ~~2016,~~2017, respectively:


													New TDRs (1) For the Three Months Ended
													June 30, 2018						June 30, 2017
															Pre-		Post-				Pre-		Post-
															Modification		Modification				Modification		Modification
	New TDRs⁽¹⁾ For the Three Months Ended														Outstanding		Outstanding				Outstanding		Outstanding
	June 30, 2017						June 30, 2016						Number of		Recorded		Recorded		Number of		Recorded		Recorded
*(unaudited, dollars in thousands)*	Number of Modifications		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Modifications		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Modification		Investment		Investment		Modifications		Investment		Investment
Commercial real estate:
Land and construction		—	$	—	$	—		—	$	—	$	—		—	$	—	$	—		—	$	—	$	—
Improved Property		—		—		—		—		—		—		—		—		—		—		—		—

Total commercial real estate		—		—		—		—		—		—		—		—		—		—		—		—

Commercial and industrial		—		—		—		—		—		—		1		9		9		—		—		—
Residential real estate		1		11		10		1		23		22		—		—		—		1		11		10
Home equity		1		44		44		1		43		42		1		20		20		1		44		44
Consumer		2		22		20		6		38		34		2		39		36		2		22		20

Total		4	$	77	$	74		8	$	104	$	98		4	$	68	$	65		4	$	77	$	74


														New TDRs (1)
														For the Six Months Ended
														June 30, 2018						June 30, 2017
													��			Pre-		Post-				Pre-		Post-
	New TDRs⁽¹⁾															Modification		Modification				Modification		Modification
	For the Six Months Ended															Outstanding		Outstanding				Outstanding		Outstanding
	June 30, 2017						June 30, 2016							Number of		Recorded		Recorded		Number of		Recorded		Recorded
*(unaudited, dollars in thousands)*	Number of Modifications		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Modifications		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment			Modifications		Investment		Investment		Modifications		Investment		Investment
Commercial real estate:													Commercial real estate:
Land and construction		—	$	—	$	—		—	$	—	$	—			—	$	—	$	—		—	$	—	$	—
Improved Property		—		—		—		—		—		—			—		—		—		—		—		—

Total commercial real estate		—		—		—		—		—		—			—		—		—		—		—		—

Commercial and industrial		2		125		120		—		—		—			1		10		9		2		125		120
Residential real estate		2		22		18		1		23		22			5		203		185		2		22		18
Home equity		1		45		44		1		44		42			1		20		20		1		45		44
Consumer		3		34		29		6		41		34			4		45		38		3		34		29

Total		8	$	226	$	211		8	$	108	$	98			11	$	278	$	252		8	$	226	$	211

The following table summarizes TDRs which defaulted (defined as past due 90 days) during the six months ended June 30, ~~2017~~2018 and ~~2016,~~2017, respectively, that were restructured within the last twelve months prior to June, ~~30,~~2018 and 2017, ~~and 2016,~~ respectively:


	Defaulted TDRs⁽¹⁾								Defaulted TDRs⁽¹⁾
	For the Six Months Ended								For the Six Months Ended
	June 30, 2017				June 30, 2016				June 30, 2018				June 30, 2017
*(unaudited, dollars in thousands)*	Number of Defaults		Recorded Investment		Number of Defaults		Recorded Investment		Number of Defaults		Recorded Investment		Number of Defaults		Recorded Investment
Commercial real estate:
Land and construction		—	$	—		—	$	—		—	$	—		—	$	—
Improved property		—		—		—		—		1		145		—		—

Total commercial real estate		—		—		—		—		1		145		—		—

Commercial and industrial		—		—		1		40		—		—		—		—
Residential real estate		—		—		—		—		1		121		—		—
Home equity		—		—		—		—		1		7		—		—
Consumer		—		—		—		—		—		—		—		—

Total		—	$	—		1	$	40		3	$	273		—	$	—

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

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


*(unaudited, in thousands)*	June 30, 2017		December 31, 2016		June 30, 2018		December 31, 2017
Other real estate owned	$	6,654	$	8,206	$	4,334	$	5,195
Repossessed assets		69		140		50		102

Total other real estate owned and repossessed assets	$	6,723	$	8,346	$	4,384	$	5,297

~~At June 30, 2017, other real estate owned includes $2.0 million from the YCB acquisition and $3.1 million at December 31, 2016.~~ Residential real estate included in other real estate owned at June 30, ~~2017~~2018 and December 31, ~~2016~~2017 was ~~$1.7~~$0.8 million and ~~$1.6~~$1.5 million, respectively. At June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, formal foreclosure proceedings were in process on residential real estate loans totaling ~~$2.3~~$5.7 million and ~~$4.1~~$3.5 million, respectively.

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 the Bank’s assets and liabilities are equally distributed but also have similar maturities.

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 June 30, 2018 and December 31, 2017, WesBanco had 42 and 39, respectively, interest rate swaps with an aggregate notional amount of $305.6 million and $298.2 million, respectively, related to this program. During the six months ended June 30, 2018 and 2017, WesBanco recognized net gains (net losses) of $0.2 million and $(0.3) million, respectively, related to the changes in fair value of these swaps. Additionally, WesBanco recognized $0.5 million and $1.1 million of income for the related swap fees for the six months ended June 30, 2018 and 2017, respectively.

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 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 TBA contracts to manage the interest rate risk between the loan commitment and the closing of the loan. The loans sold on a best efforts basis are committed to an investor simultaneous to the interest rate commitment with the borrower.

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 qualifying hedging relationships 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 June 30, 2018 and December 31, 2017:

The table below presents the change in the fair value of the Company’s derivative financial instruments reflected within the othernon-interest income line item of the consolidated income statement for the three and six months ended June 30, 2018 and 2017, respectively.


		For the Three Months Ended						For the Six Months Ended
	Location of Gain/(Loss)	June 30,						June 30,
*(unaudited, in thousands)*	Location of Gain/(Loss)	2018			2017			2018		2017
Interest rate swaps	Other income	$	44		$	(108	)	$	211	$	(303	)
Interest rate loan commitments	Mortgage banking income		7			—			143		123
Forward TBA contracts	Mortgage banking income		(11	)		—			399		—

Total		$	40		$	(108	)	$	753	$	(180	)

WesBanco has agreements with its derivative counterparties that contain a provision where 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 has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral with a market value of $2.3 million as of June 30, 2018. If WesBanco had breached any of these provisions at June 30, 2018, 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.

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						For the Six Months Ended
	For the Three Months Ended June 30,						For the Six Months Ended June 30,						June 30,						June 30,
*(unaudited, in thousands)*	2017			2016			2017			2016			2018			2017			2018			2017
Service cost – benefits earned during year	$	643		$	696		$	1,279		$	1,392		$	707		$	643		$	1,406		$	1,279
Interest cost on projected benefit obligation		1,096			1,209			2,180			2,533			1,228			1,096			2,442			2,180
Expected return on plan assets		(1,907	)		(1,919	)		(3,793	)		(3,838	)		(2,390	)		(1,907	)		(4,753	)		(3,793	)
Amortization of prior service cost		6			6			12			12			7			6			13			12
Amortization of net loss		803			808			1,597			1,502			758			803			1,508			1,597

Net periodic pension cost	$	641		$	800		$	1,275		$	1,601		$	310		$	641		$	616		$	1,275

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 ~~$2.7~~$5.1 million is due for ~~2017,~~2018, which could be all or partially offset by the Plan’s ~~$46.9~~$56.9 million available credit balance. AWesBanco made a voluntary contribution of $2.5 million ~~was made~~to the Plan in June ~~2017.~~2018.

~~On September 9, 2016,~~ WesBanco assumed YCB’s obligation for a predecessor bank’s participation in the Pentegra Defined Benefit Plan for Financial Institutions (“Pentegra Plan”). The participating employer plan ~~had~~has been frozen to new participants since 2002. WesBanco spun ~~out~~off the assets from the Pentegra Plan, ~~in the second quarter of 2017, and contributed~~contributing approximately $2.8 million to satisfy the estimated final costs to do so. ~~The~~This spin off had no impact on earnings as the liability was included in YCB’s balance sheet as of the acquisition date. The ~~$8.4 million in~~ distributed assets from the Pentegra Plan were transferred to a ~~new~~ plan providing substantially the same benefits to the participants. The net periodic pension income for this plan for the three and six months ended June 30, 2018 was $62 thousand and $0.1 million, respectively, which was comprised of a $0.2 million and a $0.3 million expected return on plan assets and a $3 thousand and a $6 thousand recognized net actuarial gain partially offset by a $0.1 million and a $0.2 million interest cost on projected benefit obligation for the three and six months ended June 30, 2018, respectively.

No minimum contribution is due for this plan for fiscal year 2018; however, WesBanco made a voluntary contribution of $0.2 million to this plan in June 2018.

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. Certain equity securities that are lightly traded in over-the-counter markets are classified as level 2 in the fair value hierarchy, as quoted market prices may not be available on the fair value measurement date. 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.

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 ~~simultaneously~~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~~market-based inputs, including interest rate curves and implied volatilities. WesBanco incorporates credit valuation adjustments to appropriately reflect both its ownnon-performance risk and the respective counterparty’snon-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.

Impaired loans: Impaired loans are carried at the lower of cost or the fair value of the collateral for collateral-dependent loans. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The use of independent appraisals, discounted cash flow models and management’s best judgment are significant inputs in arriving at the fair value measure of the underlying collateral and impaired loans are therefore classified within level 3 of the fair value hierarchy.

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.

Loans held for sale: Loans held for sale are carried, in aggregate, at fair value as WesBanco has elected the ~~lower~~fair value option as of ~~cost or fair value.~~October 1, 2017. 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.

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. 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 June 30, ~~2017~~2018 and December 31, ~~2016:~~2017:


				June 30, 2017															June 30, 2018
				Fair Value Measurements Using:															Fair Value Measurements Using:
	June 30, 2017			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs			Investments Measured at Net Asset			June 30, 2018			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs			Investments Measured at Net Asset
*(unaudited, in thousands)*			(level 1)			(level 2)			(level 3)			Value				June 30, 2018		(level 1)			(level 2)			(level 3)			Value
Recurring fair value measurements	June 30, 2017
Trading securities	$	7,880		$	6,483		$	—		$	—		$	1,397
Securities - available-for-sale
Equity securities																$	13,494		$	13,494		$	—		$	—		$	—
Debt securities -available-for-sale															Debt securities -available-for-sale
U.S. Treasury																	9,913			—			9,913			—			—
U.S. Government sponsored entities and agencies		43,836			—			43,836			—			—			100,682			—			100,682			—			—
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		926,759			—			926,759			—			—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies																	1,373,417			—			1,373,417			—			—
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		115,522			—			115,522			—			—			140,647			—			140,647			—			—
Obligations of state and political subdivisions		112,675			—			112,675			—			—			126,799			—			126,799			—			—
Corporate debt securities		35,339			—			35,339			—			—			45,113			—			45,113			—			—
Equity securities		5,289			3,149			2,140			—			—

Total securities - available-for-sale	$	1,239,420		$	3,149		$	1,236,271		$	—		$	—

Total debt securities -available-for-sale																$	1,796,571		$	—		$	1,796,571		$	—		$	—
Loans held for sale																	12,053			—			12,053			—			—
Other assets - interest rate derivatives agreements	$	5,666		$	—		$	5,666		$	—		$	—			11,048			—			11,048			—			—

Total assets recurring fair value measurements	$	1,252,966		$	9,632		$	1,241,937		$	—		$	1,397		$	1,833,166		$	13,494		$	1,819,672		$	—		$	—


Other liabilities - interest rate derivatives agreements	$	5,572		$	—		$	5,572		$	—		$	—		$	10,832		$	—		$	10,832		$	—		$	—

Total liabilities recurring fair value measurements	$	5,572		$	—		$	5,572		$	—		$	—		$	10,832		$	—		$	10,832		$	—		$	—


Nonrecurring fair value measurements															Nonrecurring fair value measurements
Impaired loans	$	4,259		$	—		$	—		$	4,259		$	—		$	—		$	—		$	—		$	—		$	—
Other real estate owned and repossessed assets		6,723			—			—			6,723			—			4,384			—			—			4,384			—
Loans held for sale		21,677			—			21,677			—			—

Total nonrecurring fair value measurements	$	32,659		$	—		$	21,677		$	10,982		$	—		$	4,384		$	—		$	—		$	4,384		$	—


				December 31, 2016															December 31, 2017
				Fair Value Measurements Using:															Fair Value Measurements Using:
	December 31, 2016			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs			Investments Measured at Net Asset			December 31,			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs			Investments Measured at Net Asset
*(unaudited, in thousands)*			(level 1)			(level 2)			(level 3)			Value			2017			(level 1)			(level 2)			(level 3)			Value
Recurring fair value measurements	December 31, 2016
Trading securities	$	7,071		$	5,633		$	—		$	—		$	1,438
Securities - available-for-sale
Equity securities																$	13,457		$	11,391		$	—		$	—		$	2,066
Debt securities -available-for-sale
U.S. Government sponsored entities and agencies		54,043			—			54,043			—			—			71,843			—			71,843			—			—
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		938,289			—			938,289			—			—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies																	934,922			—			934,922			—			—
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		96,810			—			96,810			—			—			114,867			—			114,867			—			—
Obligations of state and political subdivisions		111,663			—			111,663			—			—			104,830			—			104,830			—			—
Corporate debt securities		35,301			—			35,301			—			—			35,403			—			35,403			—			—
Equity securities		5,070			2,938			2,132			—			—

Total securities - available-for-sale	$	1,241,176		$	2,938		$	1,238,238		$	—		$	—

Total debt securities -available-for-sale																$	1,261,865		$	—		$	1,261,865		$	—		$	—
Loans held for sale																	20,320			—			20,320			—			—
Other assets - interest rate derivatives agreements	$	5,596		$	—		$	5,596		$	—		$	—			7,351			—			7,351			—			—

Total assets recurring fair value measurements	$	1,253,843		$	8,571		$	1,243,834		$	—		$	1,438		$	1,302,993		$	11,391		$	1,289,536		$	—		$	2,066


Other liabilities - interest rate derivatives agreements	$	5,199		$	—		$	5,199		$	—		$	—		$	7,345		$	—		$	7,345		$	—		$	—

Total liabilities recurring fair value measurements	$	5,199		$	—		$	5,199		$	—		$	—		$	7,345		$	—		$	7,345		$	—		$	—


Nonrecurring fair value measurements															Nonrecurring fair value measurements
Impaired loans	$	3,405		$	—		$	—		$	3,405		$	—		$	1,717		$	—		$	—		$	1,717		$	—
Other real estate owned and repossessed assets		8,346			—			—			8,346			—			5,297			—			—			5,297			—
Loans held for sale		17,315			—			17,315			—			—

Total nonrecurring fair value measurements	$	29,066		$	—		$	17,315		$	11,751		$	—		$	7,014		$	—		$	—		$	7,014		$	—

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 no significant transfers between level 1, 2 or 3 for the three and six months ended June 30, ~~2017~~2018 or for the year ended December 31, ~~2016.~~2017.

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:

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


					Fair Value Measurements at June 30, 2017												Fair Value Measurements at June 30, 2018
*(unaudited, in thousands)*	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)		Investments Measured at Net Asset Value		Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)		Investments Measured at Net Asset Value
Financial Assets
Cash and due from banks	$	110,695	$	110,695	$	110,695	$	—	$	—	$	—	$	155,559	$	155,559	$	155,559	$	—	$	—	$	—
Trading securities		7,880		7,880		6,483		—		—		1,397
Securities available-for-sale		1,239,420		1,239,420		3,149		1,236,271		—		—
Securities held-to-maturity		1,030,394		1,049,374		—		1,048,782		592		—
Equity securities														13,494		13,494		13,494		—		—		—
Debt securitiesavailable-for-sale														1,796,571		1,796,571		—		1,796,571		—		—
Debt securitiesheld-to-maturity														1,019,746		1,016,111		—		1,015,540		571		—
Net loans		6,345,508		6,239,814		—		—		6,239,814		—		6,745,261		6,647,280		—		—		6,647,280		—
Loans held for sale		21,677		21,677		—		21,677		—		—		12,053		12,053		—		12,053		—		—
Other assets - interest rate derivatives		5,666		5,666		—		5,666		—		—		11,048		11,048		—		11,048		—		—
Accrued interest receivable		28,501		28,501		28,501		—		—		—		33,868		33,868		33,868		—		—		—
Financial Liabilities
Deposits		7,072,473		7,083,413		5,686,701		1,396,712		—		—		7,668,604		7,678,825		6,292,076		1,386,749		—		—
Federal Home Loan Bank borrowings		1,021,592		1,020,403		—		1,020,403		—		—		1,248,406		1,240,239		—		1,240,239		—		—
Other borrowings		167,671		167,663		165,565		2,098		—		—		258,067		258,057		256,069		1,988		—		—
Subordinated debt and junior subordinated debt		164,228		134,420		—		134,420		—		—		165,420		153,405		—		153,405		—		—
Other liabilities - interest rate derivatives		5,572		5,572		—		5,572		—		—		10,832		10,832		—		10,832		—		—
Accrued interest payable		2,407		2,407		2,407		—		—		—		4,417		4,417		4,417		—		—		—


					Fair Value Measurements at December 31, 2016												Fair Value Measurements at December 31, 2017
*(unaudited, in thousands)*	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)		Investments Measured at Net Asset Value		Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)		Investments Measured at Net Asset Value
Financial Assets
Cash and due from banks	$	128,170	$	128,170	$	128,170	$	—	$	—	$	—	$	117,572	$	117,572	$	117,572	$	—	$	—	$	—
Trading securities		7,071		7,071		5,633		—		—		1,438
Securities available-for-sale		1,241,176		1,241,176		2,938		1,238,238		—		—
Securities held-to-maturity		1,067,967		1,076,790		—		1,076,189		601		—
Equity securities														13,457		13,457		11,391		—		—		2,066
Debt securitiesavailable-for-sale														1,261,865		1,261,865		—		1,261,865		—		—
Debt securitiesheld-to-maturity														1,009,500		1,023,784		—		1,023,191		593		—
Net loans		6,205,762		6,073,558		—		—		6,073,558		—		6,296,157		6,212,823		—		—		6,212,823		—
Loans held for sale		17,315		17,315		—		17,315		—		—		20,320		20,320		—		20,320		—		—
Other assets - interest rate derivatives		5,596		5,596		—		5,596		—		—		7,351		7,351		—		7,351		—		—
Accrued interest receivable		28,299		28,299		28,299		—		—		—		29,728		29,728		29,728		—		—		—
Financial Liabilities
Deposits		7,040,879		7,052,501		5,545,057		1,507,444		—		—		7,043,588		7,053,536		5,766,531		1,287,005		—		—
Federal Home Loan Bank borrowings		968,946		974,430		—		974,430		—		—		948,203		944,706		—		944,706		—		—
Other borrowings		199,376		199,385		197,164		2,221		—		—		184,805		184,814		182,785		2,029		—		—
Subordinated debt and junior subordinated debt		163,598		134,859		—		134,859		—		—		164,327		146,484		—		146,484		—		—
Other liabilities - interest rate derivatives		5,199		5,199		—		5,199		—		—		7,345		7,345		—		7,345		—		—
Accrued interest payable		2,204		2,204		2,204		—		—		—		3,178		3,178		3,178		—		—		—

The following methods and assumptions were used to measure the fair value of financial instruments recorded at cost on WesBanco’s consolidated balance sheets:

Cash and due from banks:The carrying amount for cash and due from banks is a reasonable estimate of fair value.

~~Securities~~ Debt securitiesheld-to-maturity:Fair values for debt securitiesheld-to-maturity are determined in the same manner as the investment securities which are described above.

Net loans: Fair values for loans are estimated using a discounted cash flow methodology. The discount rates take into account interest rates currently being offered to customers for loans with similar terms, the credit risk associated with the loan and other market factors, including liquidity.

WesBanco believes the discount rates are consistent with transactions occurring in the marketplace for both performing and distressed loan types. The carrying value is net of the allowance for loan losses and other associated premiums and discounts. Due to the significant judgment involved in evaluating credit quality, loans are classified within level 3 of the fair value hierarchy.

Accrued interest receivable:The carrying amount of accrued interest receivable approximates its fair ~~value.~~value.

Deposits:The carrying amount is considered a reasonable estimate of fair value for demand, savings and other variable rate deposit accounts. The fair value of fixed maturity certificates of deposit is estimated by a discounted cash flow method using rates currently offered for deposits of similar remaining maturities.

Federal Home Loan Bank borrowings:The fair value of FHLB borrowings is based on rates currently available to WesBanco for borrowings with similar terms and remaining maturities.

Other borrowings:The carrying amount of federal funds purchased and overnight sweep accounts generally approximate fair value. Other repurchase agreements are based on quoted market prices if available. If market prices are not available, for certain fixed and adjustable rate repurchase agreements, then quoted market prices of similar instruments are used.

Subordinated debt and junior subordinated debt:The fair value of subordinated debt is estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements. Due to the pooled nature of junior subordinated debt owed to unconsolidated subsidiary trusts, which are not actively traded, estimated fair value is based on recent similar transactions of single-issuer trust preferred securities.

Accrued interest payable:The carrying amount of accrued interest payable approximates its fair value.

Off-balance sheet financial instruments:Off-balance sheet financial instruments consist of commitments to extend credit, including letters of credit. Fair values for commitments to extend credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present credit standing of the counterparties. The estimated fair value of the commitments to extend credit and letters of credit are insignificant and therefore are not presented in the above tables.

WesBanco adopted ASU2014-09 as of January 1, 2018 under the modified retrospective approach and there was no material impact on WesBanco’s Consolidated Financial statements. Interest income, net securities (losses) gains and bank-owned life insurance are not in scope of ASC 606. For the revenue streams in scope of ASC 606, including trust fees, service charges on deposits, electronic banking fees, net securities brokerage revenue, mortgage banking income and net gain or loss on sale of other real estate owned, there are no significant judgements related to the amount and timing of revenue recognition.

Trust fees: Fees are earned over a period of time between monthly and annually, per the related fee schedule. The fees are earned ratably over the period for investment, safekeeping and other services performed by WesBanco. The fees are accrued when earned based on the daily asset value on the last day of the quarter. In most cases, the fees are directly debited from the customer account.

Service charges on deposits: There are monthly service charges for both commercial and personal banking customers, which are earned over the month per the related fee schedule based on the customers’ deposits. There are also transaction-based fees, which are earned based on specific transactions or customer activity within the customers’ deposit accounts. These are earned at the time the transaction or customer activity occurs. The fees are debited from the customer account.

Electronic banking fees: Interchange and ATM fees are earned based on customer and ATM transactions. Revenue is recognized when the transaction is settled.

Net securities brokerage revenue: Commission income is earned based on customer transactions and management of investments. The commission income from customers’ transactions is recognized when the transaction is complete. The commission income from the management of investments is earned continuously over a quarterly period.

Mortgage banking income: Income is earned when WesBanco-originated loans are sold to an investor on the secondary market. The investor bids on the loans. If the price is accepted, WesBanco delivers the loan documents to the investor. Once received and approved by the investor, revenue is recognized and the loans are derecognized from the Consolidated Balance Sheet. Prior to the loans being sold, they are classified as loans held for sale. Additionally, the changes in the fair value of the loans held for sale, loan commitments and related derivatives are included in mortgage banking income.

Net gain or loss on sale of other real estate owned: Net gain or loss is recorded when other real estate is sold to a third party and the Bank collects substantially all of the consideration to which WesBanco is entitled in exchange for the transfer of the property.

The following table summarizes the point of revenue recognition and the income recognized for each of the revenue streams for the three and six months ended June 30, 2018:

The activity in accumulated other comprehensive income for the three and six months ended June 30, ~~2017~~2018 and ~~2016~~2017 is as follows:


	Accumulated Other Comprehensive Income/(Loss)⁽¹⁾												Accumulated Other Comprehensive Income/(Loss)⁽¹⁾
*(unaudited, in thousands)*	Defined Benefit Pension Plan			Unrealized Gains (Losses) on Securities Available-for-Sale			Unrealized Gains on Securities Transferred from Available-for-Sale to Held-to-Maturity			Total			Defined Benefit Pension Plan			Unrealized Gains (Losses) on Debt Securities Available-for-Sale			Unrealized Gains on Debt Securities Transferred from Available-for-Sale to Held-to-Maturity			Total
Balance at December 31, 2017													$	(18,626	)	$	(13,250	)	$	381		$	(31,495	)

Other comprehensive income before reclassifications														—			(21,720	)		—			(21,720	)
Amounts reclassified from accumulated other comprehensive income														1,026			—			(100	)		926

Period change														1,026			(21,720	)		(100	)		(20,794	)
Adoption of Accounting Standard ASU2016-01⁽²⁾														—			(1,063	)		—			(1,063	)

Balance at June 30, 2018													$	(17,600	)	$	(36,033	)	$	281		$	(53,352	)


Balance at December 31, 2016	$	(17,758	)	$	(9,890	)	$	522		$	(27,126	)	$	(17,758	)	$	(9,890	)	$	522		$	(27,126	)

Other comprehensive income before reclassifications		—			3,932			—			3,932			—			3,932			—			3,932
Amounts reclassified from accumulated other comprehensive income		1,164			35			(123	)		1,076			1,164			35			(123	)		1,076

Period change		1,164			3,967			(123	)		5,008			1,164			3,967			(123	)		5,008

Balance at June 30, 2017	$	(16,594	)	$	(5,923	)	$	399		$	(22,118	)	$	(16,594	)	$	(5,923	)	$	399		$	(22,118	)


Balance at December 31, 2015	$	(17,539	)	$	(4,162	)	$	747		$	(20,954	)

Other comprehensive income before reclassifications		—			18,100			—			18,100
Amounts reclassified from accumulated other comprehensive income		921			(1,061	)		(103	)		(243	)

Period change		921			17,039			(103	)		17,857

Balance at June 30, 2016	$	(16,618	)	$	12,877		$	644		$	(3,097	)

The following table provides details about amounts reclassified from accumulated other comprehensive income for the three and six months ended June 30, 2018 and 2017, ~~and 2016:~~respectively:


Details about Accumulated Other Comprehensive Income Components	For the Three Months Ended June 30,						For the Six Months Ended June 30,						Affected Line Item in the Statement of Net Income	For the Three Months Ended June 30,						For the Six Months Ended June 30,						Affected Line Item in the Statement of Net Income
*(unaudited, in thousands)*	2017			2016			2017			2016				2018			2017			2018			2017
Securities available-for-sale⁽¹⁾:
Net securities gains/losses reclassified into earnings	$	55		$	(618	)	$	55		$	(1,672	)	Net securities gains (Non-interest income)	$	—		$	55		$	—		$	55		Net securities gains(Non-interest income)
Related income tax benefit		(20	)		226			(20	)		611		Provision for income taxes		—			(20	)		—			(20	)	Provision for income taxes

Net effect on accumulated other comprehensive income for the period		35			(392	)		35			(1,061	)			—			35			—			35

Securities held-to-maturity⁽¹⁾:
Amortization of unrealized gain transferred from available-for-sale		(118	)		(84	)		(189	)		(165	)	Interest and dividends on securities (Interest and dividend income)		(66	)		(118	)		(131	)		(189	)	Interest and dividends on securities (Interest and dividend income)
Related income tax expense		44			31			66			62		Provision for income taxes		15			44			31			66		Provision for income taxes

Net effect on accumulated other comprehensive income for the period		(74	)		(53	)		(123	)		(103	)			(51	)		(74	)		(100	)		(123	)

Defined benefit pension plan⁽²⁾:
Amortization of net loss and prior service costs		809			815			1,610			1,514		Employee benefits (Non-interest expense)		764			809			1,520			1,610		Employee benefits(Non-interest expense)
Related income tax benefit		(300	)		(298	)		(446	)		(593	)	Provision for income taxes		(175	)		(300	)		(494	)		(446	)	Provision for income taxes

Net effect on accumulated other comprehensive income for the period		509			517			1,164			921				589			509			1,026			1,164

Total reclassifications for the period	$	470		$	72		$	1,076		$	(243	)		$	538		$	470		$	926		$	1,076

Commitments —In the normal course of business, WesBanco offersoff-balance sheet credit arrangements to enable its customers to meet their financing objectives. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. WesBanco’s exposure to credit losses in the event ofnon-performance by the other parties to the financial instruments for commitments to extend credit and standby letters of credit is limited to the contractual amount of those instruments. WesBanco uses the same credit policies in making commitments and conditional obligations as for all other lending. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The allowance for credit losses associated with commitments was $0.6 million as of ~~both~~ June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, and is included in other liabilities on the Consolidated Balance Sheets.

Letters of credit are conditional commitments issued by banks to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including normal business activities, bond financing and similar transactions. Letters of credit are considered guarantees. The liability associated with letters of credit was $0.2 million as of both June 30, ~~2017~~2018 and December 31, ~~2016.~~2017.

Contingent obligations ~~to purchase loans funded by~~and other ~~entities~~guarantees include affordable housing plan guarantees, credit card guarantees and ~~mortgages sold into~~obligations under the ~~secondary market with recourse.~~FHLB’s loan purchasing program. Affordable housing plan guarantees are performance guarantees for various building project loans. The guarantee amortizes as the loan balances decrease. Credit card guarantees are credit card balances not owned by WesBanco, whereby the Bank guarantees the performance of the cardholder. The mortgages sold to FHLB obligate WesBanco to reimburse the FHLB for a portion of any loan balances that default.

The following table presents total commitments to extend credit, guarantees and various letters of credit outstanding:


	June 30,		December 31,		June 30,		December 31,
*(unaudited, in thousands)*	2017		2016		2018		2017
Lines of credit	$	1,483,500	$	1,418,329	$	1,571,547	$	1,452,697
Loans approved but not closed		228,118		185,253		354,696		245,644
Overdraft limits		126,459		126,517		126,101		126,671
Letters of credit		31,260		32,907		38,716		31,951
Contingent obligations to purchase loans funded by other entities		8,945		13,036
Contingent obligations and other guarantees						5,818		6,700

Contingent Liabilities —WesBanco is a party to various legal and administrative proceedings and claims. While any litigation contains an element of uncertainty, management does not believe that a material loss related to such proceedings or claims pending or known to be threatened is reasonably possible.

WesBanco operates two reportable segments: community banking and trust and investment services. WesBanco’s community banking segment offers services traditionally offered by full-service commercial banks, including commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and certainnon-traditional offerings, such as insurance and securities brokerage services. The trust and investment services segment offers trust services as well as various alternative investment products including mutual funds. The market value of assets managed or held in custody by the trust and investment services segment was approximately ~~$3.8~~$4.0 billion and ~~$3.7~~$3.8 billion at June 30, ~~2017~~2018 and ~~2016,~~2017, respectively. These assets are held by WesBanco in fiduciary or agency capacities for their customers and therefore are not included as assets on WesBanco’s Consolidated Balance Sheets.


			Trust and							Trust and
	Community		Investment					Community		Investment
*(unaudited, in thousands)*	Banking		Services		Consolidated			Banking		Services		Consolidated
For the Three Months ended June 30, 2018:
Interest and dividend income								$	98,888	$	—	$	98,888
Interest expense									16,541		—		16,541

Net interest income									82,347		—		82,347
Provision for credit losses									1,708		—		1,708

Net interest income after provision for credit losses									80,639		—		80,639
Non-interest income									17,656		5,752		23,408
Non-interest expense									60,026		3,517		63,543

Income before provision for income taxes									38,269		2,235		40,504
Provision for income taxes									6,865		470		7,335

Net income								$	31,404	$	1,765	$	33,169

For the Three Months ended June 30, 2017:
Interest and dividend income	$	82,160	$	—	$	82,160		$	82,160	$	—	$	82,160
Interest expense		10,021		—		10,021			10,021		—		10,021

Net interest income		72,139		—		72,139			72,139		—		72,139
Provision for credit losses		2,383		—		2,383			2,383		—		2,383

Net interest income after provision for credit losses		69,756		—		69,756			69,756		—		69,756
Non-interest income		16,550		5,572		22,122			16,550		5,572		22,122
Non-interest expense		52,754		3,130		55,884			52,754		3,130		55,884

Income before provision for income taxes		33,552		2,442		35,994			33,552		2,442		35,994
Provision for income taxes		8,676		977		9,653			8,676		977		9,653

Net income	$	24,876	$	1,465	$	26,341		$	24,876	$	1,465	$	26,341

For the Three Months ended June 30, 2016:
For the Six Months ended June 30, 2018:
Interest and dividend income	$	67,585	$	—	$	67,585		$	185,203	$	—	$	185,203
Interest expense		7,811		—		7,811			29,667		—		29,667

Net interest income		59,774		—		59,774			155,536		—		155,536
Provision for credit losses		1,811		—		1,811			3,876		—		3,876

Net interest income after provision for credit losses		57,963		—		57,963			151,660		—		151,660
Non-interest income		14,555		5,036		19,591			35,236		12,255		47,491
Non-interest expense		44,396		2,964		47,360			110,920	��	7,194		118,114

Income before provision for income taxes		28,122		2,072		30,194			75,976		5,061		81,037
Provision for income taxes		7,256		829		8,085			13,276		1,063		14,339
							��
Net income	$	20,866	$	1,243	$	22,109		$	62,700	$	3,998	$	66,698

For the Six Months ended June 30, 2017:
Interest and dividend income	$	162,084	$	—	$	162,084		$	162,084	$	—	$	162,084
Interest expense		19,226		—		19,226			19,226		—		19,226

Net interest income		142,858		—		142,858			142,858		—		142,858
Provision for credit losses		5,094		—		5,094			5,094		—		5,094

Net interest income after provision for credit losses		137,764		—		137,764			137,764		—		137,764
Non-interest income		33,290		11,716		45,006			33,290		11,716		45,006
Non-interest expense		103,746		6,522		110,268			103,746		6,522		110,268

Income before provision for income taxes		67,308		5,194		72,502			67,308		5,194		72,502
Provision for income taxes		18,196		2,078		20,274			18,196		2,078		20,274

Net income	$	49,112	$	3,116	$	52,228		$	49,112	$	3,116	$	52,228

For the Six Months ended June 30, 2016:
Interest and dividend income	$	135,186	$	—	$	135,186
Interest expense		15,571		—		15,571

Net interest income		119,615		—		119,615
Provision for credit losses		4,135		—		4,135

Net interest income after provision for credit losses		115,480		—		115,480
Non-interest income		28,237		10,747		38,984
Non-interest expense		86,461		6,242		92,703

Income before provision for income taxes		57,256		4,505		61,761
Provision for income taxes		14,977		1,802		16,779

Net income	$	42,279	$	2,703	$	44,982

Totalnon-fiduciary assets of the trust and investment services segment were ~~$1.6~~$1.7 million and ~~$3.2~~$1.6 million at June 30, ~~2017~~2018 and ~~2016,~~2017, respectively. All other assets, including goodwill and other intangible assets, were allocated to the community banking segment.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis (“MD&A”) represents an overview of ~~WesBanco’s~~the results of operations and financial condition as of ~~June 30, 2017, as compared to December 31, 2016, and WesBanco’s results of operations~~WesBanco for the three and six months ended June 30, ~~2017 and 2016.~~2018. This discussion and analysis should be read in conjunction with the Consolidated Financial Statements and Notes ~~in this report and WesBanco’s Form10-K~~ ~~for the fiscal year ended December 31, 2016.~~thereto.

Forward-looking statements in this report relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco’s Form10-K for the year ended December 31, ~~2016~~2017 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”), ~~including WesBanco’s Form10-Q~~ ~~for the quarter ended March 31, 2017,~~ which are available at the SEC’s website, www.sec.gov or at WesBanco’s website, www.wesbanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s most recent Annual Report on Form10-K filed with the SEC under “Risk Factors” in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, that the businesses of WesBanco, FTSB and FFKT may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger of WesBanco, FTSB and FFKT may not be fully realized within the expected timeframes; disruption from the merger of WesBanco, FTSB and FFKT may make it more difficult to maintain relationships with clients, associates, or suppliers; the effects of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the FDIC, the SEC, FINRA, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; internet hacking; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.

WesBanco is a multi-state bank holding company operating through ~~173~~177 branches and ~~161~~167 ATM machines in West Virginia, Ohio, western Pennsylvania, Kentucky, and southern Indiana, offering retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. WesBanco’s businesses are significantly impacted by economic factors such as market interest rates, federal monetary and regulatory policies, local and regional economic conditions and the competitive environment’s effect upon WesBanco’s business volumes. WesBanco’s deposit levels are affected by numerous factors including personal savings rates, personal income, and competitive rates on alternative investments, as well as competition from other financial institutions within the markets we serve and liquidity needs of WesBanco. Loan levels are also subject to various factors including construction demand, business financing needs, consumer spending and interest rates, as well as loan terms offered by competing lenders.

On ~~September 9, 2016,~~April 5, 2018, WesBanco completed ~~the~~its acquisition of ~~YCB,~~FTSB, a bank holding company headquartered in ~~New Albany, Indiana~~Huntington, WV with approximately ~~$1.5 billion~~$706.1 million in assets, excluding goodwill, ~~with $1.2 billion~~$590.0 million in ~~total~~ deposits and ~~$1.0 billion~~$448.3 million in total loans, and 34 branches in Kentucky and southern Indiana. WesBanco now has approximately $9.9 billion in total assets, $7.1 billion in total deposits, and $6.4 billion in total loans, operating in five contiguous states. YCB’sloans. FTSB’s results were included in WesBanco’s results from the date of the merger consummation.

WesBanco’s critical accounting policies involving the significant judgments and assumptions used in the preparation of the Consolidated Financial Statements as of June 30, ~~2017~~2018 have remained unchanged from the disclosures presented in WesBanco’s Annual Report on Form10-K for the year ended December 31, ~~2016~~2017 within the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Net income for the three months ended June 30, ~~2017 increased to $26.3~~2018 was $33.2 million, ~~while~~with diluted earnings per share ~~increased to $0.60,~~of $0.71, compared to ~~$22.1~~$26.3 million ~~or $0.58~~and $0.60 per diluted share, respectively, for the second quarter of ~~2016.~~2017. For the six ~~month period~~months ended June 30, ~~2017,~~2018, net income ~~increased~~was $66.7 million, or $1.47 per diluted share, compared to $52.2 million, or $1.19 per diluted share, ~~compared to $45.0 million or $1.17 per diluted share~~ for the ~~first six months of 2016.~~2017 period. Excludingafter-tax merger-related expenses(non-GAAP measure), net income for the three months ended June 30, 2018, increased 42.2% year-over-year to $37.4 million, or $0.80 per diluted share as compared to $0.60 per diluted share in the prior year quarter; and net income for the six months ended June 30, ~~2017,~~2018 increased ~~15.7%~~35.4% year-over-year to ~~$52.5~~$71.2 million, ~~compared to $45.4 million for 2016, while~~or $1.57 per diluted ~~earnings~~share versus $1.19 per diluted share ~~improved to $1.19, compared to $1.18 per share for 2016.~~in the prior year period.


	For the Three Months Ended June 30,										For the Six Months Ended June 30,											For the Three Months Ended June 30,										For the Six Months Ended June 30,
	2017				2016						2017					2016						2018						2017				2018						2017
(unaudited, dollars in thousands, except per share amounts)	Net Income		Diluted Earnings Per Share		Net Income			Diluted Earnings Per Share			Net Income			Diluted Earnings Per Share		Net Income			Diluted Earnings Per Share			Net Income			Diluted Earnings Per Share			Net Income		Diluted Earnings Per Share		Net Income			Diluted Earnings Per Share			Net Income			Diluted Earnings Per Share
Net income(Non-GAAP)⁽¹⁾	$	26,341	$	0.60	$	22,560		$	0.59		$	52,547		$	1.19	$	45,433		$	1.18		$	37,445		$	0.80		$	26,341	$	0.60	$	71,167		$	1.57		$	52,547		$	1.19
Less: After tax merger-related expenses		—		—		(451	)		(0.01	)		(319	)		—		(451	)		(0.01	)		(4,276	)		(0.09	)		—		—		(4,469	)		(0.10	)		(319	)		—

Net income (GAAP)	$	26,341	$	0.60	$	22,109		$	0.58		$	52,228		$	1.19	$	44,982		$	1.17		$	33,169		$	0.71		$	26,341	$	0.60	$	66,698		$	1.47		$	52,228		$	1.19

Net interest income increased ~~$12.4~~$10.2 million or ~~20.7%,~~14.2% during the second quarter of ~~2017~~2018 as compared to the same quarter of ~~2016,~~2017 due to a ~~23.4%~~12.4% increase in average ~~loan balances~~total earning assets, primarily driven by the acquisition of FTSB and related purchase accounting income. For the ~~increase in net interest margin of 15 basis points.Year-to-date,~~six months ended June 30, 2018, net interest income increased ~~$23.2~~$12.7 million or 19.4%, as average earning assets increased 14.4% and the net interest margin increased 14 basis points to 3.43%. The yield on earning assets has increased in each of the last six quarters totaling 22 basis points, with 18 basis points of the increase occurring subsequent to the acquisition of YCB’s higher yielding earning assets in September 2016. Six basis points of the increase occurred in the most recent quarter after the first quarter’s Federal Reserve Board’s target federal funds rate increased 25 basis points. As a result, the net interest margin increased by 15 basis points to 3.45% in the second quarter of 2017 compared to 3.30% in the second quarter of 2016. Yields increased on more than 90% of earning assets, which more than offset an 8 basis point increase in the cost of interest bearing liabilities as compared to the second quarter of 2016. The increase in the cost of interest bearing liabilities is primarily8.9% due to higher ~~rates for certain short term borrowings~~average total earning assets from a larger investment portfolio and ~~interest bearing demand deposits, which includes public funds. Average interest bearing deposits during~~ the ~~2017 second quarter increased 12.2%, compared to the second quarter of 2016, as all interest bearing deposit types increased other than CDs. In addition,~~earning assets acquired from FTSB. Accretion from prior acquisitions benefited the second quarter net interest margin ~~included~~by approximately 812 basis points, ~~of accretion from prior acquisitions~~as compared to ~~7 basis points in the second quarter of 2016, and~~ 8 basis points in the ~~first quarter of 2017.~~prior year period.

The provision for credit losses ~~increased~~decreased to $1.7 million in the second quarter of 2018, compared to $2.4 million in the second quarter of 2017, ~~compared~~due to ~~$1.8 million~~continued strength in the ~~second quarter of 2016, due primarily to~~loan credit quality and minimal overall loan growth. On a linked-quarter basis, the provision decreased $0.3 million. The provision for credit losses for the first half of 2017 increased to $5.1 million compared to $4.1 million in the first half of 2016. Net charge-offs, as a percentage of average portfolio loans of 0.03% in the second quarter of 2018, were lower than the 0.09% in the second quarter of ~~2017 as compared to 0.08% in the second quarter of 2016.~~2017.

For the second quarter of 2018,non-interest income of $23.4 million increased $1.3 million or 5.8% from the second quarter of 2017, driven by higher electronic banking fees and mortgage banking income. The $0.7 million increase in electronic banking fees was primarily driven by higher volumes and an ATM fee increase. Residential mortgage origination volumes increased 33% year-over-year during the second quarter, which was primarily responsible for the $0.7 million increase in mortgage banking income. For the six months ended June 30, 2018,non-interest income increased $2.5 million or ~~12.9%, compared~~5.5% primarily driven by increased bank-owned life insurance due to higher death benefits received during the first quarter of 2018 and increased electronic banking fees, as noted above.

Total operating expenses continued to be well-controlled in the second quarter. Excluding merger-related expenses,non-interest expense increased $2.2 million or 4.0% for the second quarter of ~~2016. Trust fees~~2018 as compared to second quarter of 2017. This increase is due to higher salaries and wages, which increased $0.5 million or 10.6%, based in part on a 4.1% increase in trust assets, improvements in equity markets during the past year, as well as organic growth, and estate fees. Service charges on deposits increased $0.9 million or 21.7%, and electronic banking fees increased $1.2 million or 33.2%, through a larger customer deposit base from the addition of YCB. Bank-owned life insurance increased $0.4$3.3 million primarily due to ~~life insurance death~~the higher staffing levels from the acquisition of FTSB, normal salary increases and a reclassification of pension service cost from employee benefits recorded in the second quarter of 2017. Other income decreased $0.8 million primarily due to a decrease in commercial customer loan swap fee income, which was related to a larger commercial project in the prior year period. For the six month period ending June 30, 2017,~~non-interest~~ income increased $6.0 million, reflecting similar trends as in the second quarter, while net gains on sale of mortgage loans increased $1.2 million due to increases in mortgage loans sold into the secondary market, as total mortgage loan volume increased by 15.9% to $188.5 million. Net securities gains decreased $1.2 million, primarily due to gains on called securities in 2016.

~~Excluding merger-related expenses in both years as noted in the table above,non-interest~~ ~~expense in the second quarter of 2017 increased $9.2 million or 19.8%, compared to the prior year period, principally~~ due to the acquisition. Salaries and wages increased $3.9 million or 19.7%, due to an 18.7% increase in full-time equivalent employees primarily from the YCB acquisition (net of positions terminated in the fourth quarter upon systems and branch conversions), and annual adjustments to compensation effective during the quarter. Employee benefits expense increased $0.4 million or 5.4%, primarily from higher health insurance costs and payroll taxes associated with the additional employees, which factors were offset somewhat by lower pension expense. Increases in net occupancy and equipment were also primarily related to the additional branches from the YCB acquisition. Marketing expense was seasonally higher during the second quarter, reflecting current consumer advertising campaigns, with the year-over-year increase related mostly to the market expansion from the acquisition. FDIC insurance decreased 17.6%, even with the acquisition, due to a lower fee schedule implemented July 1, 2016 by the FDIC for banks under $10 billion in total asset size as well as certain improved risk factors. Other operating expenses increased $2.1 million or 22.4%, through increases in miscellaneous taxes, professional fees, postage, and communications, primarily due to the YCB acquisition. For the first six months of 2017,~~non-interest~~ expense increased $17.8 million or 19.3%, reflecting similar trends as in the second quarter, while payroll taxes were seasonally higher in the first quarter and marketing expenses were higher in the second quarter due to campaign management expenses. Some additional expected cost savings from the YCB acquisition should continue to be experienced throughout the remainder of 2017, although most personnel-related savings were obtained after the late 2016 branch and system conversions.

~~The provision for income taxes increased $3.5 million or 20.8%, during the first half of 2017 compared to the first half of 2016, due mostly to the first half of 2017pre-tax~~ ~~income increasing 17.4% from the same period in 2016. In addition, the~~ adoption ~~earlier this year~~ of a new accounting standard ~~related~~as of January 1, 2018. Strong discretionary expense management across most other expense categories limited the impact of higher salaries to ~~low~~total expenses. Excluding merger-related expenses for the six months ended June 30, 2018,non-interest expense increased $2.7 million or 2.4% compared to the six months ended June 30, 2017, reflecting the acquisition of FTSB, partially offset by strong expense management.

The effective income ~~housing investment amortization moved $0.8 million from other operating expense to the~~tax rate and associated provision for income taxes for the ~~first six months~~second quarter of ~~2017. For~~2018 are reflective of the recently enacted “Tax Cuts and Jobs Act”, which lowered the statutory Federal income tax rate for corporations to 21%. During the second quarter, the ~~same factors affected the provision, with $0.3 million of recorded low income housing investment amortization, and a lower overall~~ effective tax rate ~~than in~~was 18.1% as compared to 26.8% last year, while the ~~first quarter due~~provision for income taxes decreased $2.3 million to ~~factors such as the forecast of taxable income,~~$7.3 million, despite higher ~~stock-related excess tax benefits and adjustments to certain permanent tax item estimates.~~year-over-yearpre-tax income.


													For the Three Months Ended						For the Six Months Ended
	For the Three Months Ended June 30,						For the Six Months Ended June 30,						June 30,						June 30,
*(unaudited, dollars in thousands)*	2017			2016			2017			2016			2018			2017			2018			2017
Net interest income	$	72,139		$	59,774		$	142,858		$	119,615		$	82,347		$	72,139		$	155,536		$	142,858
Taxable equivalent adjustments to net interest income		2,619			2,445			5,253			4,879			1,344			2,619			2,629			5,253

Net interest income, fully taxable equivalent	$	74,758		$	62,219		$	148,111		$	124,494		$	83,691		$	74,758		$	158,165		$	148,111

Net interest spread,non-taxable equivalent		3.18	%		3.05	%		3.17	%		3.06	%		3.15	%		3.18	%		3.13	%		3.17	%
Benefit of netnon-interest bearing liabilities		0.15	%		0.12	%		0.14	%		0.10	%		0.23	%		0.15	%		0.22	%		0.14	%

Net interest margin		3.33	%		3.17	%		3.31	%		3.16	%		3.38	%		3.33	%		3.35	%		3.31	%
Taxable equivalent adjustment		0.12	%		0.13	%		0.12	%		0.13	%		0.05	%		0.12	%		0.06	%		0.12	%

Net interest margin, fully taxable equivalent		3.45	%		3.30	%		3.43	%		3.29	%		3.43	%		3.45	%		3.41	%		3.43	%

Net interest income, which is WesBanco’s largest source of revenue, is the difference between interest income on earning assets, primarily loans and securities, and interest expense on liabilities (deposits and short and long-term borrowings). Net interest income is affected by the general level of, and changes in interest rates, the steepness and shape of the yield curve, changes in the amount and composition of interest earning assets and interest bearing liabilities, as well as the frequency of repricing of existing assets and liabilities. Net interest income increased ~~$12.4~~$10.2 million or ~~20.7%~~14.2% in the second quarter of ~~2017~~2018 compared to ~~the same quarter of 2016,~~2017, due to a ~~23.4%~~12.4% increase in average ~~loan~~earning asset balances, primarily driven by the acquisition of FTSB and ~~a 15 basis point increase in the net interest margin.~~related purchase accounting income. For the first six months of ~~2017,~~2018, net interest income increased ~~$23.2~~$12.7 million or ~~19.4%~~8.9% for the same reasons along with higher securities balances. Average loan balances increased by 6.6% in the second quarter of 2018 from the ~~first six months~~acquisition of ~~2016~~FTSB compared to the second quarter of 2017, as ~~average earning assets increased 14.4% and the net interest margin increased 14 basis points to 3.43%. Loan balances increased from both the YCB acquisition and from 4.1% of~~ organic loan growth ~~highlighted by 8.7%~~was roughly flat year-over-year from continued targeted reductions in the consumer portfolio to reduce its risk profile and elevated levels of ~~organic~~ commercial ~~loan growth over the last twelve months.~~real estate loans moving to an aggressive secondary financing market. Total average deposits increased in the second quarter of 2018 by ~~$1.0 billion~~$585.3 million or ~~17.2%~~8.2% compared to the second quarter of ~~2016,~~2017, while certificates of deposit, which have the highest overall interest cost among deposits, ~~decreased~~increased by ~~$85.9~~only $11.4 million or ~~5.8%. Total average organic deposits, excluding CDs, increased $200.1 million or 4.4%~~0.8% over the same time period. The effect of multiple increases in the Federal Reserve’s target federal funds rate over the past year on the net interest margin were offset by lower tax equivalent yields ontax-exempt securities resulting from the decrease in the corporate tax rate to 21% for 2018. Due to this adjustment intax-equivalency, the net interest margin decreased to 3.43% for the second quarter of ~~2016, and was driven by 10.2% growth in interest bearing andnon-interest~~ ~~bearing deposits, reflecting customer preferences, and marketing and customer incentive strategies. The net interest margin increased~~2018 compared to 3.45% in the second quarter of ~~2017 from 3.30% in the same quarter of 2016, due to a 20 basis point increase in the yield on earning assets.~~2017. Yields increased ~~on over 90% of~~for all earning ~~assets, more than offsetting an 8 basis point increase~~asset categories in ~~the~~2018 except fortax-exempt securities. The cost of interest bearing liabilities increased by 30 basis points from the second quarter of ~~2016.~~2017 to the second quarter of 2018. The increase in ~~overall funding costs was~~the cost is primarily due to ~~higher rates~~rate increases for ~~certain short term borrowings and~~larger balance customers in interest bearing demand deposits, which include public ~~funds.~~funds, and higher rates for certain medium-term Federal Home Loan Bank borrowings. Approximately 812 basis points of accretion from the FTSB and other prior acquisitions was included in the 2018 second quarter ~~of 2017~~ net interest margin compared to 78 basis points in the 2017 second quarter net interest margin.

Interest income increased $16.7 million or 20.4% in the second quarter of ~~2016,~~2018 and ~~8 basis points for the first quarter.~~

~~Interest income increased $14.6~~$23.1 million or ~~21.6% in the second quarter of 2017 and $26.9 million or 19.9%~~14.3% in the first half of ~~2017~~2018 compared to the same periods ~~in 2016~~of 2017 due to higher ~~average loan balances~~overall earning assets, particularly from the acquisition of FTSB, and higher yields in almost every earning asset category. Earning asset yields were influenced positively in ~~2017 by the 25 basis point first quarter target federal funds rate increase. Average loan balances increased by $1.2 billion in~~ the second quarter of ~~2017~~2018 compared to the second quarter of ~~2016, primarily~~2017 due to three federal funds rate increases occurring during the past twelve months. Average loan balances increased by $419.6 million or 6.6% in the second quarter of 2018 compared to the same period of 2017, due to the acquisition ~~and loan~~of FTSB. Loan yields increased by 1340 basis points during this same ~~period. Loan yields increased~~period to ~~4.24% in the second quarter of 2017 compared to the same quarter in 2016 due to higher loan yields on the acquired YCB loan portfolio and~~4.64% from the previously mentioned federal funds rate ~~increase.~~increases. Loans ~~currently~~ provide the greatest impact on interest income and the yield ~~from~~on earning assets as they have the largest balance and the highest yield within major earning asset categories. In the second quarter of ~~2017,~~2018, average loans represented ~~73.2%~~69.4% of average earning assets, ~~an increase~~a decrease from ~~68.0%~~73.2% in the ~~same~~second quarter of ~~2016.~~2017, primarily due to purchases of taxable securities exceeding average loan growth. Average taxable securities balances increased by $578.3 million or 37.3% from the second quarter of 2017, consistent with management’s strategy of growing total assets above $10 billion, which occurred during the first quarter of 2018 to improve profitability. Total securities yields increased by 138 basis points in 2018 from the second quarter of 2017 due to higher market rates on all securities, but were offset somewhat by a lowertax-equivalency benefit ontax-exempt securities, resulting from the “Tax Cuts and Jobs Act”, which decreased the corporate tax rate from 35% to 21%.Tax-exempt securities yields decreased 74 basis points in the second quarter of 2018 from the second quarter of 2017 from the ~~same period~~lowertax-equivalency benefit; however, this yield decrease had no effect on net interest income, as the tax effect is included in ~~2016 due to lower amortization expense from paydowns on mortgage-backed securities, select sales of short-term, lower yielding investment securities in 2016 and a higher percentage of averagetax-exempt~~ ~~securities to total securities.~~the provision for income taxes. The average balance oftax-exempt securities, which ~~provide~~have the highest ~~yield~~yields within securities, ~~increased 12.8% or $81.8 million over the last year, and were 31.7%~~also decreased to 26.1% of total average securities in 2018 compared to 31.7% in the second quarter of 2017. Taxable securities yields increased by 25 basis points in the second quarter of 2018 as compared to the second quarter of 2017 ~~compared~~due to ~~27.1% in~~ the ~~second quarter of 2016, which helped to mitigate their 22 basis point decline in yield. While the yield on taxable securities~~previously mentioned purchases at higher current rates.

Total portfolio loans increased ~~by 14 basis points from the second quarter of 2016, taxable securities balances decreased by $168.4~~$402.5 million or 9.8% from the second quarter of 2016 due to maturities, calls, sales and paydowns. These securities were not fully replaced due to management’s focus on maintaining the size of the balance sheet in order to delay the financial impact of crossing $10 billion in assets.

~~Portfolio loans increased $1.2 billion or 23.6%~~6.3% over the last twelve months, ~~with $1.0 billion from the YCB acquisition and $210.1~~while total commercial loans increased $333.9 million or ~~4.1% from organic loan growth. Organic loan~~8.0%. Loan growth was achieved through ~~$2.2~~$1.9 billion in total loan originations, led by $1.2 billion in ~~the last twelve months. Total~~ business loan originations ~~were up approximately 37.6% over~~for the ~~last year. Organic loan~~past twelve months. Loan growth was driven by the acquisition of FTSB, expanded market areas and additional commercial personnel in our core ~~markets.~~markets, partially offset by significant loan paydowns or payoffs as some loans moved into the secondary lending market by customers who refinanced their mortgages, and targeted reductions of the consumer portfolio to reduce the risk profile of the loan portfolio.

Interest expense increased ~~$2.2~~$6.5 million or ~~28.3%~~65.1% in the second quarter of ~~2017~~2018 and ~~$3.7~~$10.4 million or ~~23.5% in the first half of 2017~~54.3%year-to-date compared to the same periods ~~in 2016,~~of 2017, due primarily to increases in the balances of interest bearing liabilities from the acquisition of FTSB and increases in the rates paid on ~~most~~all interest bearing liability categories. The cost of interest bearing liabilities increased by 830 basis points infrom the second quarter of 2017 to 0.91% in the first quarter of 2018. Average interest bearing deposits increased by $360.8 million or 6.8% from the second quarter of 2017, due primarily to the acquisition of FTSB and organic deposit growth, which offset a $247.3 million or 17.6% decrease in certificates of deposit, excluding those acquired from FTSB. The rate on interest bearing deposits increased by 17 basis points from the second quarter of 2017, primarily from increases in rates on

interest bearing public funds. Averagenon-interest bearing demand deposits increased from the second quarter of 2017 to the second quarter of 2018 by $224.5 million or 12.4% and are now 26.4% of total average deposits, compared to 25.4% in 2017, reflecting customers’ preferences and marketing strategies. Organic averagenon-interest bearing demand deposits increased $99.4 million or 5.5% during this same ~~period~~time period. The increase innon-interest bearing deposits reflect positively in the net interest margin, as the benefit of ~~2016.~~non-interest bearing liabilities increased by 8 basis points from the second quarter of 2017 to the second quarter of 2018. Average other borrowings and subordinated debt balances increased by ~~$116.0~~$127.4 million or ~~57.5%~~40.1% from the second quarter of ~~2016 primarily~~2017, due to ~~debt acquired in~~ the ~~YCB acquisition. However, FHLB borrowings decreased by $74.3 million or 7.3% from the second quarter~~acquisition of ~~2016 due to scheduled maturities of borrowings, while~~FTSB, and their average rates paid increased by 1475 and 66 basis points, respectively, over this same time period due to ~~a lengthening~~increases in ~~average~~LIBOR, the index upon which most of this variable-rate type of borrowing term. Average interest bearing deposits increased by $578.2 million or 12.2% from the second quarter of 2016, also due to the YCB acquisition. Slightly offsetting the previously mentioned increases, theis priced. The average balance of ~~CDs decreased $85.9~~FHLB borrowings increased by $233.6 million from the second quarter of ~~2016, even after acquiring YCB’s CD portfolio. This decrease was partially~~2017, and their average rate paid increased by 69 basis points to 2.02% over this same time period due to ~~an $80.8 million reduction in CDARS~~^® ~~balances from $205.6 million at June 30, 2016~~higher interest rates and the replacement of some maturing shorter-term borrowings with those of a medium-term length throughout 2017 and the first half of 2018 to ~~$124.8 million at June 30, 2017.In addition,non-interest~~ ~~bearing demand deposits increased by $466.7 million from the second quarter of 2016~~improve asset sensitivity and ~~are now 25.4% of total average deposits, compared to 22.1% in the second quarter of 2016, reflecting customers’ preferences toward demand deposits, and marketing strategies.~~liquidity measures.


																						For the Three Months Ended June 30,										For the Six Months Ended June 30,
		For the Three Months Ended June 30,										For the Six Months Ended June 30,										2018					2017					2018					2017
		2017					2016					2017					2016					Average		Average			Average		Average			Average		Average			Average		Average
*(unaudited, dollars in thousands)*		Average Balance		Average Rate			Average Balance		Average Rate			Average Balance		Average Rate			Average Balance		Average Rate			Balance		Rate			Balance		Rate			Balance		Rate			Balance		Rate
ASSETS
Due from banks—interest bearing		$	12,875		0.75	%	$	20,985		0.72	%	$	13,398		0.63	%	$	38,805		0.45	%
Due from banks – interest bearing																						$	53,896		2.09	%	$	12,875		0.75	%	$	31,436		2.08	%	$	13,398		0.63	%
Loans, net of unearned income⁽¹⁾			6,365,965		4.24	%		5,156,789		4.11	%		6,322,582		4.22	%		5,124,942		4.12	%		6,785,550		4.64	%		6,365,965		4.24	%		6,563,782		4.54	%		6,322,582		4.22	%
Securities:⁽²⁾
Taxable			1,550,114		2.42	%		1,718,491		2.28	%		1,576,578		2.41	%		1,744,438		2.29	%		2,128,446		2.67	%		1,550,114		2.42	%		1,959,828		2.63	%		1,576,578		2.41	%
Tax-exempt⁽³⁾			720,561		4.15	%		638,746		4.37	%		723,593		4.15	%		635,773		4.39	%		750,138		3.41	%		720,561		4.15	%		733,970		3.41	%		723,593		4.15	%

Total securities			2,270,675		2.97	%		2,357,237		2.84	%		2,300,171		2.95	%		2,380,211		2.85	%		2,878,584		3.05	%		2,270,675		2.97	%		2,693,798		2.84	%		2,300,171		2.95	%
Other earning assets			46,525		4.62	%		45,354		4.72	%		46,774		4.52	%		45,577		4.43	%		57,259		5.72	%		46,525		4.62	%		53,843		5.86	%		46,774		4.52	%

Total earning assets⁽³⁾			8,696,040		3.91	%		7,580,365		3.71	%		8,682,925		3.88	%		7,589,535		3.71	%		9,775,289		4.11	%		8,696,040		3.91	%		9,342,859		4.05	%		8,682,925		3.88	%

Other assets			1,132,435					925,437					1,122,181					939,226					1,143,442					1,132,435					1,115,743					1,122,181

Total Assets		$	9,828,475				$	8,505,802				$	9,805,106				$	8,528,761				$	10,918,731				$	9,828,475				$	10,458,602				$	9,805,106

LIABILITIES AND SHAREHOLDERS’ EQUITY	LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing demand deposits		$	1,634,305		0.37	%	$	1,230,484		0.21	%	$	1,585,564		0.33	%	$	1,209,989		0.19	%	$	1,849,035		0.68	%	$	1,634,305		0.37	%	$	1,773,813		0.64	%	$	1,585,564		0.33	%
Money market accounts			1,014,682		0.25	%		915,879		0.20	%		1,026,567		0.24	%		937,846		0.19	%		1,035,567		0.42	%		1,014,682		0.25	%		1,020,486		0.39	%		1,026,567		0.24	%
Savings deposits			1,253,444		0.06	%		1,091,950		0.06	%		1,240,390		0.06	%		1,088,154		0.06	%		1,367,193		0.07	%		1,253,444		0.06	%		1,327,875		0.06	%		1,240,390		0.06	%
Certificates of deposit			1,403,818		0.71	%		1,489,764		0.70	%		1,428,892		0.69	%		1,535,061		0.69	%		1,415,259		0.84	%		1,403,818		0.71	%		1,328,724		0.84	%		1,428,892		0.69	%

Total interest bearing deposits			5,306,249		0.36	%		4,728,077		0.33	%		5,281,413		0.35	%		4,771,050		0.32	%		5,667,054		0.53	%		5,306,249		0.36	%		5,450,898		0.50	%		5,281,413		0.35	%
Federal Home Loan Bank borrowings			947,346		1.33	%		1,021,642		1.19	%		948,168		1.27	%		1,031,378		1.19	%		1,180,939		2.02	%		947,346		1.33	%		1,109,586		1.90	%		948,168		1.27	%
Other borrowings			153,565		0.68	%		95,522		0.42	%		175,341		0.64	%		91,277		0.40	%		272,208		1.43	%		153,565		0.68	%		238,707		1.29	%		175,341		0.64	%
Junior subordinated debt			164,184		4.37	%		106,196		3.18	%		164,050		4.43	%		106,196		3.15	%		172,972		5.03	%		164,184		4.37	%		168,677		4.91	%		164,050		4.43	%

Total interest bearing liabilities ⁽¹⁾			6,571,344		0.61	%		5,951,437		0.53	%		6,568,972		0.59	%		5,999,901		0.52	%		7,293,173		0.91	%		6,571,344		0.61	%		6,967,868		0.86	%		6,568,972		0.59	%
Non-interest bearing demand deposits			1,806,144					1,339,436					1,793,897					1,322,853					2,030,649					1,806,144					1,950,581					1,793,897
Other liabilities			73,721					58,006					74,748					57,788					77,873					73,721					80,681					74,748
Shareholders’ equity			1,377,266					1,156,923					1,367,489					1,148,219					1,517,036					1,377,266					1,459,472					1,367,489

Total Liabilities and Shareholders’ Equity		$	9,828,475				$	8,505,802				$	9,805,106				$	8,528,761				$	10,918,731				$	9,828,475				$	10,458,602				$	9,805,106

Taxable equivalent net interest spread					3.30	%				3.18	%				3.29	%				3.19	%				3.20	%				3.30	%				3.19	%				3.29	%
Taxable equivalent net interest margin					3.45	%				3.30	%				3.43	%				3.29	%				3.43	%				3.45	%				3.41	%				3.43	%

TABLE 3. RATE/VOLUME ANALYSIS OF CHANGES IN INTEREST INCOME AND INTEREST EXPENSE


																			Three Months Ended June 30, 2018								Six Months Ended June 30, 2018
	Three Months Ended June 30, 2017 Compared to June 30, 2016									Six Months Ended June 30, 2017 Compared to June 30, 2016									Compared to June 30, 2017								Compared to June 30, 2017
*(unaudited, in thousands)*	Volume			Rate			Net Increase (Decrease)			Volume			Rate			Net Increase (Decrease)			Volume		Rate			Net Increase (Decrease)			Volume			Rate			Net Increase (Decrease)
Increase (decrease) in interest income:
Due from banks—interest bearing	$	(15	)	$	1		$	(14	)	$	(72	)	$	26		$	(46	)
Due from banks – interest bearing																			$	13	$	7		$	20		$	1		$	2		$	3
Loans, net of unearned income		12,347			2,316			14,663			24,736			2,487			27,223			4,505		6,673			11,178			5,173			10,240			15,413
Taxable securities		(994	)		594			(400	)		(1,988	)		965			(1,023	)		3,779		1,040			4,819			4,918			1,850			6,768
Tax-exempt securities⁽¹⁾		863			(365	)		498			1,851			(782	)		1,069			297		(1,381	)		(1,084	)		212			(2,702	)		(2,490	)
Other earning assets		14			(12	)		2			27			22			49			256		264			520			271			530			801

Total interest income change⁽¹⁾		12,215			2,534			14,749			24,554			2,718			27,272			8,850		6,603			15,453			10,575			9,920			20,495

Increase (decrease) in interest expense:
Interest bearing demand deposits		256			607			863			433			1,016			1,449			220		1,424			1,644			341			2,733			3,074
Money market accounts		51			143			194			90			222			312			14		435			449			(7	)		761			754
Savings deposits		22			(2	)		20			45			(8	)		37			17		25			42			27			22			49
Certificates of deposit		(165	)		73			(92	)		(377	)		37			(340	)		20		466			486			(362	)		973			611
Federal Home Loan Bank borrowings		(230	)		344			114			(518	)		399			(119	)		905		1,903			2,808			1,147			3,324			4,471
Other borrowings		81			82			163			228			151			379			294		417			711			256			716			972
Junior subordinated debt		554			394			948			1,111			826			1,937			99		281			380			104			406			510

Total interest expense change		569			1,641			2,210			1,012			2,643			3,655			1,569		4,951			6,520			1,506			8,935			10,441

Net interest income increase (decrease)⁽¹⁾	$	11,646		$	893		$	12,539		$	23,542		$	75		$	23,617		$	7,281	$	1,652		$	8,933		$	9,069		$	985		$	10,054

The provision for credit losses is the amount to be added to the allowance for credit losses after net charge-offs have been deducted to bring the allowance to a level considered appropriate to absorb probable losses in the loan portfolio. The provision for credit losses also includes the amount to be added to the reserve for loan commitments to bring that reserve to a level considered appropriate to absorb probable losses on unfunded commitments. The provision for credit losses ~~increased~~decreased to $1.7 million in the second quarter of 2018 compared to $2.4 million in the second quarter of 2017 ~~compared to $1.8 million in the second quarter of 2016~~ due primarily to the consistent high quality of the loan ~~growth. Credit quality continues~~portfolio. Overall, most credit ratios continued to ~~be excellent and improved year-over-year~~improve on a percentage ~~basis.~~basis, year-over-year.Non-performing loans (including TDRs), and criticized and classified loans all improved as a percentage of total portfolio loans from June 30, ~~2016.~~2017. Total~~Non-performing~~non-performing loans were ~~0.67%~~0.57% of total loans at June 30, ~~2017,~~2018, decreasing from ~~0.80%~~0.67% of total loans at the end of the second quarter of ~~2016.~~2017. Criticized and classified loans were ~~1.25%~~1.08% of total loans, improving from ~~1.53%~~1.25% at June 30, ~~2016.~~2017. Past due loans at June 30, 2018 were 0.23% of total loans, compared to 0.33% at June 30, 2017. Annualized net loan charge-offs ~~as a percentage of average portfolio loans were~~also decreased from 0.09% ~~in the second quarter of~~at June 30, 2017 ~~as compared~~ to ~~0.08% in the second quarter of 2016.~~0.03% at June 30, 2018. (Please see the Allowance for Credit Losses section of this MD&A for additional discussion).


	For the Three Months Ended June 30,										For the Six Months Ended June 30,										For the Three Months Ended June 30,										For the Six Months Ended June 30,
*(unaudited, dollars in thousands)*	2017		2016		$ Change			% Change			2017		2016		$ Change			% Change			2018		2017		$ Change			% Change			2018		2017		$ Change			% Change
Trust fees	$	5,572	$	5,036	$	536			10.6	%	$	11,716	$	10,747	$	969			9.0	%	$	5,752	$	5,572	$	180			3.2	%	$	12,255	$	11,716	$	539			4.6	%
Service charges on deposits		5,081		4,176		905			21.7	%		9,933		8,128		1,805			22.2	%		5,146		5,081		65			1.3	%		9,969		9,933		36			0.4	%
Electronic banking fees		4,984		3,742		1,242			33.2	%		9,512		7,345		2,167			29.5	%		5,728		4,984		744			14.9	%		10,558		9,512		1,046			11.0	%
Net securities brokerage revenue		1,680		1,750		(70	)		(4.0	%)		3,442		3,646		(204	)		(5.6	%)		1,809		1,680		129			7.7	%		3,479		3,442		37			1.1	%
Bank-owned life insurance		1,367		942		425			45.1	%		2,508		1,915		593			31.0	%		1,128		1,367		(239	)		(17.5	%)		3,884		2,508		1,376			54.9	%
Net gains on sales of mortgage loans		968		683		285			41.7	%		2,408		1,231		1,177			95.6	%
Mortgage banking income																						1,670		968		702			72.5	%		2,776		2,408		368			15.3	%
Net securities gains		494		585		(91	)		(15.6	%)		506		1,696		(1,190	)		(70.2	%)		358		494		(136	)		(27.5	%)		319		506		(187	)		(37.0	%)
Net gain on other real estate owned and other assets		342		214		128			59.8	%		307		196		111			56.6	%		229		342		(113	)		(33.0	%)		491		307		184			59.9	%
Net insurance services revenue		735		715		20			2.8	%		1,652		1,690		(38	)		(2.2	%)		711		735		(24	)		(3.3	%)		1,602		1,652		(50	)		(3.0	%)
Swap fee and valuation income		65		922		(857	)		(93.0	%)		822		929		(107	)		(11.5	%)		178		65		113			173.8	%		695		822		(127	)		(15.5	%)
Other		834		826		8			1.0	%		2,200		1,461		739			50.6	%		699		834		(135	)		(16.2	%)		1,463		2,200		(737	)		(33.5	%)

Totalnon-interest income	$	22,122	$	19,591	$	2,531			12.9	%	$	45,006	$	38,984	$	6,022			15.4	%	$	23,408	$	22,122	$	1,286			5.8	%	$	47,491	$	45,006	$	2,485			5.5	%

Non-interest income is a significant source of revenue and an important part of WesBanco’s results of operations. WesBanco offers its customers a wide range of retail, commercial, investment and electronic banking services, which are viewed as a vital component of WesBanco’s ability to attract and maintain customers, as well as providing additional fee income beyond normal spread-related income to WesBanco. For the second quarter of ~~2017,~~2018,non-interest income increased ~~$2.5~~$1.3 million or ~~12.9%~~5.8% compared to the second quarter of ~~2016.~~2017. The increase is driven by a ~~$1.2~~$0.7 million increase in electronic banking fees, a ~~$0.9~~$0.7 million increase in ~~service charges on deposits,~~mortgage banking income and a ~~$0.5~~$0.2 million increase in trust fees, ~~while swap fee income decreased $0.9 million~~partially offset by decreases in bank-owned life insurance, net securities gains and net gain on other real estate owned and other assets compared to the second quarter of ~~2016.~~2017. For the six months ended June 30, ~~2017,non-interest~~2018, bank-owned life insurance increased $1.4 million, electronic banking fees increased $1.0 million, trust fees increased $0.5 million, partially offset by an other income ~~increased $6.0~~decrease of $0.7 million ~~or 15.4%, reflecting similar trends as in~~compared to the ~~second quarter, as well as reduced securities gains year over year due to one agency note called in the first~~ six months ~~of 2016 resulting in a $0.9 million securities gain.~~ended June 30, 2017.

Trust fees increased ~~$0.5~~$0.2 million or ~~10.6%~~3.2% compared to the second quarter of ~~2016~~2017 due to market improvements and customer and revenue development ~~initiatives, and higher estate fees.~~initiatives. Total trust assets have increased ~~$0.1~~$0.2 billion ~~from $3.7~~to $4.0 billion atas of June 30, ~~2016~~2018 compared to $3.8 billion atas of June 30, 2017. For the six months ended June 30, 2018, trust fees increased $0.5 million or 4.6% as compared to June 30, 2017. At June 30, ~~2017,~~2018, trust assets include managed assets of ~~$3.2~~$3.3 billion andnon-managed (custodial) assets of ~~$0.6~~$0.7 billion. Assets managed for the WesMark Funds, a proprietary group of mutual funds that is advised by WesBanco Trust and Investment Services, were ~~$925.6~~$934.9 million as of June 30, ~~2017~~2018 and ~~$895.0~~$925.6 million at June 30, ~~2016, which~~2017 and are included in ~~trust managed~~trust-managed assets.

Service charges on deposits increased ~~$0.9~~$0.1 million or ~~21.7%~~1.3% compared to second quarter of 2017 due to the increased customer base from the FTSB acquisition. The increase from the FTSB acquisition was partially offset by a decrease in transaction-based fees including insufficient funds fees as compared to the second quarter of 2016 due to the larger customer deposit base from the YCB acquisition. For the six months ended June 30, 2017, service charges on deposits increased $1.8 million or 22.2% as compared to the six months ended June 30, 2016.2017. Deposits increased ~~$1.1~~$0.7 billion ~~or 19.3%~~ to ~~$7.1~~$7.7 billion as of June 30, ~~2017 as~~2018 compared to $7.0 billion as of June 30, ~~2016.~~2017.

Electronic banking fees, which include debit card interchange fees, ~~continued to grow, increasing $1.2~~increased $0.7 million or ~~33.2%~~14.9% compared to the second quarter of ~~2016,~~2017 due to an increased customer base from the FTSB acquisition, a higher volume of debit card transactions from ~~the YCB acquisition as well as~~ WesBanco’s legacy ~~customers.~~customers and an ATM fee increase. The volume increase ~~in our legacy markets~~ is due to ~~marketing and process initiatives as well as~~ a higher percentage of customers using these ~~products.~~products as well as marketing initiatives. Beginning in the third quarter of 2019, WesBanco will have reduced debit card interchange revenue due to the applicability of the Durbin Amendment of the Dodd-Frank Act.

Bank-owned life insurance ~~revenue increased $0.4~~decreased $0.2 million or ~~45.1%~~17.5% compared to ~~the~~ second quarter of ~~2016~~2017 due to ~~the YCB acquisition as well as~~ death ~~benefits of $0.2 million.~~claims in 2017. For the six months ended June 30, ~~2017,~~2018, bank-owned life insurance ~~revenue~~ increased ~~$0.6~~$1.4 million or ~~31.0% as~~54.9% compared to the six months ended June 30, ~~2016.~~2017 due to death benefits received in first quarter of 2018. The total cash surrender value of bank-owned life insurance increased ~~$37.4~~$1.4 million to ~~$190.3~~$191.7 million as of June 30, ~~2017 as~~2018 compared to ~~$152.9 million as of~~ June 30, ~~2016, due mostly to the YCB acquisition plus an increase over the last twelve months in policy cash surrender values.~~2017.

~~Net gains on sales of mortgage loans~~Mortgage banking income increased ~~$0.3~~$0.7 million or ~~41.7%~~72.5% compared to second quarter of 2017 partially due to a $0.2 million favorable market adjustment recognized during the second quarter of ~~2016 due to increased production volumes combined with~~2018 and higher ~~sales percentages. Total mortgage~~margins on loans sold. Mortgage production was ~~$106.3~~$141.5 million, ~~in the second quarter of 2017, up 4.3%~~which increased 33.2% from the comparable ~~2016~~2017 quarter. Mortgages sold into the secondary market represented ~~$58.4~~$50.0 million or ~~54.9%~~35.4% of overall mortgage loan production in the second quarter of ~~2017~~2018 compared to ~~$41.5~~$58.4 million or ~~40.7%~~55.0% in ~~the same 2016 period. For the six months ended June 20, 2017, net gains on sales of mortgage loans increased $1.2 million or 95.6% as compared to June 30, 2016.~~

~~Swap fee and valuation income decreased $0.9 million or 93.0% compared to~~ the second quarter of ~~2016 due to the prior year quarter including higher commercial customer loan swap-related income, primarily from one larger commercial loan relationship.~~2017. For the six months ended June 30, ~~2017, swap fee and valuation~~2018, mortgage banking income ~~decreased $0.1~~increased $0.4 million or ~~11.5% as~~15.3% compared to June 30, ~~2016.~~2017.


	For the Three Months Ended June 30,										For the Six Months Ended June 30,										For the Three Months Ended June 30,										For the Six Months Ended June 30,
*(unaudited, dollars in thousands)*	2017		2016		$ Change			% Change			2017		2016		$ Change			% Change			2018		2017		$ Change			% Change			2018		2017			$ Change			% Change
Salaries and wages	$	23,616	$	19,731	$	3,885			19.7	%	$	46,618	$	38,911	$	7,707			19.8	%	$	26,872	$	23,616	$	3,256			13.8	%	$	51,878	$	46,618	��	$	5,260			11.3	%
Employee benefits		7,731		7,332		399			5.4	%		15,941		14,409		1,532			10.6	%		7,965		7,731		234			3.0	%		14,877		15,941			(1,064	)		(6.7	%)
Net occupancy		4,510		3,220		1,290			40.1	%		8,837		6,811		2,026			29.7	%		4,103		4,510		(407	)		(9.0	%)		8,759		8,837			(78	)		(0.9	%)
Equipment		4,097		3,402		695			20.4	%		8,139		6,830		1,309			19.2	%		4,095		4,097		(2	)		(0.0	%)		8,044		8,139			(95	)		(1.2	%)
Marketing		2,060		1,608		452			28.1	%		2,884		2,581		303			11.7	%		1,405		2,060		(655	)		(31.8	%)		2,521		2,884			(363	)		(12.6	%)
FDIC insurance		906		1,099		(193	)		(17.6	%)		1,733		2,264		(531	)		(23.5	%)		868		906		(38	)		(4.2	%)		1,526		1,733			(207	)		(11.9	%)
Amortization of intangible assets		1,240		697		543			77.9	%		2,513		1,427		1,086			76.1	%		1,312		1,240		72			5.8	%		2,397		2,513			(116	)		(4.6	%)
Restructuring and merger-related expenses		—		694		(694	)		(100.0	%)		491		694		(203	)		(29.3	%)		5,412		—		5,412			100.0	%		5,657		491			5,166			1052.1	%
Franchise and other miscellaneous taxes		2,045		1,622		423			26.1	%		4,129		3,238		891			27.5	%		2,083		2,045		38			1.9	%		4,318		4,129			189			4.6	%
Postage and courier expenses		970		843		127			15.1	%		1,990		1,541		449			29.1	%		985		970		15			1.5	%		1,945		1,990			(45	)		(2.3	%)
Consulting, regulatory, accounting and advisory fees		1,654		1,274		380			29.8	%		3,328		2,580		748			29.0	%		1,747		1,654		93			5.6	%		3,278		3,328			(50	)		(1.5	%)
Other real estate owned and foreclosure expenses		326		279		47			16.8	%		655		607		48			7.9	%		251		326		(75	)		(23.0	%)		449		655			(206	)		(31.5	%)
Legal fees		650		695		(45	)		(6.5	%)		1,411		1,276		135			10.6	%		644		650		(6	)		(0.9	%)		1,357		1,411			(54	)		(3.8	%)
Communications		634		363		271			74.7	%		1,381		721		660			91.5	%		565		634		(69	)		(10.9	%)		1,054		1,381			(327	)		(23.7	%)
ATM and electronic banking interchange expenses		1,202		1,057		145			13.7	%		2,291		2,190		101			4.6	%		1,299		1,202		97			8.1	%		2,515		2,291			224			9.8	%
Supplies		901		683		218			31.9	%		1,729		1,364		365			26.8	%		778		901		(123	)		(13.7	%)		1,465		1,729			(264	)		(15.3	%)
Other		3,342		2,761		581			21.0	%		6,198		5,259		939			17.9	%		3,159		3,342		(183	)		(5.5	%)		6,074		6,198			(124	)		(2.0	%)

Totalnon-interest expense	$	55,884	$	47,360	$	8,524			18.0	%	$	110,268	$	92,703	$	17,565			18.9	%	$	63,543	$	55,884	$	7,659			13.7	%	$	118,114	$	110,268		$	7,846			7.1	%

Non-interest expense in the second quarter of ~~2017 grew $8.5~~2018 increased by $7.7 million or 13.7% compared to the same quarter in ~~2016, principally from~~2017 primarily due to the ~~YCB acquisition.~~FTSB acquisition, which closed on April 5, 2018. Excluding merger-related expenses,~~Non-interest~~non-interest expense ~~for~~increased $2.2 million or 4.0%. For the second quarter, restructuring and merger-related expenses increased $5.4 million and salaries and wages increased $3.3 million, offset by a $0.7 million decrease in marketing, a $0.4 million decrease in net occupancy, coupled with decreases in various other expense categories. For the six months ended June 30, ~~2017 grew $17.6 million compared to the same period in 2016. For the second quarter,~~2018, salaries and wages increased ~~$3.9~~$5.3 million ~~or 19.7% due primarily to increased compensation expense related to annual compensation adjustments~~ and an increase in full-time equivalent employees from the acquisition. Net occupancy increased $1.3 million or 40.1% primarily related to the YCB acquisition, which added 34 new branch locations. Nearly all otherrestructuring and merger-related expenses increased ~~primarily from the acquisition as well.~~$5.2 million, which were partially offset by a $1.1 million decrease in employee benefits.

Salaries and wages increased ~~$3.9~~$3.3 million or ~~19.7%~~13.8% from the second quarter of ~~2016 and $7.7 million or 19.8% over the first half of 2016~~2017 due to increased compensation ~~expense~~ related to ~~an 18.7%~~a 4.1% increase in full-time equivalent employees primarily ~~from~~related to the ~~acquisition,~~FTSB acquisition. In addition, due to the adoption of a new accounting standard, salaries and wages included $0.7 million related to pension service expense for the second quarter of 2018, which was classified within employee benefits for the second quarter of 2017. The remaining increase is due to routine annual compensation adjustments ~~to compensation.~~and stock based compensation increases. Employee benefits expense increased ~~$0.4~~$0.2 million ~~or 5.4%~~ compared to the second quarter of ~~2016~~2017 due to a $0.9 million increase in health care costs and ~~$1.5~~a $0.2 million ~~or 10.6% over the first half of 2016 primarily from the additional employees as well as seasonally higher~~increase in employer payroll ~~taxes in the first quarter, which was partially~~tax expense, offset by a $1.0 million decrease in pension costs. Pension costs excluding the service component decreased $0.3 million for the second quarter 2018 compared to the second quarter of 2017.

Net occupancy costs ~~increased $1.3~~decreased $0.4 million or ~~40.1% from~~9.0% compared to the second quarter of ~~2016 and $2.0 million or 29.7% over the first half of 2016~~2017, primarily due to ~~increased~~decreased building-related costs including utilities, lease expense, depreciation, repairs and other seasonal maintenance costs. For the six months ended June 30, 2018, net occupancy costs ~~primarily due~~decreased 0.9% compared to the ~~34 YCB branch locations acquired and normal building maintenance and repair costs of the legacy branch network and other infrastructure needs.~~six months ended June 30, 2017.

~~Equipment costs increased~~Marketing expenses decreased $0.7 million or 20.4% from the second quarter of 2016 and $1.3 million or 19.2% over the first half of 2016 due to continuous improvements in technology and communication infrastructure, software costs and origination and customer support centers combined with the YCB acquisition.

FDIC insurance decreased $0.2 million compared to the second quarter 2016 and $0.5 million over the first half of 2016 despite a larger balance sheet from the YCB acquisition. The Deposit Insurance Fund reached 1.15% prior to July 1, 2016, thus allowing the FDIC to institute new favorable assessment rate calculations beginning on that date for banks under $10 billion in size. WesBanco also experienced a further decrease in FDIC insurance expense based on continuing improvement in certain risk factors.

~~Amortization of intangible assets of $1.2 million in the second quarter, an increase of $0.5 million~~31.8% compared to the second quarter of ~~2016, included $0.6~~2017. The decrease is primarily due to the timing of advertising and promotional expense as WesBanco focused on the FTSB acquisition during the second quarter of 2018 a portion of which is accounted for in merger-related expenses. For the six months ended June 30, 2018, marketing expense decreased $0.4 million ~~related~~or 12.6% compared to the six months ended June 30, 2017.

Restructuring and merger-related expenses in 2018 relate to the FTSB acquisition that closed on April 5, 2018 as well as the FFKT acquisition, which is expected to close in the third quarter of 2018. The restructuring and merger-related expenses in 2017 relate to the YCB ~~acquisition. The YCB~~ acquisition ~~added approximately $12.0~~that closed on September 9, 2016. Of the $5.7 million in ~~core deposit intangibles~~restructuring costs for the six months ended June 30, 2018, $5.0 million relate to FTSB and $0.7 million relate to FFKT. The FTSB costs included $2.2 million in contract termination and conversion costs, $0.8 million infor investment banking services and $0.7 million for~~non-compete~~change-in-control ~~agreements with former YCB executives covering a three-year term.~~payments. The $0.7 million FFKT costs are primarily for legal and investment banking services.

~~Franchise and other miscellaneous taxes increased $0.4~~Communications expense decreased $0.1 million or 10.9% compared to the second quarter of ~~2016 and $0.9~~2017. For the six months ended June 30, 2018, communications expense decreased $0.3 million ~~over the first half of 2016 due~~or 23.7% compared to the ~~YCB acquisition~~six months ended June 30, 2017. WesBanco improved the technology and ~~organic company growth.~~

~~Professional fees have increased $0.4 million from~~communications infrastructure at the ~~second quarter of 2016 and $0.7 million over~~formerYCB-acquired branches, which permitted cost savings as noted in the first half of 2016 primarily due to certain third-party fees associated with the increased volume in loan originations, as well as consulting fees related to preparations for certain regulatory requirements, such as stress testing, for institutions that exceed $10 billion in total assets. Postage, communications, supplies and other expenses have increased a total of $1.2 million from the second quarter of 2016 primarily due to normal operating expenses related to the YCB acquisition.current period.

The provision for income taxes ~~increased $3.5~~decreased $2.3 million or ~~20.8%, during~~24.0% in the ~~first half~~second quarter of 2018 compared to the second quarter of 2017, due to the enacted Federal tax reform legislation that reduced the corporate federal income tax rate from 35% to 21% effective January 1, 2018. Partially offsetting this decrease in income tax expense, second quarter 2018pre-tax income was 12.5% higher. As a result of these changes, the effective tax rate decreased to 18.1% compared to 26.8% in the second quarter of 2017. For the six months ended June 30, 2018, the provision for income taxes decreased $5.9 million or 29.3%, compared to the first half of ~~2016,~~2017, due in part to the decrease in the federal income tax rate, partially offset by a ~~17.4%~~11.8% increase in ~~the first half of 2017~~pre-tax income as compared to the same period of 2016. In addition, earlier this year the Company adopted a new accounting standard related to low income housing investment amortization, which, for the first six months of 2017, moved $0.8 million from other operating expense to the provision for income taxes. For the second quarter, the amount was $0.3 million. Additionally, the adoption of another new accounting standard resulted in the reclassification of excess tax benefits related to stock-based compensation from additional paid in capital in shareholders’ equity to income tax expense, which reduced income tax expense by $0.2 million in the second quarter and $0.3 million year to date. For the quarter, the provision increased 22.2% from last year due to higher~~pre-tax~~ ~~income and the above-noted additional factors.~~income. The effective tax rate was ~~29.1%~~17.7% for the ~~first quarter and 26.8% for~~six months ended June 30, 2018. WesBanco Bank Community Development Corporation (“WesBanco CDC”) was awarded multi-state New Market Tax Credits (“NMTC”) from the ~~second quarter, due to adjustments to the forecast for taxable income and permanent deductions for the remainder~~U.S. Department of the ~~year. Theyear-to-date~~ ~~effective~~Treasury’s Community Development Financial Institutions Fund (“CDFI Fund”) totaling $40 million of investments, which would provide a federal tax ~~rate~~credit of ~~28.0% is currently anticipated to be in the range of the approximate effective tax rate for the reminder of the year.~~$15.6 million over seven years.

Total assets increased ~~0.8% during the six months ended June 30, 2017,~~11.5%, while deposits and shareholders’ equity increased ~~0.4%~~8.9% and ~~2.7%~~9.2%, respectively, compared to December 31, ~~2016.~~2017, primarily due to the acquisition of FTSB. Total securities increased by $545.0 million or 23.9% from December 31, 2017 to June 30, 2018, and was driven by management’s strategy to exceed the $10 billion threshold in total assets during the first quarter of 2018 by purchasing taxable securities. These purchases had an average yield of approximately 3.06%. In addition, the FTSB acquisition provided $142.9 million of additional securities. Total portfolio loans increased ~~$141.0~~$451.5 million or ~~2.3%~~7.1% with $448.3 million from the FTSB acquisition and the remaining $3.2 million from WesBanco’s growth in strategic focus categories outpacing targeted reductions in the consumer portfolio and increased secondary market residential mortgage loan sales. Deposits increased $625.0 million fromyear-end, primarily due to the acquisition of FTSB. Organic deposits increased 0.5% as a result of ~~originations outpacingpay-downs,~~ ~~which were a result~~increases of ~~expanded market areas~~5.0% and ~~additional commercial personnel in WesBanco’s core markets. Deposits increased $31.6 million fromyear-end,~~ ~~resulting from a 3.5% increase~~4.6% in savings ~~deposits, a 2.7% increase in~~and demand deposits, respectively, which more than offset decreases of 2.6% and ~~a 1.0% increase~~12.7% in money market deposits ~~which more than offset the 7.4% decrease in~~and certificates of ~~deposit.~~deposit, respectively. The decrease in certificates of deposit is a result of periodically offering lower ~~rate offerings~~than median competitive rates for maturing certificates of deposit and customer preferences for other deposit types, or~~non-deposit~~ ~~products,~~ coupled with a ~~$10.4~~$26.6 million decrease in CDARS^® ~~balances and decreases in certificates of deposit balances acquired in the ESB and YCB transactions of $42.6 million and $19.7 million, respectively.~~balances. The ~~increases~~increase in demand deposits and savings deposits were attributable to marketing, incentives paid to customers, focused retail and business strategies to obtain more account relationships, and customers’ preference for short-term maturities, coupled with deposits from bonus and royalty payments for Marcellus and Utica shale gas payments from energy companies in WesBanco’s southwestern Pennsylvania, eastern Ohio and northern West Virginia markets. Total borrowings increased ~~1.6%~~28.9% during the first six months of ~~2017 primarily~~2018 as ~~a result of a $52.6~~short-term borrowings increased $73.3 million, ~~increase~~new FHLB borrowings exceeded maturities by $247.9 million, with the FTSB acquisition providing an additional $52.3 million in FHLB borrowings, and junior subordinated debt increased $1.1 million. The FTSB acquisition provided $9.3 million in junior subordinated debentures, which was partially offset by ~~a $31.7~~the redemption of $8.2 million ~~decrease~~ in ~~other short-term borrowings.~~junior subordinated debentures in June 2018. Proceeds from borrowings were utilized to purchase investment securities during the six months ended June 30, 2018. Total shareholders’ equity increased by approximately ~~$36.1~~$128.8 million or ~~2.7%~~9.2%, compared to December 31, ~~2016,~~2017, primarily due to $107.3 million of common stock issued in the FTSB acquisition and net income exceeding dividends for the period by ~~$29.4~~$40.4 million, ~~coupled with a $5.0~~which was partially offset by $21.9 million ~~decrease~~ in additional other comprehensive ~~losses.~~loss. The other comprehensive loss resulted from a $22.9 million unrealized loss in the securities portfolio, which was partially offset by a $1.0 million unrealized gain in the defined benefit pension plan during the period. The tangible equity to tangible assets ratio(non-GAAP measure) decreased from 8.79% at December 31, 2017 to 8.43% at June 30, 2018 as tangible assets increased at a faster pace than shareholders’ equity, primarily as a result of the FTSB acquisition.


	June 30,			December 31,
*(unaudited, dollars in thousands)*	2017			2016			$ Change			% Change			June 30, 2018			December 31, 2017			$ Change			% Change
Trading securities (at fair value)	$	7,880		$	7,071		$	809			11.4
Available-for-sale (at fair value)
Equity securities (at fair value)													$	13,495		$	13,457		$	38			0.3
Available-for-sale debt securities (at fair value)
U.S. Treasury														9,913			—			9,913			100.0
U.S. Government sponsored entities and agencies		43,836			54,043			(10,207	)		(18.9	)		100,682			71,843			28,839			40.1
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		926,759			938,289			(11,530	)		(1.2	)		1,373,417			934,922			438,495			46.9
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		115,522			96,810			18,712			19.3			140,647			114,867			25,780			22.4
Obligations of states and political subdivisions		112,675			111,663			1,012			0.9			126,799			104,830			21,969			21.0
Corporate debt securities		35,339			35,301			38			0.1			45,113			35,403			9,710			27.4

Total debt securities		1,234,131			1,236,106			(1,975	)		(0.2	)
Equity securities		5,289			5,070			219			4.3
Totalavailable-for-sale debt securities													$	1,796,571		$	1,261,865		$	534,706			42.4

Totalavailable-for-sale securities	$	1,239,420		$	1,241,176		$	(1,756	)		(0.1	)

Held-to-maturity (at amortized cost)
Held-to-maturity debt securities (at amortized cost)
U.S. Government sponsored entities and agencies	$	12,319		$	13,394		$	(1,075	)		(8.0	)	$	11,877		$	11,465		$	412			3.6
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		187,385			215,141			(27,756	)		(12.9	)		161,090			170,025			(8,935	)		(5.3	)
Obligations of states and political subdivisions		796,307			805,019			(8,712	)		(1.1	)		813,456			794,655			18,801			2.4
Corporate debt securities		34,383			34,413			(30	)		(0.1	)		33,323			33,355			(32	)		(0.1	)

Totalheld-to-maturity securities		1,030,394			1,067,967			(37,573	)		(3.5	)
Totalheld-to-maturity debt securities														1,019,746			1,009,500			10,246			1.0

Total securities	$	2,277,694		$	2,316,214		$	(38,520	)		(1.7	)	$	2,829,812		$	2,284,822		$	544,990			23.9

Available-for-sale and trading securities:
Available-for-sale and equity securities:
Weighted average yield at the respective period end⁽²⁾		2.31	%		2.22	%								2.63	%		2.35	%
As a % of total securities		54.8	%		53.9	%								64.0	%		55.8	%
Weighted average life (in years)		4.3			4.3									4.9			4.2

Held-to-maturity securities:
Weighted average yield at the respective period end⁽²⁾		3.81	%		3.76	%								3.44	%		3.85	%
As a % of total securities		45.2	%		46.1	%								36.0	%		44.2	%
Weighted average life (in years)		4.4			5.0									4.8			4.2

Total securities:
Weighted average yield at the respective period end⁽²⁾		2.99	%		2.93	%								2.92	%		3.01	%
As a % of total securities		100.0	%		100.0	%								100.0	%		100.0	%
Weighted average life (in years)		4.4			4.6									4.8			4.2

Total investment securities, which are a source of liquidity for WesBanco as well as a contributor to interest income, ~~decreased~~increased by ~~$38.5~~$545.0 million or ~~1.7%~~23.9% from December 31, ~~2016~~2017 to June 30, ~~2017.~~2018. Through the first six months of ~~2017,~~2018, theavailable-for-sale portfolio ~~decreased~~increased by ~~$1.8~~$534.7 million or ~~0.1%~~42.4%, while theheld-to-maturity portfolio ~~decreased~~increased by ~~$37.6~~$10.2 million or ~~3.5%~~1.0%. The ~~decrease~~increase in the overall portfolio from December 31, ~~2016~~2017 was ~~caused~~driven partially by ~~calls, maturities~~the acquisition of FTSB, and ~~paydowns exceeding purchases in the first six months of 2017, as a result of~~more significantly by management’s ~~strategies~~strategy to ~~remix earning assets to a higher percentage of loans and a lower percentage of securities and to control the size of the balance sheet to delay crossing~~exceed the $10 billion ~~asset size threshold. In addition, $9.4 million of securities were sold from~~threshold in total assets during the ~~HTM portfolio in the second~~first quarter of ~~2017, which resulted in $0.4 million in realized gains. These~~2018 by purchasing mortgage-backed securities ~~were all deemed to be at maturity, as less than 15%~~and collateralized mortgage obligations, with an average yield of ~~their acquired principal balance was remaining at the time of sale.~~approximately 3.06%. The weighted average yield of the portfolio ~~increased~~decreased by 69 basis points from 3.01% at December 31, ~~2016~~2017 to 2.92% at June 30, ~~2017. This yield increase was due to a continuing mix shift that resulted in a higher balance oftax-exempt~~ ~~securities to the total portfolio, as well as lower amortization expense on mortgage-backed securities from decreases in principal paydowns~~2018. Though market rates increased in the first ~~half~~six months of ~~2017. The~~2018 on all securities purchased, the decrease in the corporate federal tax rate from 35% to 21% reduced thetax-equivalent yield by approximately 67 basis points on thetax-exempt ~~portion of~~municipal bond portfolio, as the ~~investment portfolio generally provides~~tax benefit was reduced. This decrease in the ~~highest~~tax-equivalent ~~yields~~yield ontax-exempt municipals more than offset the general market rate increases, astax-exempt municipals comprise approximately 33% of ~~any security type within~~WesBanco’s investment portfolio. The higher-yielding 2018 purchases helped to mitigate the ~~portfolio.~~impact of thetax-equivalent yield reduction on the municipal bonds.

Net unrealized losses onavailable-for-sale securities included in accumulated other comprehensive income, net of tax, as of June 30, ~~2017~~2018 and December 31, ~~2016~~2017 were ~~$5.9~~$36.0 million and ~~$9.9~~$13.3 million, respectively. With approximately ~~45%~~36% of the investment portfolio in theheld-to-maturity

category, the recent volatility in interest rates does not have as much impact on other comprehensive income as if the entire portfolio were included in the categoryavailable-for-sale.

~~Trading~~Equity securities, of which a portion consist of investments in various mutual funds held in grantor trusts formed in connection with ~~an officer/~~a key officer and director deferred compensation plan, are recorded at fair value. Gains and losses due to fair value fluctuations on ~~trading~~equity securities are included in~~non-interest~~ ~~income under other income, while~~ net securities gains or losses. For those equity securities relating to the key officer and director deferred compensation plan, the corresponding change in the obligation to the employee is recognized in employee benefits expense.

WesBanco’s municipal portfolio comprises ~~39.9%~~33.2% of the overall securities portfolio as of June 30, ~~2017 as compared to 39.6%~~2018, which is down from 39.4% as of December 31, ~~2016,~~2017 due to the first quarter mortgage-backed and ~~it carries~~CMO purchases. Municipal bonds carry different risks that are not as prevalent in other security types contained in the portfolio. The following table presents the allocation of the municipal bond portfolio based on the combined S&P and Moody’s ratings of the individual bonds (at fair value):


	June 30, 2017				December 31, 2016				June 30, 2018				December 31, 2017
*(unaudited, dollars in thousands)*	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
Municipal bonds (at fair value) (1):
Moody’s: Aaa / S&P: AAA	$	96,577		10.4	$	93,676		10.1	$	103,690		11.0	$	96,253		10.5
Moody’s: Aa1 ; Aa2 ; Aa3 / S&P: AA+ ; AA ; AA-		704,263		75.9		700,506		75.5		700,217		74.2		685,446		74.9
Moody’s: A1 ; A2 ; A3 / S&P: A+ ; A ; A-		119,011		12.8		121,903		13.2		124,974		13.2		125,032		13.7
Moody’s: Baa1 ; Baa2 ; Baa3 / S&P: BBB+ ; BBB ;BBB- (2)		746		0.1		729		0.1		1,760		0.2		745		0.1
Not rated by either agency(3)		7,624		0.8		9,991		1.1		12,566		1.4		7,764		0.8

Total municipal bond portfolio	$	928,221		100.0	$	926,805		100.0	$	943,207		100.0	$	915,240		100.0

WesBanco’s municipal bond portfolio at June 30, 2018, consists of ~~both~~$188.8 million of taxable (primarily Build ~~America Bonds)~~America) and $754.4 million oftax-exempt general obligation and revenue ~~bonds from various municipalities, school districts and local revenue bond issues.~~bonds. The following table presents additional information regarding the municipal bond type and issuer (at fair value):


	June 30, 2017				December 31, 2016				June 30, 2018				December 31, 2017
*(unaudited, dollars in thousands)*	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
Municipal bond type:
General Obligation	$	636,814		68.6	$	638,868		68.9	$	654,368		69.4	$	630,824		68.9
Revenue		291,407		31.4		287,937		31.1		288,839		30.6		284,416		31.1

Total municipal bond portfolio	$	928,221		100.0	$	926,805		100.0	$	943,207		100.0	$	915,240		100.0

Municipal bond issuer:
State Issued	$	95,353		10.3	$	92,241		10.0	$	90,981		9.6	$	95,160		10.4
Local Issued		832,868		89.7		834,564		90.0		852,226		90.4		820,080		89.6

Total municipal bond portfolio	$	928,221		100.0	$	926,805		100.0	$	943,207		100.0	$	915,240		100.0

WesBanco’s municipal bond portfolio is broadly spread across the United States. The following table presents the top five states of municipal bond concentration ~~within those states~~ based on total fair value at June 30, ~~2017:~~2018:


	June 30, 2017				June 30, 2018
*(unaudited, dollars in thousands)*	Fair Value		% of Total		Fair Value		% of Total
Pennsylvania	$	201,793		21.7	$	197,774		21.0
Texas		109,169		11.8		105,683		11.2
Ohio		105,467		11.4		103,424		11.0
Illinois		51,332		5.5		50,236		5.3
West Virginia		35,120		3.8		40,309		4.3
All other states		425,340		45.8		445,781		47.2

Total municipal bond portfolio	$	928,221		100.0	$	943,207		100.0

WesBanco uses prices from independent pricing services and, to a lesser extent, indicative(non-binding) quotes from independent brokers, to measure the fair value of its securities. WesBanco validates prices received from pricing services or brokers using a variety of methods, including,

but not limited to, comparison to secondary pricing services, corroboration of pricing by reference to other independent market data such as secondary broker quotes and relevant benchmark indices, review of pricing by personnel familiar with market liquidity and other market-related conditions, review of pricing service methodologies, review of independent auditor reports received from the pricing service regarding its internal controls, and through review of inputs and assumptions used in pricing certain ~~securities~~ thinly traded securities or with limited observable data points. The procedures in place provide management with a sufficient understanding of the valuation models, assumptions, inputs and pricing to reasonably measure the fair value of WesBanco’s securities. For additional disclosure relating to fair value measurements, refer to Note 7,8, “Fair Value Measurement” in the Consolidated Financial Statements.

Loans represent WesBanco’s single largest balance sheet asset classification and the largest source of interest income. Business purpose loans consist of commercial real estate (“CRE”) loans and other commercial and industrial (“C&I”) loans that are not secured by real estate. CRE loans are further segmented into land and construction loans, and loans for improved property. Consumer purpose loans consist of residential real estate loans, home equity lines of credit and other consumer loans, including indirect and direct auto and truck loans. Loans held for sale generally consist of residential real estate loans originated for sale in the secondary market, but at times may also include other types of loans. The outstanding balance of each major category of the loan portfolio is summarized in Table 10.

The risk that borrowers will be unable or unwilling to repay their obligations and default on loans is inherent in all lending activities. Credit risk arises from many sources including general economic conditions, external events that impact businesses or industries, isolated events that impact a major employer, individual loss of employment or other personal hardships as well as changes in interest rates or the value of collateral. Credit risk is also impacted by a concentration of exposure within a geographic market or to one or more borrowers, industries or collateral types. The primary goal in managing credit risk is to minimize the impact of default by an individual borrower or group of borrowers. Credit risk is managed through the initial underwriting process as well as through ongoing monitoring and administration of the portfolio that varies by the type of loan. The Bank’s credit policies establish standard underwriting guidelines for each type of loan and require an appropriate evaluation of the credit characteristics of each borrower. This evaluation includes the borrower’s primary source of repayment capacity; the adequacy of collateral, if any, to secure the loan; the potential value of personal guarantees as secondary sources of repayment; and other factors unique to each loan that may increase or mitigate its risk. Credit bureau scores are also considered when evaluating consumer purpose loans as well as guarantors of business purpose loans. However, the Bank currently does not periodically update credit bureau scores subsequent to when loans are made to determine changes in credit history.

Credit risk is mitigated for all types of loans by continuously monitoring delinquency levels and pursuing collection efforts at the earliest stage of delinquency. The Bank also monitors general economic conditions, including employment, housing activity and real estate values in its market. The Bank also periodically evaluates and ~~changes~~adjusts its underwriting standards when warranted based on market conditions, the historical performance of a category of the portfolio, or other external factors. Credit risk is also regularly evaluated for the impact of adverse economic and other events that increase the risk of default and the potential inherent loss in the event of default to understand their impact on the Bank’s earnings and capital.


	June 30, 2017				December 31, 2016				June 30, 2018				December 31, 2017
*(unaudited, dollars in thousands)*	Amount		% of Loans		Amount		% of Loans		Amount		% of Loans		Amount		% of Loans
Commercial real estate:
Land and construction	$	615,881		9.6	$	496,539		7.9	$	481,690		7.1	$	392,597		6.2
Improved property		2,397,846		37.4		2,376,972		37.9		2,707,645		39.8		2,601,851		40.9

Total commercial real estate		3,013,727		47.0		2,873,511		45.8		3,189,335		46.9		2,994,448		47.1
Commercial and industrial		1,136,195		17.7		1,088,118		17.4		1,294,488		19.0		1,125,327		17.7
Residential real estate		1,363,579		21.3		1,383,390		22.1		1,450,829		21.3		1,353,301		21.3
Home equity		516,612		8.1		508,359		8.1		535,653		7.9		529,196		8.3
Consumer		360,304		5.6		396,058		6.3		322,594		4.7		339,169		5.3

Total portfolio loans		6,390,417		99.7		6,249,436		99.7		6,792,899		99.8		6,341,441		99.7
Loans held for sale		21,677		0.3		17,315		0.3		12,053		0.2		20,320		0.3

Total loans	$	6,412,094		100.0	$	6,266,751		100.0	$	6,804,952		100.0	$	6,361,761		100.0

Total ~~portfolio~~ loans increased ~~$141.0~~$443.2 million ~~or 2.3%~~ from December 31, ~~2016~~2017 with $448.3 million from the FTSB acquisition while organic portfolio loans decreased $5.1 million or 0.1%. Approximately $12.9 million in underperforming commercial loans from FTSB were sold during the second quarter. CRE land and ~~$1.2 billion or 23.6%~~construction provided the most significant organic growth, increasing 18.3% for theyear-to-date period. Total organic loan growth over the last twelve months was driven by strategic focus categories with ~~$1.0 billion from the YCB acquisition~~6.0% growth in CRE improved property and ~~$210.1 million or 4.1% from organic~~1.1% growth in residential real estate. Secondary market loan ~~growth. Expanded market areas and additional commercial personnel~~sales of residential mortgages decreased; however, higher premiums resulted in our core markets provided the growth, which occurred primarily in commercial real estate, commercial and industrial and home equity lending categories and was achieved through $2.2 billion in loan originations in the last twelve months. Total business loan originations were up approximately 37.6% over the last year. Residential real estate loans decreased, despite increased mortgage production, due to an increase in ~~loans sold into~~ the ~~secondary market and payoffs, while~~gain on sale of mortgages. In addition, the consumer ~~loans decreased $35.8 million or 9.0%~~portfolio declined due to ~~a reduced focus and~~targeted reductions to reduce its overall credit risk, which included certain pricing adjustments for indirect installment loans.

Total loan commitments of $2.1 billion, including loans approved but not closed, ~~of $1.9 billion,~~ increased ~~$102.2~~$233.2 million or ~~5.8%~~12.5% from December 31, ~~2016~~2017 due primarily to ~~the larger borrowing base from the YCB acquisition as well as typical seasonal increases, particularly in land and construction.~~unused lines of credit. The line utilization percentage for the commercial portfolio was ~~47.8%~~slightly higher at 48.5% as of June 30, ~~2017~~2018 and ~~45.5% at~~it was 48.0% as of December 31, ~~2016.~~2017.

The commercial portfolio is monitored for potential concentrations of credit risk by market, type of lending, CRE property type, C&I and owner-occupied CRE by industry, investment CRE dependence on common tenants and industries or property types that are similarly impacted by external factors.

The global decline in coal, oil and natural gas prices has had both a positive impact on the commercial portfolio by lowering all borrowers’ energy costs, but also resulted in a reduction in coal, oil and gas activity that adversely impacted certain industries or property types. At June 30, ~~2017~~2018 total exposure to core energy industries such as drilling, extraction, pipeline construction, mining equipment, investment real estate with energy-related tenants and other related support activities approximated ~~$49.5~~$51.5 million or ~~0.61%~~0.64% of the total loan portfolio as compared to ~~$52.7~~$55.2 million or ~~0.66%~~0.69% of the total loan portfolio at ~~March~~December 31, 2017. Exposure to ancillary industries such as utility distribution and transportation, engineering services, manufacturers and retailers of other heavy equipment used in core energy industries, approximates an additional ~~$65.0~~$59.7 million in exposure or ~~0.81%~~0.74% of the total loan portfolio as compared to ~~$62.7~~$65.3 million or ~~0.78%~~0.82% of the total loan portfolio at ~~March~~December 31, 2017. The largest exposure to any one borrower in either core energy or ancillary industries was ~~$24.9~~$20.2 million to a company that operates as a natural gas distribution utility.

Non-performing assets consist ofnon-accrual loans and TDRs, other real estate acquired through or in lieu of foreclosure, bank premises held for sale, and repossessed automobiles acquired to satisfy defaulted consumer loans.


*(unaudited, dollars in thousands)*	June 30, 2017			December 31, 2016			June 30, 2018			December 31, 2017
Non-accrual loans:
Commercial real estate - land and construction	$	413		$	766		$	—		$	239
Commercial real estate - improved property		14,859			9,535			9,479			13,318
Commercial and industrial		3,955			4,299			3,191			2,958
Residential real estate		12,225			12,994			13,951			14,661
Home equity		4,171			3,538			4,726			4,762
Consumer		612			652			634			887

Totalnon-accrual loans (1)		36,235			31,784			31,981			36,825

TDRs accruing interest:
Commercial real estate - land and construction		—			—			—			—
Commercial real estate - improved property		1,433			1,618			1,410			1,650
Commercial and industrial		137			152			126			128
Residential real estate		4,758			5,311			4,428			4,321
Home equity		437			473			417			407
Consumer		76			92			79			65

Total TDRs accruing interest (1)		6,841			7,646			6,460			6,571

Totalnon-performing loans	$	43,076		$	39,430		$	38,441		$	43,396

Other real estate owned and repossessed assets		6,723			8,346			4,384			5,297

Totalnon-performing assets	$	49,799		$	47,776		$	42,825		$	48,693

Non-performing loans/total portfolio loans		0.67	%		0.63	%		0.57	%		0.68	%
Non-performing assets/total assets		0.50	%		0.49	%		0.39	%		0.50	%
Non-performing assets/total portfolio loans, other real estate and repossessed assets		0.78	%		0.76	%		0.63	%		0.77	%

Non-performing loans, which consist ofnon-accrual loans and TDRs, ~~increased $3.6~~decreased $5.0 million or ~~9.2%~~11.4%, from December 31, ~~2016,~~2017, despite a $0.7 million increase from FTSB, as cash flows could not be reasonably estimated for a small population of FTSB loans acquired with deteriorated credit quality and therefore were accounted for under the cost recovery method. Certain other such loans from FTSB identified in due diligence as underperforming were sold after the acquisition was completed in the second quarter.Non-accrual loans decreased primarily due to ~~a purchased credit impaired~~the paydown of one large CRE loan ~~from ESB, placed on nonaccrual~~ in the first quarter. TDRs decreased ~~$0.8~~slightly by $0.1 million due to ~~successful exit strategies combined with~~ normal repayments ~~and fewer~~being slightly higher than additions to the ~~category due to overall improvement in economic conditions in our markets.~~category. (Please see Note 5, “Loans and the ~~Notes to the Consolidated Financial Statements~~Allowance for ~~additional discussion.~~Credit Losses”.)

Other real estate owned and repossessed assets decreased ~~$1.6~~$0.9 million from December 31, ~~2016~~2017 primarily due to continued efforts to liquidate ~~properties acquired from YCB, which totaled $3.0~~properties. The FTSB acquisition added $0.7 million onto the ~~acquisition date.~~June 30, 2018 other real estate and repossessed asset totals.

The following table presents past due and accruing loans, excludingnon-accrual and TDRs:


*(unaudited, dollars in thousands)*	June 30, 2017			December 31, 2016			June 30, 2018			December 31, 2017
Loans past due 90 days or more:
Commercial real estate - land and construction	$	—		$	—		$	172		$	—
Commercial real estate - improved property		808			318			250			243
Commercial and industrial		30			229			219			20
Residential real estate		1,472			1,922			255			1,113
Home equity		1,284			626			477			742
Consumer		616			644			508			608

Total loans past due 90 days or more		4,210			3,739			1,881			2,726

Loans past due 30 to 89 days:
Commercial real estate - land and construction		3,831			—			362			172
Commercial real estate - improved property		1,284			747			1,506			316
Commercial and industrial		1,073			1,522			1,003			721
Residential real estate		3,805			6,080			5,627			4,392
Home equity		2,789			2,949			2,306			2,281
Consumer		3,823			4,731			2,553			3,290

Total loans past due 30 to 89 days		16,605			16,029			13,357			11,172

Total 30 days or more	$	20,815		$	19,768		$	15,238		$	13,898

Loans past due 90 days or more and accruing to total portfolio loans		0.07	%		0.06	%		0.03	%		0.04	%
Loans past due30-89 days and accruing to total portfolio loans		0.26	%		0.26	%		0.20	%		0.18	%

Loans past due 30 days or more and accruing interest, excludingnon-accruals and TDRs, increased ~~$1.0~~$1.3 million or ~~5.3%~~9.6% from December 31, ~~2016.~~2017, primarily due to the FTSB acquisition which added $2.0 million. These loans continue to accrue interest because they are both well-secured and in the process of collection. The increase in the 30 to 89 days past due status was primarily ~~related~~due to ~~one~~a $1.4 million increase in the commercial real estate ~~customer in process of refinancing. Delinquency in all other loan categories decreased fromyear-end~~ ~~primarily due to successful collection efforts on delinquent YCB acquired loans,~~category and represented ~~0.26%~~0.20% of total loans at ~~both~~ June 30, ~~2017~~2018 and 0.18% at December 31, ~~2016, respectively.~~2017. Loans past due 90 days or more ~~increased $0.6~~decreased $0.8 million ~~from~~compared to December 31, ~~2016~~2017 and represented ~~0.07%~~0.03% of total loans at June 30, ~~2017~~2018, compared to ~~0.06%~~0.04% at December 31, ~~2016. The~~2017. These continued low levels of delinquency are the result of management’s continued focus on sound initial underwriting, timely collection of loans at their earliest stage of delinquency, stable unemployment and generally improved economic conditions.

The allowance for loan losses of $47.6 million represented 0.70% of total portfolio loans at June 30, ~~2017~~2018 compared to ~~0.70%~~0.71% as of December 31, ~~2016~~2017 and ~~0.84%~~0.70% as of June 30, ~~2016.~~2017. Included in the ratio are acquired ~~YCB and ESB~~FTSB loans (recorded at fair value at the date of acquisition of ~~$1.7 billion) and~~$448.3 million). No allowance has been recorded on the ~~related allowance on YCB and ESB~~FTSB acquired loans as of ~~$3.3 million at~~ June 30, ~~2017. Excluding these acquired loans and the related allowance results in a more comparable coverage ratio to prior periods.~~2018.

The allowance for loans individually-evaluated ~~was relatively unchanged compared to~~decreased from December 31, ~~2016.~~2017 to June 30, 2018 primarily due to a partialcharge-off on one individually-evaluated commercial credit of $0.4 million. The allowance for loans collectively-evaluated increased from December 31, 2017 to June 30, 2018 by $2.7 million.

The allowance for loan commitments of $0.6 million at June 30, ~~2017~~2018 was unchanged compared to December 31, ~~2016~~2017, and is included in other liabilities on the Consolidated Balance Sheets.

The allowance for credit losses by loan category, presented in Note 5, “Loans and the Allowance for Credit Losses” to the Consolidated Financial Statements, summarizes the impact of changes in various factors that affect the allowance for loan losses in each segment of the portfolio. The allowance for all segments is impacted by changes in loan balances, as well as changes in historical loss rates adjusted for qualitative factors such as economic ~~conditions.~~conditions and delinquencies. The CRE and C&I segments of the portfolio are also impacted by changes in the risk grading distribution of the portfolio as well as the migration of CRE loans from land and construction to improved property upon the completion of construction.

The loss migration rate by internal risk grade is the primary factor for establishing the allowance for all commercial ~~loans,~~loan categories, and the portfolio segment loss history is the primary factor for establishing the allowance for residential real estate, home equity and consumer loans. The categorization of loans asnon-performing is not as significant a factor as the loss migration rate by risk grade or the segment loss history, although certainnon-performing loans that carry specific reserves are also typically considered classified under the internal risk grading system. Criticized and classified loans at June 30, 2018 were ~~1.25%~~1.08% of total loans, improving from ~~1.53%~~1.25% at June 30, ~~2016.~~2017. Criticized and classified loans as a percent of total loans ~~improved~~decreased, as overall credit quality continued to improve, enabling certain loans to be upgraded while others have paid ~~down.~~down or paid off. Criticized and classified loans decreased $0.9 million from December 31, 2017 to $73.0 million at June 30, 2018, with the paydown and/or upgrade of several large CRE loans.

Table 13 summarizes the allocation of the allowance for credit losses to each category of the loan portfolio. The increase in the ~~allocation of the~~ allowance for ~~CRE—land and construction and C&I~~commercial loans from December 31, 2017 is primarily ~~driven by growth in these respective categories. The allowance for CRE—improved property declined despite 0.9% of~~due to loan growth in the CRE – land and construction category, ~~as historical charge-offs and loan downgrades continue to decline at a faster pace than growth in~~while the ~~category. The~~ overall allowance for retail loan categories was relatively unchanged.


*(unaudited, dollars in thousands)*	June 30, 2017		Percent of Total		December 31, 2016		Percent of Total		June 30, 2018		Percent of Total		December 31, 2017		Percent of Total
Allowance for loan losses:
Commercial real estate - land and construction	$	5,457		12.0	$	4,348		9.8	$	4,710		9.8	$	3,117		6.8
Commercial real estate - improved property		17,988		39.5		18,628		42.1		19,476		40.3		21,166		46.2
Commercial and industrial		9,234		20.3		8,412		19.0		11,534		23.9		9,414		20.5
Residential real estate		3,717		8.2		4,106		9.3		3,893		8.1		3,206		7.0
Home equity		3,746		8.2		3,422		7.7		4,158		8.6		4,497		9.8
Consumer		3,993		8.8		3,998		9.0		2,951		6.1		3,063		6.7
Deposit account overdrafts		774		1.7		760		1.8		916		1.9		821		1.6

Total allowance for loan losses	$	44,909		98.7	$	43,674		98.7	$	47,638		98.7	$	45,284		98.6

Allowance for loan commitments:
Commercial real estate - land and construction	$	165		0.4	$	151		0.4	$	163		0.3	$	119		0.3
Commercial real estate - improved property		18		0.0		17		0.0		18		0.0		26		0.1
Commercial and industrial		179		0.4		188		0.4		175		0.4		173		0.4
Residential real estate		10		0.0		9		0.0		9		0.0		7		0.0
Home equity		179		0.4		162		0.4		205		0.5		212		0.5
Consumer		46		0.1		44		0.1		37		0.1		37		0.1

Total allowance for loan commitments		597		1.3		571		1.3		607		1.3		574		1.4

Total allowance for credit losses	$	45,506		100.0	$	44,245		100.0	$	48,245		100.0	$	45,858		100.0

Although the allowance for credit losses is allocated as described in Table 13, the total allowance is available to absorb actual losses in any category of the loan portfolio. However, differences between management’s estimation of probable losses and actual incurred losses in subsequent periods for any category may necessitate future adjustments to the provision for loan losses applicable to the category. Management believes the allowance for credit losses is appropriate to absorb probable losses at June 30, ~~2017.~~2018.


*(unaudited, dollars in thousands)*	June 30, 2017		December 31, 2016		$ Change			% Change			June 30, 2018		December 31, 2017		$ Change		% Change
Deposits
Non-interest bearing demand	$	1,801,423	$	1,789,522	$	11,901			0.7		$	2,046,537	$	1,846,748	$	199,789		10.8
Interest bearing demand		1,625,011		1,546,890		78,121			5.1			1,809,140		1,625,015		184,125		11.3
Money market		1,005,184		995,477		9,707			1.0			1,051,043		1,024,856		26,187		2.6
Savings deposits		1,255,083		1,213,168		41,915			3.5			1,385,356		1,269,912		115,444		9.1
Certificates of deposit		1,385,772		1,495,822		(110,050	)		(7.4	)		1,376,528		1,277,057		99,471		7.8

Total deposits	$	7,072,473	$	7,040,879	$	31,594			0.4		$	7,668,604	$	7,043,588	$	625,016		8.9

Deposits, which represent WesBanco’s primary source of funds, are offered in various account forms at various rates through WesBanco’s ~~173~~177 financial centers. The FDIC insures deposits up to $250,000 per account.

Total deposits increased by ~~$31.6~~$625.0 million or ~~0.4%~~8.9% during the first six months of 2018 primarily due to the FTSB acquisition, which provided $586.4 million of additional deposits, while organic deposits increased $38.6 million or 0.5% from December 31, 2017. Interest bearing demand andnon-interest bearing demand deposits increased ~~5.1%~~11.3% and ~~0.7%~~10.8%, respectively, while savings and money market deposits increased ~~3.5%~~9.1% and ~~1.0%~~2.6%, ~~respectively. This~~respectively, due to the FTSB acquisition. Organic growth ~~is primarily attributable to~~of $197.8 million for categories of deposits excluding certificates of deposit were the result of marketing, customer incentives, focused retail and business strategies to obtain more account relationships and customers’ preferences for shorter-term maturities, coupled with deposits from bonus and royalty payments for Marcellus and Utica shale gas payments from energy companies in WesBanco’s southwestern Pennsylvania, eastern Ohio and northern West Virginia markets. ~~In addition, money~~Money market deposits were influenced ~~primarily~~ through WesBanco’s participation in the Insured Cash Sweep (ICS^��®) money market deposit program. ICS^® reciprocal balances totaled ~~$48.0~~$72.6 million at June 30, ~~2017~~2018 compared to ~~$5.7~~$65.9 million at December 31, ~~2016.~~2017.

Certificates of deposit ~~decreased $110.1~~increased $99.5 million primarily due ~~primarily~~ to the ~~effects~~FTSB acquisition, which provided $262.9 million in additional certificates of deposit, of which $206.3 million remain as of June 30, 2018, while organic deposits decreased by 12.8%. The organic deposits decrease was affected by an overall corporate strategy designed to increase and remix retail deposit relationships and reducing single service customers with a focus on overall products that can be offered at a lower cost to WesBanco. The decline was also impacted by lower than competitor offered rates on certain maturing certificates of deposit ~~earlier in the period~~ and customer preferences for othernon-maturity deposit types. WesBanco does not generally solicit brokered or other depositsout-of-market or over the internet, but does participate in the Certificate of Deposit Account Registry Services (CDARS^®) program and the ~~ICS~~Insured Cash Sweep (ICS^®) money market deposit program. CDARS^® balances totaled ~~$124.8~~$78.4 million in outstanding balances at June 30, ~~2017,~~2018, of which ~~$92.3~~$45.5 million representedone-way buys, compared to ~~$135.2~~$105.0 million in total outstanding balances at December 31, ~~2016,~~2017, of which ~~$100.1~~$72.7 million representedone-way buys. Certificates of deposit greater than $250,000 were approximately ~~$220.8~~$333.7 million at June 30, ~~2017~~2018 compared to ~~$219.3~~$216.4 million at December 31, ~~2016.~~2017. Certificates of deposit of $100,000 or more were approximately ~~$635.5~~$695.0 million at June 30, ~~2017~~2018 compared to ~~$681.5~~$581.6 million at December 31, ~~2016.~~2017. Certificates of deposit increased as of June 30, 2018 compared to December 31, 2017 due to the FTSB acquisition. Certificates of deposit totaling approximately ~~$810.9~~$791.3 million at June 30, ~~2017~~2018 with a cost of ~~0.59%~~0.91% are scheduled to mature within the next 12 months. WesBanco intends to continue to focus on its core deposit strategies and improving its overall mix of transaction accounts to total ~~deposits, and~~deposits. From time to time, the Bank may offer special promotions or match competitor rates on certain certificates of deposit maturities ~~of CD’s~~ and ~~other~~ savings products based on competition, sales strategies, liquidity needs and wholesale borrowing costs.


*(unaudited, dollars in thousands)*	June 30, 2017		December 31, 2016		$ Change			% Change			June 30, 2018		December 31, 2017		$ Change		% Change
Federal Home Loan Bank Borrowings	$	1,021,592	$	968,946	$	52,646			5.4		$	1,248,406	$	948,203	$	300,203		31.7
Other short-term borrowings		167,671		199,376		(31,705	)		(15.9	)		258,067		184,805		73,262		39.6
Subordinated debt and junior subordinated debt		164,228		163,598		630			0.4			165,420		164,327		1,093		0.7

Total	$	1,353,491	$	1,331,920	$	21,571			1.6		$	1,671,893	$	1,297,335	$	374,558		28.9

~~Borrowings~~While borrowings are a ~~less~~ significant source of funding for WesBanco, they are less significant as compared to total ~~deposits, totaling 13.7% of total assets.~~deposits. During the first six months of ~~2017, WesBanco reduced other short-term borrowings and borrowed approximately $60.0 million of~~2018, FHLB borrowings increased $300.2 million, as $575.0 million in advances, coupled with ~~longer-term maturities.~~$52.3 million in advances from the FTSB acquisition, offset $327.1 million in maturities and other principal pay downs. In addition, WesBanco extended the maturities of approximately ~~$230.0~~$320.0 million of maturing FHLB borrowings atin the first six months of 2018 with an average maturing cost of ~~1.57% versus~~1.35%, at a current ~~short-term~~average rate of 2.62% and an average term of 2.2 years. WesBanco acquired a $25.0 millionoff-balance sheet letter of credit in the FTSB transaction. The letter of credit was issued by the FHLB ~~rates approximating 1.10% - 1.20%.~~and secures the deposits of a public deposits customer.

Other short-term borrowings, which consist ~~primarily~~ of securities sold under agreements to repurchase and federal funds purchased at June 30, ~~2017, and~~2018, but may also include notes payable, were ~~$167.7~~$258.1 million at June 30, ~~2017~~2018 compared to ~~$199.4~~$184.8 million at December 31, ~~2016.~~2017. The ~~decrease~~increase is primarily due to a ~~$25.5~~$76.3 million ~~decrease~~increase in securities sold under agreements to repurchase, including $9.2 million acquired from FTSB, which was partially offset by the repayments of $3.0 million in federal funds purchased outstanding at December 31, 2017.

Subordinated debt and junior subordinated debt were $165.4 million at June 30, 2018 compared to $164.3 million at December 31, 2017. The increase is primarily due to $9.3 million in junior subordinated debt from the FTSB acquisition, which was partially offset by the redemption of $8.2 million in junior subordinated debt in June 2018 from a ~~$6.2 million decrease in repurchase agreements.~~ prior acquisition.

WesBanco has a revolving line of credit, which is a senior obligation of the parent company, with another financial institution. This line of credit, which accrues interest at an adjusted LIBOR rate, provides for aggregate unsecured borrowings of up to $25.0 million. There was no outstanding balance at June 30, ~~2017~~2018 or December 31, ~~2016.~~

~~Subordinated debt~~2017. Rates have generally increased over the past year on all borrowing types due to the federal funds and ~~junior subordinated debt consisted of $25.9 million in subordinated debentures and $138.3 million in junior subordinated debt at June 30,~~LIBOR rate increases that have occurred since early 2017. The subordinated debt was issued by the former Your Community Bank and has a fixed rate of 6.25% through the call date of December 15, 2020 at which time the interest rate converts to a variable rate equal to three-month LIBOR plus 459 basis points. The subordinated debt matures on December 15, 2025 and is considered Tier 2 regulatory capital for both WesBanco Bank and WesBanco, Inc. The junior subordinated debt has either been issued by trusts formed by WesBanco or assumed in acquisitions. At June 30, 2017, junior subordinated debt totaling $129.8 million had variable interest rates based on three-month LIBOR ranging from 2.85% to 4.40%, and junior subordinated debt totaling $8.5 million had a fixed rate of 8.00%. The junior subordinated debt matures at various dates from June 2033 through June 2038 and is considered Tier 1 regulatory capital for WesBanco, Inc. under current regulatory guidelines.

WesBanco enters into financial instruments withoff-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, letters of credit, loans approved but not closed, overdraft limits and contingent obligations to purchase loans funded by other entities. Since many of these commitments expire unused or partially used, these commitments may not reflect future cash requirements. Please refer to Note 9,11, “Commitments and Contingent Liabilities,” of the Consolidated Financial Statements and the “Loans and Credit Risk” section of this MD&A for additional information.

Shareholders’ equity ~~was~~increased $128.8 million or 9.2% from $1.4 ~~billion at June 30, 2017 compared to $1.3~~ billion at December 31, ~~2016.~~2017. The increase ~~resulted~~was due primarily ~~from~~to $107.3 million of common stock issued in the FTSB acquisition, coupled with net income during the currentsix-month period of ~~$52.2~~$66.7 million, ~~and a $5.0 million decrease in other comprehensive loss,~~ which ~~were~~was partially offset by the declaration of common shareholder dividends totaling ~~$22.9~~$26.3 million and $21.9 million in additional other comprehensive loss for the six months ended June 30, ~~2017.~~2018. The other comprehensive loss was due primarily to an unrealized loss in the securities portfolio, which was partially offset by an unrealized gain in the defined benefit pension plan. WesBanco also increased its quarterly dividend rate to ~~$0.26~~$0.29 per share in February, representing an ~~8.3%~~11.5% increase over the prior quarterly rate and a cumulative ~~86%~~107% increase ~~over the lasttwenty-six~~ ~~quarters.~~since 2010.

~~Under the current share repurchase plan,~~ WesBanco purchased ~~12,987~~14,414 shares during thesix-month period ended June 30, ~~2017~~2018 under the current share repurchase plans. The shares were repurchased from employees for the payment of withholding taxes to facilitate ~~the vesting of restricted stock.~~stock compensation transactions. At June 30, ~~2017,~~2018, the remaining shares authorized to be purchased under the current repurchase plans totaled ~~1,107,320~~1,092,883 shares.

On February ~~17, 2017,~~22, 2018, WesBanco granted 12,000 Total Shareholder Return Plan (“TSR”) shares for the performance period beginning January 1, ~~2017~~2018 and ending December 31, ~~2019~~2020 to certain executives. The award is determined at the end of the three-year period if the TSR of WesBanco common stock is equal to or greater than the 50^th percentile of the TSR of the peer group. The number of shares to be earned by the participant shall be 200% of the grant-date award if the TSR of WesBanco common stock is equal to or greater than the 75^th percentile of the TSR of the peer group. Upon achieving the market-based metric, shares determined to be earned by the participant become ~~service-based~~time-based and vest in three equal annual installments.

On May 16, ~~2017,~~2018, WesBanco granted ~~117,550~~117,600 stock options to selected officers at an exercise price of ~~$38.88.~~$45.65. These options are service-based and vest 50% at December 31, ~~2017~~2018 and 50% at December 31, ~~2018.~~2019. On the same date, WesBanco also issued ~~70,321~~70,151 shares of time-based restricted stock to selected officers and ~~9,003~~8,081 shares of performance-based restricted stock to selected officers. In addition on April 5, 2018, WesBanco issued 9,465 shares of time-based restricted stock to certain former officers of FTSB who became officers of WesBanco upon the FTSB acquisition closing. The time-based restricted shares are service-based and cliff-vest 36 months from the date of grant. The performance-based restricted shares have a three-year performance period, beginning January 1, ~~2018,~~2019, based on WesBanco’s return on average assets and return on average tangible common equity measured for each year, compared to a national peer group of peer financial institutions with total assets between approximately $9 billion and $15 billion. Earned performance-based restricted shares are also subject to additional service-based vesting with 50% vesting on May 16, ~~2021~~2022 after the completion of the three-year performance period and the final 50% vesting on May 16, ~~2022.~~2023.

Regulatory guidelines require bank holding companies and commercial banks to maintain certain minimum capital ratios and define companies as “well capitalized” that sufficiently exceed the minimum ratios. At June 30, ~~2017,~~2018, regulatory capital levels for both the Bank and WesBanco were substantially greater than the minimum amounts needed to be considered “well capitalized” under the regulations. There are various legal limitations under federal and state laws that limit the payment of dividends from the Bank to WesBanco. As of June 30, ~~2017,~~2018, under FDIC regulations, WesBanco could receive, without prior regulatory approval, a dividend of approximately ~~$50.3~~$67.4 million from the Bank. WesBanco intends to continue to improve its consolidated and Bank capital ratios as necessary over time, primarily from retaining a majority of its increasing earnings.

The following table summarizes risk-based capital amounts and ratios for WesBanco and the Bank for the periods indicated:


							June 30, 2017							December 31, 2016													June 30, 2018							December 31, 2017
*(unaudited, dollars in thousands)*	Minimum Value⁽¹⁾			Well Capitalized ⁽²⁾			Amount		Ratio			Minimum Amount ⁽¹⁾		Amount		Ratio			Minimum Amount ⁽¹⁾		Minimum Value⁽¹⁾			Well Capitalized ⁽²⁾			Amount		Ratio			Minimum Amount⁽¹⁾		Amount		Ratio			Minimum Amount⁽¹⁾
WesBanco, Inc.
Tier 1 leverage		4.00	%		5.00	%	$	933,005		10.09	%	$	369,815	$	901,873		9.81	%	$	367,843		4.00	%		5.00	%	$	1,052,707		10.21	%	$	412,514	$	970,425		10.39	%	$	373,566
Common equity Tier 1		4.50	%		6.50	%		799,185		11.44	%		314,274		773,306		11.28	%		308,462		4.50	%		6.50	%		913,707		12.38	%		332,159		834,554		12.14	%		309,298
Tier 1 capital to risk-weighted assets		6.00	%		8.00	%		933,005		13.36	%		419,033		901,873		13.16	%		411,283		6.00	%		8.00	%		1,052,707		14.26	%		442,878		970,425		14.12	%		412,397
Total capital to risk-weighted assets		8.00	%		10.00	%		1,004,203		14.38	%		558,710		971,762		14.18	%		548,378		8.00	%		10.00	%		1,126,165		15.26	%		590,504		1,042,124		15.16	%		549,863
WesBanco Bank, Inc.
Tier 1 leverage		4.00	%		5.00	%	$	845,267		9.16	%	$	369,043	$	827,173		9.02	%	$	366,903		4.00	%		5.00	%	$	931,325		9.05	%	$	411,450	$	869,227		9.32	%	$	372,900
Common equity Tier 1		4.50	%		6.50	%		845,267		12.13	%		313,594		827,173		12.10	%		307,728		4.50	%		6.50	%		931,325		12.64	%		331,641		869,227		12.66	%		308,900
Tier 1 capital to risk-weighted assets		6.00	%		8.00	%		845,267		12.13	%		418,125		827,173		12.10	%		410,305		6.00	%		8.00	%		931,325		12.64	%		442,188		869,227		12.66	%		411,866
Total capital to risk-weighted assets		8.00	%		10.00	%		915,994		13.14	%		557,500		896,598		13.11	%		547,073		8.00	%		10.00	%		1,004,784		13.63	%		589,584		940,303		13.70	%		549,155

Liquidity is defined as a financial institution’s capacity to meet its cash and collateral obligations at a reasonable cost. Liquidity risk is the risk that an institution’s financial condition or overall safety and soundness is adversely affected by an inability, or perceived inability, to meet its obligations. An institution’s obligations, and the funding sources to meet them, depend significantly on its business mix, balance sheet structure and the cash flows of itson- andoff-balance sheet obligations. Institutions confront various internal and external situations that can give rise to increased liquidity risk including funding mismatches, market constraints on funding sources, contingent liquidity events, changes in economic conditions, and exposure to credit, market, operation, legal and reputation risk. WesBanco actively manages liquidity risk through its ability to provide adequate funds to meet changes in loan demand, unexpected outflows in deposits and other borrowings as well as to take advantage of market opportunities and meet operating cash needs. This is accomplished by maintaining liquid assets in the form of securities, sufficient borrowing capacity and a stable core deposit base. Liquidity is centrally monitored by WesBanco’s Asset/Liability Committee (“ALCO”).

WesBanco determines the degree of required liquidity by the relationship of total holdings of liquid assets to the possible need for funds to meet unexpected deposit losses and/or loan demands. The ability to quickly convert assets to cash at a minimal loss is a primary function of WesBanco’s investment portfolio management. WesBanco believes its cash flow from the loan portfolio, the investment portfolio and other sources adequately meet its liquidity requirements. WesBanco’s net loans to assets ratio was ~~64.3%~~61.6% at June 30, ~~2017~~2018 and deposit balances funded ~~71.6%~~70.1% of assets.

The following table lists the sources of liquidity from assets at June 30, ~~2017~~2018 expected within the next year:


*(unaudited, in thousands)*
Cash and cash equivalents	$	110,695	$	155,559
Securities with a maturity date within the next year and callable securities		140,225		229,784
Projected payments and prepayments on mortgage-backed securities and collateralized mortgage obligations (1)		201,783		230,246
Loans held for sale		21,677		12,053
Accruing loans scheduled to mature		855,668		940,386
Normal loan repayments		1,554,668		1,187,847

Total sources of liquidity expected within the next year	$	2,884,716	$	2,755,875

Deposit flows are another principal factor affecting overall WesBanco liquidity. Deposits totaled ~~$7.1~~$7.7 billion at June 30, ~~2017.~~2018. Deposit flows are impacted by current interest rates, products and rates offered by WesBanco versus various forms of competition, as well as customer behavior. Certificates of deposit scheduled to mature within one year totaled ~~$810.9~~$791.3 million at June 30, ~~2017,~~2018, which includes jumbo regular certificates of deposit totaling ~~$313.0~~$376.1 million with a weighted-average cost of ~~0.73%~~1.16%, and jumbo CDARS^® deposits of ~~$82.6~~$49.3 million with a weighted-average cost of ~~0.88%~~1.23%.

WesBanco maintains a line of credit with the FHLB as an additional funding source. Available credit with the FHLB at June 30, ~~2017~~2018 and December 31, ~~2016~~2017 approximated ~~$1.6~~$1.7 billion and ~~$1.7~~$1.8 billion, respectively. The FHLB requires securities to be specifically pledged to the FHLB and maintained in a FHLB-approved custodial arrangement if the member wishes to include such securities in the maximum borrowing capacity calculation. WesBanco has elected not to specifically pledge to the FHLB otherwise unpledged securities. At June 30, ~~2017,~~2018, the Bank had unpledgedavailable-for-sale securities with an amortized cost of ~~$294.4 million. A portion~~$509.5 million, representing 28.4% of ~~these~~that portfolio. These securities could be sold for additional liquidity, or ~~such securities~~ could be pledged to secure additional FHLB borrowings. Available liquidity through the sale of investment securities is ~~currently~~ limited to those that are designated as ~~only approximately 25% of the~~available-for-sale ~~portfolio is~~and are unpledged, due to the pledging agreements that WesBanco has with their public deposit customers. Public deposit balances have increased significantly through the ESB and YCB acquisitions ofin the past ~~two~~three years. WesBanco’sheld-to-maturity portfolio currently contains ~~$629.0~~$677.2 million of unpledged securities. However, most of the balance represents municipal bonds, which can only be pledged in limited circumstances. Unless in compliance with certain criteria, these securities cannot be sold without tainting the remainder of theheld-to-maturity portfolio. If tainting occurs, all remaining securities with theheld-to-maturity designation would be required to gomove toavailable-for-sale, and theheld-to-maturity designation would not be available to WesBanco for ~~several years.~~some time.

WesBanco participates in the Federal Reserve Bank’sBorrower-in-Custody Program (“BIC”) whereby WesBanco pledges certain consumer loans as collateral for borrowings. At June 30, ~~2017,~~2018, WesBanco had a BIC line of credit totaling ~~$208.1~~$164.2 million, none of which was outstanding. Alternative funding sources may include the utilization of existing overnight lines of credit with third party banks totaling $285.0 million, of which ~~$32.5~~$22.0 million was outstanding at June 30, ~~2017,~~2018, along with seeking other lines of credit, borrowings under repurchase agreement lines, increasing deposit rates to attract additional funds, accessing brokered deposits, or selling securitiesavailable-for-sale or certain types of loans.

Other short-term borrowings of ~~$167.7~~$258.1 million at June 30, ~~2017~~2018 consisted of callable repurchase agreements, ~~and~~ overnight sweep checking accounts for large commercial customers, and federal funds purchased. There has not been a significant fluctuation in the average deposit balances of the overnight sweep checking accounts during ~~2017.~~2018. The overnight sweep checking accounts require U.S. Government securities to be pledged equal to or greater than the average deposit balance in the related customer accounts.

The principal sources of parent company liquidity are dividends from the Bank, ~~$64.1~~$87.9 million in cash and investments on hand, and a $25.0 million revolving line of credit with another bank, which did not have an outstanding balance at June 30, ~~2017.~~2018. WesBanco is in compliance with all loan covenants. There are various legal limitations under federal and state laws that limit the payment of dividends from the Bank to the parent company. As of June 30, ~~2017,~~2018, under FDIC and State of West Virginia regulations, WesBanco could receive, without prior regulatory approval, dividends of approximately ~~$50.3~~$67.4 million from the Bank. Management believes these are appropriate levels of cash for WesBanco given the current environment. Management continuously monitors the adequacy of parent company cash levels and sources of liquidity through the use of metrics that relate current cash levels to historical and forecasted cash inflows and outflows.

WesBanco had outstanding commitments to extend credit in the ordinary course of business approximating ~~$1.9~~$2.1 billion and $1.8 billion at ~~both~~ June 30, ~~2017~~2018 and December 31, ~~2016.~~2017, respectively. On a historical basis, only a small portion of these commitments will result in an outflow of funds. Please refer to Note 9,11, “Commitments and Contingent Liabilities,” of the Consolidated Financial Statements and the “Loans and Loan Commitments” section of this MD&A for additional information.

Federal financial regulatory agencies previously have issued guidance to provide for sound practices for managing funding and liquidity risk and strengthening liquidity risk management practices. WesBanco maintains a comprehensive management process for identifying, measuring, monitoring, and controlling liquidity risk, which is fully integrated into its risk management process. Management believes WesBanco has sufficient current liquidity to meet current obligations to borrowers, depositors and others as of June 30, ~~2017,~~2018 and that WesBanco’s current liquidity risk management policies and procedures adequately address this guidance.

The disclosures set forth in this item are qualified by the section captioned “Forward-Looking Statements” included in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report.

The primary objective of WesBanco’s ALCO is to maximize net interest income within established policy parameters. This objective is accomplished through the management of balance sheet composition, market risk exposures arising from changing economic conditions and liquidity risk.

Market risk is defined as the risk of loss due to adverse changes in the fair value of financial instruments resulting from fluctuations in interest rates and equity prices. Management considers interest rate risk to be WesBanco’s most significant market risk. Interest rate risk is the exposure to adverse changes in net interest income due to changes in interest rates. The relative consistency of WesBanco’s net interest income is largely dependent on effective management of interest rate risk. As interest rates change in the market, rates earned on interest rate sensitive assets and rates paid on interest rate sensitive liabilities do not necessarily move concurrently. Differing rate sensitivities may arise because fixed rate assets and liabilities may not have the same maturities, or because variable rate assets and liabilities differ in the timing and/or the percentage of rate changes.

WesBanco’s ALCO is a Board-level committee with ~~both~~ Board and ~~senior~~executive management representation, including the Chief Executive Officer, ~~the~~ Chief Financial Officer, ~~the~~ Chief Risk Management Officer and ~~the~~ Senior Treasury Officer. It ~~monitors~~is responsible for monitoring and ~~manages~~managing interest rate risk within ~~Board- approved~~Board-approved policy limits. Interest rate risk is monitored ~~primarily~~ through the use of an earnings sensitivity simulation model and an economicvalue-at-risk model, ~~to measure~~measuring the fair value of net equity. These models are highly dependent on various assumptions, which change regularly as the balance sheet and market interest rates change. The key assumptions and strategies employed are analyzed and reviewed quarterly by the ALCO, while appropriate documentation is ~~maintained in meeting minutes and treasury department files.~~maintained.

The earnings sensitivity simulation model projects changes in net interest income resulting from the effect of changes in interest rates. Forecasting changes in net interest income requires management to make certain assumptions regarding loan and security prepayment rates, security call dates, ~~adjustments~~changes to variousnon-maturity deposit product ~~rates, or “betas”,~~betas, andnon-maturity deposit decay rates, which may not necessarily reflect the manner in which actual cash flows, yields, and costs respond to changes in market interest rates. Assumptions used are based ~~primarily~~ on ~~both~~ historical experience, ~~and~~ current market rates and economic forecasts, and are periodically back-tested and reviewed by third-party consultants. Security portfolio maturities and prepayments are assumed to be reinvested in similar instruments and callable/prepayable security forecasts are adjusted at varying levels of interest rates. While management believes such assumptions to be reasonable, there can be no assurance that assumed prepayment rates, callable security forecasts and~~non-maturity~~ ~~deposit product behavior assumptions will approximate actual future results. Moreover, the~~The net interest income sensitivity ~~chart~~results presented in Table 1, “Net Interest Income Sensitivity,” assumes that the balance sheet composition of interest sensitive assets and liabilities existing at the end of the period remains constant over the period being measured, and also assumes that a particular change in interest rates is reflected uniformly across the yield curve, regardless of the duration of the maturity orre-pricing of specific assets and liabilities. Since the assumptions used in the model relative to changes in interest rates are uncertain, the simulation analysis may not be indicative of actual results. In addition, ~~the~~this analysis ~~may~~does not consider all actions that management ~~could~~might employ in response to changes in interest rates ~~and various~~as well as earning asset and costing liability balances.

Management is aware of the significant effect inflation or deflation has upon interest rates and ultimately upon financial performance. WesBanco’s ability to cope with inflation or deflation is best determined by analyzing its capability to respond to changing market interest rates, as well as its ability to manage the various elements ofnon-interest income and expense during periods of increasing or decreasing inflation or deflation. WesBanco monitors the level and mix of interest-rate sensitive assets and liabilities through ALCO in order to reduce the impact of inflation or deflation on net interest income. Management also controls the effects of inflation or deflation by conducting periodic reviews of the prices and terms of its various products and services, both in terms of the costs to offer the services as well as outside market influences upon such pricing, by introducing new products and services or reducing the availability of existing products and services, and by controlling overhead expenses.

Interest rate risk policy limits are determined by measuring the anticipated change in net interest income over a twelve-month period, assuming an immediate and sustained market interest rate increases and decreases of 100 ~~200, 300 and~~- 400 basis ~~point increase or decrease in market interest rates~~points across the entire yield curve, compared to a stable rate environment or base model. WesBanco’s current policy limits this exposure for the noted interest rate changes to a reduction of between 10%~~, 12.5%, 15% and~~ - 20% or less ~~respectively,~~ of net interest income from the stable rate base model over a twelve-month period. The table below shows WesBanco’s interest rate sensitivity at June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, assuming the above-noted interest rate increases as compared to a base model. ~~Due to~~In the current lower interest rate environment, particularly for short-term rates, the 200 and 300 basis point decreasing change are not shown due to the unrealistic nature of results associated with short-term negative ~~interest~~ rates.


Immediate Change in Interest Rates (basis points)	Percentage Change in Net Interest Income from Base over One Year		ALCO Guidelines	Percentage Change in Net Interest Income from Base over One Year		ALCO Guidelines
Immediate Change in Interest Rates (basis points)	June 30, 2017	December 31, 2016	ALCO Guidelines	June 30, 2018	December 31, 2017	ALCO Guidelines
+400	12.0%	4.5%	(20.0%)	7.7%	8.3%	(20.0%)
+300	9.7%	4.7%	(15.0%)	6.0%	6.2%	(15.0%)
+200	6.8%	4.6%	(12.5%)	4.0%	4.0%	(12.5%)
+100	4.0%	3.1%	(10.0%)	2.2%	2.4%	(10.0%)
-100	(4.2%)	(2.3%)	(10.0%)	(2.3%)	(3.0%)	(10.0%)

As per the table above, the earnings sensitivity simulation model at June 30, ~~2017~~2018 currently projects that net interest income for the next twelve-month period would decrease by ~~4.2%~~2.3% if interest rates were to fall immediately by 100 basis points, compared to a decrease of ~~2.3%~~3.0% for the same scenario as of December 31, ~~2016.~~2017.

For rising rate scenarios, net interest income would increase by ~~4.0%, 6.8%, 9.7% and 12.0%~~between 2.2% - 7.7% if rates were to increase by between 100 ~~200, 300 and~~- 400 basis points ~~respectively,~~ as of June 30, ~~2017,~~2018, compared to increases of ~~3.1%, 4.6%, 4.7% and 4.5%~~between 2.4% - 8.3% in a 100 ~~200, 300 and~~- 400 basis point increasing rate environment as of December 31, ~~2016.~~2017.

Management also utilizes a “Most Likely” forecast scenario to project net interest income over a rollingtwo-year time period. This forecast is updated and reviewed quarterly, incorporating updated assumptions into the model such as estimated loan and deposit growth, balance sheetre-mixing strategies, changes in base forecasted rates for various maturities, competitive market spreads for various products and other assumptions. Such modeling helps to predict changes in forecasted outcomes and necessary adjustments to the plan to achieve management’s earnings goals.

The balance sheet shows ~~greater~~slightly lower asset sensitivity as of June 30, ~~2017,~~2018, as compared to December 31, ~~2016,~~2017, with differences resulting from changes in the mix of, and growth in various earning assets and costing liabilities, as well as ~~recent~~ adjustments infor various modeling assumptions such as deposit beta rates, decay rates fornon-maturity deposits and loan prepayment speeds. A recent third-party study of the Company’s own historical betas, decay rates and prepayment speeds in various interest rate environments was completed, and the results were used to replace general industry data in prior evaluations, resulting in a portion of the increased asset sensitivity. WhileGenerally, deposit betas have ~~been~~ increased ~~from those used~~over time in ~~prior periods,~~the model, while loan prepayment speeds ~~were~~have also increased to reflect ~~our own~~various loan ~~balances’~~classifications’ propensity to prepay over time. ~~The net impact was increased asset sensitivity in combination with the aforementioned balance sheet changes experienced fromyear-end.~~ ~~Overall~~Management believes that overall asset sensitivity innon-parallel rising rate scenarios ~~with shifting yield curve assumptions~~ may be somewhat neutralized due to slower prepayment speeds, ~~slower~~rate floors, lower than forecasted increases to loan yields, ~~for competitive reasons, existing quotes on previously committed loans,~~ extension risk associated with residential mortgages and ~~mortgage-backed~~mortgage-related securities, and other earning asset and costing liability differences versus currently modeled assumptions. ~~In addition, variable rate~~Commercial loans with floors currently average 4.19% on approximately $1.2 billion, or 28% of total commercial loans ~~with rate floors averaging 4.10% approximated $1.3 billion~~ at June 30, ~~2017,~~2018, as compared to $1.2 billion or 30% of commercial loans ~~as compared to $1.3 billion~~at December 31, 2017. Approximately 36% or ~~32% of commercial loans atyear-end.~~ ~~Approximately 48% or $602.7~~$450.6 million of these loans are currently priced at their floor, as compared to ~~53%~~45% or ~~$671.9~~$552.6 million at December 31, ~~2016.~~2017. In a less than 100 basis point rising rate environment, these loans may not adjust as rapidly from their current floor level as compared to loans without floors. As a result of the December 2016, March 2017 and June 2017 federal funds rate increases affecting short-term market rates such as one and three month LIBOR (an index used frequently in the setting of commercial loan rates, fixed rate loan spreads, and~~back-to-back~~ ~~loan swaps for certain commercial loan customers), more commercial loans with floors should experience a rate increase in a rising rate environment of 100 basis points or more.~~

Given the interest rate environment and flatter yield curve for much of 2016 affecting the repricing of loans and investments, WesBanco previously experienced a declining or flat net interest margin, with net interest income dependent upon both loan growth and asset~~re-mix~~ strategies. It was expected that the base case net interest margin would somewhat decrease without loan growth. After the acquisition in 2016 of YCB and with three recent federal funds rate increases, theThe net interest margin has ~~grown~~decreased by 14two basis points for the three and six month periods ended June 30, 2018 compared to the same periods last year, as the~~pre-acquisition~~tax-exempt ~~levels due~~securities portfoliotax-equivalent rate adjustment from 35% to 21% caused a reduction in the overall net interest margin by six basis points. New securities purchased at current rates helped to offset this reduction. In addition, higher ~~yielding loans~~non-interest bearing demand deposits and limited increases in other deposit categories resulted in some margin improvement that limited the decrease from ~~YCB, loan mix and purchase accounting accretion. Further~~thetax-equivalency calculation. The opportunity for margin expansion ~~would be~~is dependent on additional federal funds increases and ~~other market rate/yield curve increases over~~ the ~~remainder~~shape of the ~~year,~~yield curve, in addition to continued execution of our business strategy to ~~remix investment securities runoff into loans~~grow certain loan categories and remixing higher cost ~~wholesale~~ borrowings and CDs into lower ~~costing~~cost transaction ~~accounts. Net~~accounts, while controlling transaction account betas as rates rise. In addition, net purchase accounting accretion, which was 12 b.p. in the second quarter and 8 b.p.year-to-date, influenced positively by the acquisition of FTSB on April 5, 2018, is expected to decrease slightly throughout ~~2017, which should be mostly offset by loan growth and by~~ the ~~asset sensitivity~~remainder of 2018 for prior acquisitions but increase somewhat due to the ~~balance sheet~~acquisition of FFKT expected in ~~a rising rate scenario.~~the third quarter. Management currently anticipates that one or two additional short-term federal funds rate ~~increase~~increases may occur ~~during~~by the ~~remainder~~end of ~~2017, and potentially two more in~~ 2018, ~~relatively~~ consistent with ~~general market~~Federal Reserve and consensus economist expectations. Delays in implementing further rate increases, ~~for an asset-sensitive balance sheet or~~ increases to deposit betas beyond our current modeling assumptions ~~for existing accounts typically would~~or adjustments to the mix of earning assets and costing liabilities may have a negative impact on management’s estimates of the future direction and level of the net interest margin.

Maturities and repricing of higher-costing certificates of deposit in prior years has had the beneficial impact of mitigating compression from lower loan spreads in a competitive loan environment, combined with organic loan growth. However, with current CDs costing an average of 0.71%, this factor does not improve the net interest margin as CDs mature and reprice, as new offering rates are generally higher than current maturities’ rates. While many Bank customers over the past few years have moved their maturing CDcertificates of deposit balances to lower-costing transaction accounts as well as ~~certain~~intonon-deposit products, it may be anticipated that as rates rise, a portion of these lower-cost transaction account balances may ~~move~~migrate to higher-costing ~~CDs~~certificates of deposit or the higher-priced tiers of money market ~~accounts as short-term rates continue to increase. Prior~~products. Runoff of certificate of deposit balances, both organically and ~~current period CD runoff~~ from ~~former single service~~prior acquisitions, which has included reducing certain single-service deposit customers ~~at ESB and YCB and our own retail focus~~thru an emphasis on ~~customers with multiple relationships versus single service CD customers~~relationship pricing has been replaced with FHLB and other short-term borrowings. Certificates of deposit totaling approximately ~~$810.9~~$791.3 million mature within the next year at an average cost of ~~0.59%~~0.91%. ~~Approximately $230 million of short-term maturing FHLB~~Maturing borrowings in the first half of 2017 were replaced with higher cost, medium-term borrowings, which strategy was intended to improve asset sensitivity and certain short-term liquidity measures. Additional maturing borrowings over the remainder of the year may ~~also~~ be lengthened at a ~~somewhat~~ higher cost ~~to continue to improve various short-term liquidity ratios that management monitors, and in anticipation of future rate increases.~~than the maturing borrowings’ average rate. In addition, with the recent acquisition of FTSB and the pending acquisition of FFKT, management is ~~currently~~no longer intent on controlling the ~~total~~ size of the balance sheet ~~without limiting loan growth,~~ in order to remain under $10 billion in total assets, ~~through~~as it did in 2017. Increased first quarter investment purchases, and the ~~remainder~~acquisition of ~~2017 and into~~FTSB in the second quarter, resulted in total assets of $10.9 billion at June 30, 2018.

The Bank has significant additional borrowing capacity with the FHLB of Pittsburgh, the Federal Reserve Bank of Cleveland, and ~~various~~ correspondent banks, and may utilize these funding sources or an interest rate swap ~~strategy,~~strategies as necessary to lengthen liabilities, to help offset mismatches in various asset maturities, and manage liquidity. CDARS^® and ICS^® deposits also ~~continue to~~may be used ~~to lengthen maturities in certificates of deposit and~~ for similar purposes as well as for certain customers seeking higher-yielding instruments ~~and/~~or ~~to maintain their total~~maintaining deposit levels below individual FDIC insurance limits.

~~Current~~ Significant balance sheet strategies to ~~manage~~assist in managing the net interest margin in the ~~expected~~current rate environment include:

As an alternative to the immediate rate shock analysis, the ALCO monitors interest rate risk by ramping or increasing interest rates 200 basis points gradually over a twelve-month period. WesBanco’s current policy limits this exposure to a change of minus 10% in net interest income from the base model for a twelve-month period and for an extended two year rate ramp of 400 basis points. Management believes that the ramping analysis reflects a more realistic movement of interest rates, whereas the immediate rate shock reflects a less likely scenario. The simulation model at June 30, 2017 using the 200 basis point increasing rate ramp analysis, projects that net interest income would increase 3.4% over the next twelve months, compared to a 3.2% increase at December 31, 2016. For the first twelve months of a 400 basis point rate ramp over two years, the increase in net interest income would be 3.8% in year one as compared to the base, and 12.1% in year two when compared to year two’s base. In addition, management ~~utilizes a most likely forecast scenario to forecast net interest income over a rolling two year time frame. This forecast is updated and reviewed quarterly, incorporating current budget orre-forecast~~ ~~assumptions into the model such as estimated loan and deposit growth, asset and liabilityre-mixing,~~ competitive market rates and spreads for various products, marketing promotions and other assumptions. Such modeling helps to predict changes in forecasted outcomes and necessary adjustments to the plan to achieve management’s earnings goals.

WesBanco also periodically measures the economic value of equity, which is defined as the market value of tangible equity in various rate scenarios. At June 30, ~~2017,~~2018, the market value of tangible equity as a percent of base in a 200 basis point rising rate environment indicates ~~an increase~~a decrease of ~~2.9%~~8.5%, compared to ~~an increase~~a decrease of ~~6.7%~~1.8% at December 31, ~~2016.~~2017. In a 100 basis point falling rate environment at June 30, 2018, the model indicates ~~a decrease~~an increase of ~~8.2%~~1.9%, compared to a decrease of ~~9.8%~~3.1% as of December 31, ~~2016.~~2017. WesBanco’s policy is to limit such change to minus 10% increments for aeach 100 basis point change in interest ~~rates, minus 20% for a 200 basis point change~~rates. Generally, changes in ~~interest rates, minus 30% for a 300 basis point rate change~~the economic value of equity relate to changes in ~~interest rates, and minus 40% for a 400 basis point rate change in interest rates. Changes to~~ various assets and liabilities, as well as ~~certain~~ changes toin loan prepayment speeds and deposit decay ~~rates associated withnon-maturity~~ ~~deposits, caused the change in market value of tangible equity as compared toyear-end.~~rates.

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES—WesBanco’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) have concluded that WesBanco’s disclosure controls and procedures (as defined in Rules13a-15(e) and15d-15(e) under the Securities Exchange Act of 1934, as amended), based on their evaluation of these controls and procedures as of the end of the period covered by this Form10-Q, are effective to ensure that information required to be disclosed by WesBanco in the reports it files under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to WesBanco’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS—WesBanco’s management, including the CEO and CFO, does not expect that WesBanco’s disclosure controls and internal controls will prevent all errors and all fraud. While WesBanco’s disclosure controls and procedures are designed to provide reasonable assurance of achieving their objective, no control system, no matter how well conceived and operated, can provide absolute assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls.

CHANGES IN INTERNAL CONTROLS—There were no changes in WesBanco’s internal control over financial reporting that occurred during our fiscal quarter ended June 30, ~~2017~~2018 as required to be reported by paragraph (d) of Rules13a-15 and15d-15 under the Securities Exchange Act of 1934, that materially affected, or are reasonably likely to materially affect, WesBanco’s internal control over financial reporting.

WesBanco, Inc. (“WesBanco”) and Farmers Capital Bank Corporation (“Farmers Capital”) entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”), dated as of April 19, 2018, providing for, among other things, the merger of Farmers Capital with and into WesBanco with WesBanco surviving (the “Proposed Merger”). The Merger Agreement also provides that, immediately following the completion of the Proposed Merger, United Bank & Capital Trust Company, a Kentucky state-chartered commercial bank and a wholly-owned subsidiary of Farmers Capital (“United Bank”), will merge with and into WesBanco Bank, Inc., a West Virginia banking corporation and a wholly-owned subsidiary of WesBanco (“WesBanco Bank”), with WesBanco Bank continuing as the surviving bank.

On July 10, 2018 an alleged class action complaint was filed by a purported stockholder of Farmers Capital in the Franklin Circuit Court of the Commonwealth of Kentucky captionedParshall v. Farmers Capital Bank Corporation (Case No.18-CI-00699) against Farmers Capital, United Bank, the individual members of the board of directors of Farmers Capital (“Defendant Directors”), WesBanco and WesBanco Bank (the “Complaint”). Among other things, the Complaint alleges that the Definitive Proxy Statement filed by Farmers Capital with the Securities and Exchange Commission (“SEC”) on June 15, 2018 failed to disclose allegedly material information, including information relating to Farmers Capital’s financial projections and the valuation analyses performed by Farmers Capital’s financial advisor in connection with the Proposed Merger, and that the Director Defendants breached various of their fiduciary duties to Farmers Capital’s shareholders and that Farmers Capital, United Bank, WesBanco and WesBanco Bank aided and abetted those alleged breaches.

On July 18, 2018, solely to avoid the costs, risks and uncertainties inherent in litigation, Farmers Capital, United Bank, WesBanco, WesBanco Bank and the Director Defendants (Farmers Capital, United Bank, WesBanco, WesBanco Bank and the Director Defendants (collectively the “Defendants”), agreed with the plaintiff, among other things, that the Defendants would make certain additional disclosures concerning the Proposed Merger, and the plaintiff would dismiss his complaint with prejudice. Plaintiff’s counsel reserved the right to seek attorneys’ fees and expenses. The settlement had no impact on the timing of the special meeting of Farmers Capital shareholders, which was held on July 23, 2018 and at which Farmers Capital shareholders voted to approve the Merger Agreement. The settlement also did not affect the merger consideration to be paid to Farmers Capital’s shareholders in connection with the Proposed Merger. The additional disclosures were made pursuant to a Form8-K filed by WesBanco with the SEC on July 18, 2018.

WesBanco is involved in various lawsuits, claims, investigations and proceedings which arise in the ordinary course of business. While any litigation contains an element of uncertainty, WesBanco does not believe that a material loss related to such proceedings or claims pending or known to be threatened is reasonably possible.

As of June 30, ~~2017,~~2018, WesBanco had two active one million share stock repurchase plans. The first plan was originally approved by the Board of Directors on March 21, 2007 and the second, which is incremental to the first, was approved October 22, 2015. Each provides for shares to be repurchased for general corporate purposes, which may include a subsequent resource for potential acquisitions, shareholder dividend reinvestment and employee benefit plans. The timing, price and quantity of purchases are at the discretion of WesBanco, and the plan may be discontinued or suspended at any time.

The following table presents the monthly share purchase activity during the quarter ended June 30, ~~2017:~~2018:


Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans		Maximum Number of Shares that May Yet Be Purchased Under the Plans		Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans		Maximum Number of Shares that May Yet Be Purchased Under the Plans
Balance at March 31, 2017								1,120,307
Balance at March 31, 2018																1,107,297

April 1, 2017 to April 31, 2017
April 1, 2018 to April 30, 2018
Open market repurchases		—	$	—		—		1,120,307		—	$	—		—		1,107,297
Other transactions (1)		17,830		38.30		N/A		N/A		16,985		42.53		N/A		N/A

May 1, 2017 to May 31, 2017
May 1, 2018 to May 31, 2018
Open market repurchases										—	$	—		—		1,107,297
Other transactions (1)										2,342		45.17		N/A		N/A

June 1, 2018 to June 30, 2018
Open market repurchases										—	$	—		—		1,107,297
Other repurchases (2)		12,987	$	37.61		12,987		1,107,320		14,414		47.21		14,414		1,092,883
Other transactions (1)		936		39.16		N/A		N/A		1,673		47.46		N/A		N/A

June 1, 2017 to June 30, 2017
Other transactions (1)		1,565	$	38.01		N/A		N/A


Second Quarter 2017
Second Quarter 2018
Open market repurchases		—	$	—		—		1,120,307		—	$	—		—		1,107,297
Other repurchases (2)		12,987		37.61		12,987		1,107,320		14,414		47.21		14,414		1,092,883
Other transactions (1)		20,331		38.31		N/A		N/A		21,000		43.22		N/A		N/A

Total		33,318	$	38.04		12,987		1,107,320		35,414	$	44.84		14,414		1,092,883

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


WEST VIRGINIA		55-0571723
(State of incorporation)		(IRS Employer Identification No.)


1 Bank Plaza, Wheeling, WV		26003
(Address of principal executive offices)		(Zip Code)


*(unaudited, in thousands)*	September 9, 2016
Goodwill recognized as of December 31, 2016	$	92,889
Change in fair value of net assets acquired:
Assets
Loans		(1,156	)
Accrued income and other assets		743
Liabilities
Borrowings		—
Accrued expenses and other liabilities		269

Fair value of net assets acquired	$	(144	)

Increase in goodwill recognized		144

Goodwill recognized as of June 30, 2017	$	93,033


	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range (Weighted
*(unaudited, in thousands)*	Estimate		Techniques	Input	Average)
June 30, 2018
Impaired loans	$	—	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	—
				Liquidation expenses ⁽²⁾	—
Other real estate owned and repossessed assets		4,384	Appraisal of collateral ^(1), (3)
December 31, 2017:
Impaired loans	$	1,717	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	(4.8%) / (4.8%)
				Liquidation expenses ⁽²⁾	(7.6%) / (7.6%)
Other real estate owned and repossessed assets		5,297	Appraisal of collateral ^(1), (3)


*(unaudited, in thousands)*	Point of Revenue Recognition		For the Three Months Ended June 30, 2018		For the Six Months Ended June 30, 2018
Revenue Streams
Trust fees
Trust account fees		Over time	$	3,558	$	7,850
WesMark fees		Over time		2,194		4,405

Total trust fees				5,752		12,255
Service charges on deposits
Commercial banking fees		Over time		462		869
Personal service charges		At a point in time & Over time		4,684		9,100

Total service charges on deposits				5,146		9,969
Net securities brokerage revenue
Annuity commissions		At a point in time		1,310		2,510
Equity and debt security trades		At a point in time		87		189
Managed money		Over time		163		304
Trail commissions		Over time		249		476

Total net securities brokerage revenue				1,809		3,479
Electronic banking fees		At a point in time		5,728		10,558
Mortgage banking income		At a point in time		1,670		2,776
Net gain or loss on sale of other real estate owned		At a point in time		229		491


~~10.1~~ 2.1		~~WesBanco,~~Agreement and Plan of Merger, dated as of April 19, 2018, by and between Wesbanco, Inc. ~~Incentive Bonus, Option~~, Wesbanco Bank, Inc., Farmers Capital Bank Corporation, and ~~Restricted Stock Plan, as amended (Incorporated~~United Bank & Capital Trust Company (incorporated by reference to Exhibit ~~10.1~~2.1 to the ~~Current Report on~~ Form8-K filed by the Registrant with the Securities and Exchange Commission on April 20, ~~2017)~~2018).*

~~10.2~~		Form of WesBanco, Inc. Incentive Bonus, Option & Restricted Stock Plan - Performance Restricted Stock Agreement.*

31.1		Certification of Chief Executive Officer of Periodic Report Pursuant to Rule13a-15(e) or Rule15d-15(e).

31.2		Certification of Chief Financial Officer of Periodic Report Pursuant to Rule13a-15(e) or Rule15d-15(e).

32.1		Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following materials from WesBanco’s Quarterly Report on Form10-Q for the quarter ended June 30, ~~2017,~~2018, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, (ii) the Consolidated Statements of Comprehensive Income for the three and six months ended June 30, ~~2017~~2018 and ~~2016,~~2017, (iii) the Consolidated Statements of Changes in Stockholders’ Equity for the six months ended June 30, ~~2017~~2018 and ~~2016,~~2017, (iv) the Consolidated Statements of Cash Flows for the six months ended June 30, ~~2017~~2018 and ~~2016,~~2017, and (v) the Notes to Consolidated Financial Statements.


				WESBANCO, INC.

Date: July ~~31, 2017~~30, 2018				/s/ Todd F. Clossin
				~~/s/ Todd F. Clossin~~
				Todd F. Clossin
				President and Chief Executive Officer (Principal Executive Officer)

Date: July ~~31, 2017~~30, 2018				/s/ Robert H. Young
				~~/s/ Robert H. Young~~
				Robert H. Young
				Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

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