Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Nonrecurring Basis

The following table sets 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, 2013:

			June 30, 2013
			Fair Value Measurements Using:
(unaudited, in thousands)	June 30, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring fair value measurements
Securities - available-for-sale
Other government agencies	$	70,833	$	—	$	70,833	$	—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		714,416		—		714,416		—
Obligations of state and political subdivisions		132,214		—		132,214		—
Corporate debt securities		42,608		—		42,608		—
Equity securities		11,107		9,050		2,057		—
Total securities - available-for-sale	$	971,178	$	9,050	$	962,128	$	—
Total recurring fair value measurements	$	971,178	$	9,050	$	962,128	$	—
Nonrecurring fair value measurements
Impaired loans	$	2,937	$	—	$	—	$	2,937
Other real estate owned and repossessed assets		5,007		—		—		5,007
Mortgage servicing rights		1,040		—		—		1,040
Loans held for sale		14,517		—		14,517		—
Total nonrecurring fair value measurements	$	23,501	$	—	$	14,517	$	8,984

The following table sets forth WesBanco’s financial assets and liabilities that were accounted for at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as of December 31, 2012:

			December 31, 2012
			Fair Value Measurements Using:
(unaudited, in thousands)	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring fair value measurements
Securities - available-for-sale
Other government agencies	$	96,612	$	—	$	96,612	$	—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		732,210		—		732,210		—
Obligations of state and political subdivisions		148,635		—		148,612		23
Corporate debt securities		32,685		—		32,685		—
Equity securities		11,102		9,059		2,043		—
Total securities - available-for-sale	$	1,021,244	$	9,059	$	1,012,162	$	23
Total recurring fair value measurements	$	1,021,244	$	9,059	$	1,012,162	$	23
Nonrecurring fair value measurements
Impaired loans	$	3,866	$	—	$	—	$	3,866
Other real estate owned and repossessed assets		5,988		—		—		5,988
Mortgage servicing rights		825		—		—		825
Loans held for sale		21,903		—		21,903		—
Total nonrecurring fair value measurements	$	32,582	$	—	$	21,903	$	10,679

Schedule of Assets Measured at Fair Value on Nonrecurring Basis

The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which WesBanco has utilized level 3 inputs to determine fair value:

	Quantitative Information about Level 3 Fair Value Measurements
(unaudited, dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
June 30, 2013:
Impaired loans	$	2,937	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to (28.4%) / (8.9%)
				Liquidation expenses (2)	(5.7%) to (8.0%) / (6.7%)
Other real estate owned and repossessed assets		5,007	Appraisal of collateral (1), (3)
Mortgage servicing rights		1,040	Discounted cash flow	Remaining term	2.8 yrs to 26.5 yrs / 15.5 yrs
				Discount rate	9% to 12% / 9.9%
December 31, 2012:
Impaired loans	$	3,866	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to (50.8%) / (13.7%)
				Liquidation expenses (2)	(3.9%) to (8.0%) / (6.8%)
Other real estate owned and repossessed assets		5,988	Appraisal of collateral (1), (3)
Mortgage servicing rights		825	Discounted cash flow	Remaining term	2.8 yrs to 27.0 yrs / 15.8 yrs
				Discount rate	9.0% to 12.0% / 9.8%

⁽¹⁾ Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

⁽²⁾  Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expenses are presented as a percent of the appraisal.

⁽³⁾  Includes estimated liquidation expenses and numerous dissimilar qualitative adjustments by management which are not identifiable.

Estimates Fair Value of Financial Instruments

					Fair Value Measurements
(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)
June 30, 2013:
Financial Assets
Cash and due from banks	$	78,070	$	78,070	$	78,070	$	—	$	—
Securities available-for-sale		971,178		971,178		9,050		962,128		—
Securities held-to-maturity		608,761		615,203		—		614,456		747
Net loans		3,751,001		3,710,157		—		—		3,710,157
Loans held for sale		14,517		14,517		—		14,517		—
Accrued interest receivable		19,248		19,248		19,248		—		—
Bank owned life insurance		119,546		119,546		119,546		—		—
Financial Liabilities
Deposits		4,938,755		4,959,564		3,362,364		1,597,200		—
Federal Home Loan Bank borrowings		60,344		64,418		—		64,418		—
Other borrowings		200,538		203,676		153,750		49,926		—
Junior subordinated debt		106,118		63,763		—		63,763		—
Accrued interest payable		3,516		3,516		3,516		—		—
December 31, 2012:
Financial Assets
Cash and due from banks	$	125,605	$	125,605	$	125,605	$	—	$	—
Securities available-for-sale		1,021,244		1,021,244		9,059		1,012,162		23
Securities held-to-maturity		602,509		639,273		—		638,469		804
Net loans		3,635,063		3,600,068		—		—		3,600,068
Loans held for sale		21,903		21,903		—		21,903		—
Accrued interest receivable		19,354		19,354		19,354		—		—
Bank owned life insurance		119,671		119,671		119,671		—		—
Financial Liabilities
Deposits		4,944,284		4,963,356		3,294,664		1,668,692		—
Federal Home Loan Bank borrowings		111,187		114,461		—		114,461		—
Other borrowings		142,971		142,753		95,768		46,985		—
Junior subordinated debt		113,832		64,624		—		64,624		—
Accrued interest payable		3,856		3,856		3,856		—		—