Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2015

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

The following tables set forth WesBanco’s financial assets and liabilities that were accounted for at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as of March 31, 2015 and December 31, 2014:


			March 31, 2015
			Fair Value Measurements Using:
*(unaudited, in thousands)*	March 31, 2015		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
Obligations of government agencies	$	80,768	$	—	$	80,768	$	—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		1,283,445		—		1,283,445		—
Obligations of state and political subdivisions		95,653		—		95,653		—
Corporate debt securities		183,090		—		183,090		—
Equity securities		11,308		8,538		2,770		—

Total securities - available-for-sale	$	1,654,264	$	8,538	$	1,645,726	$	—

Total recurring fair value measurements	$	1,654,264	$	8,538	$	1,645,726	$	—


Nonrecurring fair value measurements
Impaired loans	$	4,533	$	—	$	—	$	4,533
Other real estate owned and repossessed assets		6,226		—		—		6,226
Loans held for sale		6,064		—		6,064		—

Total nonrecurring fair value measurements	$	16,823	$	—	$	6,064	$	10,759


			December 31, 2014
			Fair Value Measurements Using:
*(unaudited, in thousands)*	December 31, 2014		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
Obligations of government agencies	$	87,736	$	—	$	87,736	$	—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies		701,113		—		701,113		—
Obligations of state and political subdivisions		91,433		—		91,433		—
Corporate debt securities		25,996		—		25,996		—
Equity securities		11,146		8,440		2,706		—

Total securities - available-for-sale	$	917,424	$	8,440	$	908,984	$	—

Total recurring fair value measurements	$	917,424	$	8,440	$	908,984	$	—


Nonrecurring fair value measurements
Impaired loans	$	6,024	$	—	$	—	$	6,024
Other real estate owned and repossessed assets		5,082		—		—		5,082
Loans held for sale		5,865		—		5,865		—

Total nonrecurring fair value measurements	$	16,971	$	—	$	5,865	$	11,106

Schedule of Assets Measured at Fair Value on Nonrecurring Basis

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


	Quantitative Information about Level 3 Fair Value Measurements
*(unaudited, in thousands)*	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
March 31, 2015:
Impaired loans	$	4,533	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	0% to (38.5%) / (6.9%)
				Liquidation expenses ⁽²⁾	(3.1%) to (8.0%) / (7.4%)
Other real estate owned and repossessed assets		6,226	Appraisal of collateral ^(1), (3)
December 31, 2014:
Impaired loans	$	6,024	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	0% to (39.7%) / (6.7%)
				Liquidation expenses ⁽²⁾	(1.2%) to (8.0%) / (6.7%)
Other real estate owned and repossessed assets		5,082	Appraisal of collateral ^(1), (3)

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

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

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

Estimates Fair Values of Financial Instruments

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


					Fair Value Measurements at March 31, 2015
*(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)
Financial Assets
Cash and due from banks	$	92,974	$	92,974	$	92,974	$	—	$	—
Securities available-for-sale		1,654,264		1,654,264		8,538		1,645,726		—
Securities held-to-maturity		743,925		772,843		—		772,088		755
Net loans		4,829,548		4,820,779		—		—		4,820,779
Loans held for sale		6,064		6,064		—		6,064		—
Accrued interest receivable		25,232		25,232		25,232		—		—
Bank-owned life insurance		153,991		153,991		153,991		—		—

Financial Liabilities
Deposits		6,416,202		6,423,499		4,532,314		1,891,185		—
Federal Home Loan Bank borrowings		432,456		435,089		—		435,089		—
Other borrowings		76,630		76,621		73,589		3,032		—
Junior subordinated debt		142,269		116,070		—		116,070		—
Accrued interest payable		2,297		2,297		2,297		—		—

					Fair Value Measurements at December 31, 2014
*(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)
Financial Assets
Cash and due from banks	$	94,002	$	94,002	$	94,002	$	—	$	—
Securities available-for-sale		917,424		917,424		8,440		908,984		—
Securities held-to-maturity		593,670		619,617		—		618,895		722
Net loans		4,042,112		4,047,648		—		—		4,047,648
Loans held for sale		5,865		5,865		—		5,865		—
Accrued interest receivable		18,481		18,481		18,481		—		—
Bank-owned life insurance		123,298		123,298		123,298		—		—

Financial Liabilities
Deposits		5,048,983		5,056,828		3,743,887		1,312,941		—
Federal Home Loan Bank borrowings		223,126		225,456		—		225,456		—
Other borrowings		80,690		80,696		77,534		3,162		—
Junior subordinated debt		106,176		79,212		—		79,212		—
Accrued interest payable		1,620		1,620		1,620		—		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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