Federal Home Loan Bank Borrowings

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Federal Home Loan Bank Borrowings

NOTE 5. FEDERAL HOME LOAN BANK BORROWINGS

WesBanco is a member of the FHLB System. WesBanco’s FHLB borrowings, which consist of borrowings from both the FHLB of Pittsburgh and the FHLB of Cincinnati, are secured by a blanket lien by the FHLB on certain residential mortgages and other loan types or securities with a market value in excess of the outstanding balances of the borrowings. At June 30, 2013 and December 31, 2012, WesBanco had FHLB borrowings of $60.3 million and $111.2 million, with a weighted-average interest rate of 2.72% and 3.04%, respectively. The decline in borrowings from December 31, 2012 was due to scheduled maturities. The terms of the security agreement with the FHLB include a specific assignment of collateral that requires the maintenance of qualifying mortgage and other types of loans as pledged collateral with unpaid principal amounts in excess of the FHLB advances, when discounted at certain pre-established percentages of the loans’ unpaid principal balances. FHLB stock owned by WesBanco totaling $13.2 million at June 30, 2013 and $21.3 million at December 31, 2012 is also pledged as collateral on these advances. The remaining maximum borrowing capacity by WesBanco with the FHLB at June 30, 2013 and December 31, 2012 was estimated to be approximately $1.4 billion and $1.3 billion, respectively.

Certain FHLB advances contain call features, which allow the FHLB to call the outstanding balance or convert a fixed rate borrowing to a variable rate advance if the strike rate goes beyond a certain predetermined rate. The probability that these advances will be called depends primarily on the level of related interest rates during the call period. Of the $60.3 million outstanding at June 30, 2013, $6.0 million in FHLB convertible advances are subject to call or conversion to a variable rate advance by the FHLB.

The following table presents the aggregate annual maturities and weighted-average interest rates of FHLB borrowings at June 30, 2013 based on their contractual maturity dates and effective interest rates:

(unaudited, dollars in thousands)	Scheduled		Weighted
Year	Maturity		Average Rate
2013	$	20,340		0.55	%
2014		16,059		3.40	%
2015		893		4.69	%
2016		91		4.35	%
2017		15,681		3.77	%
2018 and thereafter		7,280		4.74	%
Total	$	60,344		2.72	%