Company: WSBC
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030795
Chunk: 73

Company: WESBANCO INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 73
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 and operating lease liability, included in premises and equipment, net and other liabilities, respectively, on the consolidated balance sheet. Operating lease ROU assets represent the right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded primarily in net occupancy expense in the consolidated statements of income.Operating leases relate primarily to bank branches, office space and license agreements with remaining lease terms of generally 1 to 30 years, which include options for multiple five and ten year extensions, with a weighted average lease term of 14 years. As of December 31, 2024, operating lease ROU assets and liabilities were $34.8 million and $39.0 million, respectively, and as of December 31, 2023, operating lease ROU assets and liabilities were $42.1 million and $46.3 million, respectively. The lease expense for operating leases was $5.0 million, $4.6 million and $4.6 million for the years ended December 31, 2024, 2023 and 2022, respectively. The weighted average discount rate was 3.10% as of December 31, 2024.  Wesbanco also has certain software licenses and maintenance agreements that are not subject to ASC 842, "Leases."  Of those, the Bank has a contract with its core banking software provider through 2027, in which it is projected the annual obligation during the contract period will be a minimum of $11.2 million per year.  Finance leases relate primarily to bank branches, equipment and office space with remaining lease terms of generally 5 to 25 years, which include options for multiple five and ten year extensions, with weighted-average lease terms of 10 years. As of December 31, 2024, the finance lease ROU assets and liabilities were $26.1 million and $27.0 million, respectively, and were $29.1 million and $29.0 million, respectively, as of December 31, 2023. The weighted average discount rate was