Company: WSBC
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030795
Chunk: 93

Company: WESBANCO INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 93
---
 accounting adjustments

        (6,959
        )

        (8,398
        )

        (9,594
        )

        Compensation and benefits

        (1,981
        )

        (1,818
        )

        (47
        )

        Lease - right of use assets

        (8,331
        )

        (10,173
        )

        (9,391
        )

        Other

        —

        (197
        )

        (763
        )

        Gross deferred tax liabilities

        (26,082
        )

        (30,636
        )

        (28,253
        )

        Net deferred tax assets
         
        $
        97,983

        $
        96,423

        $
        106,501

       No valuation allowance was established for any deferred tax assets, since management believes that deferred tax assets are likely to be realized through future reversals of existing taxable temporary differences and future taxable income.As a result of the acquisition of Your Community Bankshares ("YCB") in 2016 and Old Line Bankshares in 2019, Wesbanco has federal net operating loss (“NOL”) carryforwards of $15.5 million, which expire beginning in 2034 and 2037, respectively. Wesbanco has Maryland NOL carryforwards of $3.5 million, which begin expiring in 2030.  Wesbanco has Kentucky NOL carryforwards of $6.7 million, which begin expiring in 2034.  The use of the federal NOL and other carryforwards are limited by Internal Revenue Code Section 382, but they are currently expected to be utilized before their respective expiration dates.As a result of the previous acquisitions of YCB, ESB Financial Corporation, Fidelity Bancorp, Inc., Western Ohio Financial Corporation, Winton Financial Corporation and Oak Hill Financial, Inc., retained earnings at both December 31, 2024 and 2023 included $45.9 million of qualifying and non-qualifying tax bad debt reserves existing as of December 31, 1987, upon which no provision for income taxes has been recorded. The related amount of unrecognized deferred tax liability is $10.3 million and $10.5 million for 2024 and 2023, respectively. If this portion of retained earnings is used in the future for any purpose other than to absorb bad debts, it would be added to future taxable income.Federal