Company: WSBC
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030795
Chunk: 227

Company: WESBANCO INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 227
---
 to be collected due to default. The primary macroeconomic drivers of the quantitative model include forecasts of national unemployment and interest rates, as well as modeling adjustments for changes in prepayment speeds, portfolio mix and loan growth. At December 31, 2024, the primary drivers of the allowance were loan growth, 

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macroeconomic variables and prepayment speeds, as well as changes in qualitative factors for distressed industries, the current interest rate environment and changes in the level of criticized and classified loans within the commercial loan categories. The forecast was based upon a probability weighted approach which is designed to incorporate loss projections from a baseline, upside and downside economy. Due to the nonlinearity of credit losses to the economy, the asymmetry is best captured by evaluating multiple economic scenarios through a probability weighted approach. At year-end, Wesbanco applied a one-year forecast and immediately reverted to historical losses. The national unemployment rate was projected to be 4.6% as of December 31, 2024 and subsequently increase to an average of 4.9% over the remainder of the one-year forecast period.  

Table 19 summarizes the allowance together with selected relationships of the allowance and provision for credit losses to total loans and certain categories of loans.

TABLE 19. ALLOWANCE FOR CREDIT LOSSES

    December 31,

    (dollars in thousands)
     
    2024

    2023

    2022

    Balance at beginning of year:

    Allowance for credit losses - loans
     
    $
    130,675

    $
    117,790

    $
    121,622

    Allowance for credit losses - loan commitments

    8,604

    8,368

    7,775

    Total beginning allowance for credit losses - loans and loan commitments

    139,279

    126,158

    129,397

    Provision for credit losses:

    Provision for loan losses

    21,734

    17,527

    (2,208
    )

    Provision for loan commitments

    (2,484
    )

    236

    593

    Total provision for credit losses - loans and loan commitments

    19,250

    17,763

    (1,615
    )

    Net charge-offs:

    Total charge-offs

    (19,875
    )

    (11,177
    )

    (7,892