Company: WSBC
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030795
Chunk: 69

Company: WESBANCO INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 69
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 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. Accrued interest receivable for loans was $62.2 million at both December 31, 2024 and December 31, 2023. Wesbanco made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses because the Company has a policy in place to reverse or write-off accrued interest when loans are placed on non-accrual.  However, Wesbanco does have a $0.1 million reserve on the accrued interest related to loan modifications allowed under the Coronavirus Aid, Relief and Economic Security ("CARES") Act due to the timing and nature of these modifications.  Accrued interest related to COVID-19 loan modifications as permitted under the CARES Act was $13.9 million and $15.6 million at December 31, 2024 and December 31, 2023, respectively.  

91

The following tables summarize changes in the allowance for credit losses applicable to each category of the loan portfolio: 

        For the Year Ended December 31, 2024

        (in thousands)
         
        CommercialReal Estate-Land andConstruction

        CommercialReal Estate-ImprovedProperty

        Commercial&Industrial

        ResidentialRealEstate

        HomeEquity

        Consumer

        DepositOverdrafts (1)

        Total

        Balance at beginning of year:

        Allowance for credit   losses - loans
         
        $
        7,123

        $
        59,351

        $
        36,644

        $
        21,218

        $
        1,017

        $
        3,956

        $
        1,366

        $
        130,675

        Allowance for credit   losses - loan commitments

        6,894

        —

        429

        1,276

        5

        —

        —

        8,604

        Total beginning allowance for   credit losses - loans and loan