Company: WSBC
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001193125-25-274353
Chunk: 7

Company: WESBANCO INC
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 3
Chunk 7
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  No material assumption changes were made by management this period. The net interest income sensitivity results presented in Table 1, “Net Interest Income Sensitivity,” assumes that the balance sheet composition of interest sensitive assets and liabilities existing at the end of the period remains constant over the period being measured (otherwise known as a "static" balance sheet) and also assumes that a particular change in interest rates is reflected immediately and parallel across all tenors of the yield curve, regardless of the duration of the maturity or re-pricing of specific assets and liabilities. Since the assumptions used in the model relative to changes in interest rates are uncertain, the simulation analysis may not be indicative of actual results, particularly in times of stress.  In addition, this analysis does not consider actions that management might employ in the future in response to changes in interest rates, as well as changes in earning asset and costing liability balances.

Interest rate risk policy limits are determined by measuring the anticipated change in net interest income over a twelve-month period, assuming immediate and sustained market interest rate increases and decreases of 100 - 400 basis points across the entire yield curve, as compared to a flat rate environment or base model.  Wesbanco’s current policy limits this exposure for the noted interest rate changes to a reduction of between 7.5% - 20%, or less, of net interest income from the stable rate base model over a twelve-month period.  The table below indicates Wesbanco’s interest rate sensitivity at September 30, 2025 and December 31, 2024, assuming the above-noted interest rate changes, as compared to a base model.  

TABLE 1. NET INTEREST INCOME SENSITIVITY

     Immediate Change in
      
     Percentage Change in

     Interest Rates
      
     Net Interest Income from Base over One Year
      
     ALCO

     (basis points)
      
     September 30, 2025
      
     December 31, 2024
      
     Guidelines

     +200
      
     3.1%
      
     4.8%
      
     (10.0%)

     +100
      
     1.5%
      
     2.3%
      
     (7.5%)

     -100
      
     (1.9%)
      
     (2.2%)
      
     (7.5%)

     -200
      
     (4.5%)