UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

~~FORM10-Q~~

FORM 10-Q

(Mark One)

☒
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~June 30, ~~2017~~2023

☐
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period fromto

Commission File Number~~000-08467~~001-39442

WESBANCO, INC.

(Exact name of Registrant as specified in its charter)


~~WEST VIRGINIA~~ West Virginia		55-0571723
(State of incorporation)		(IRS Employer Identification No.)

1 Bank Plaza, Wheeling, WV		26003
(Address of principal executive offices)		(Zip Code)

~~Registrant’s~~

Registrant's telephone number, including area code:~~304-234-9000~~304-234-9000

NOT APPLICABLE

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock $2.0833 Par Value	WSBC	NASDAQ Global Select Market
Depositary Shares (each representing 1/40th interest in a share of 6.75% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A)	WSBCP	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of RegulationS-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule12b-2 of the Exchange Act.


Large accelerated filer	☑	☑	Accelerated filer	☐
Non-accelerated filer	☐
~~Non-accelerated~~ ~~filer~~		~~☐ (Do not check if a smaller reporting company)~~	Smaller reporting company	☐

			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule12b-2 of the Exchange Act).

Yes ☐ No ☑

As of ~~October 23, 2017,~~July 26, 2023, there were ~~44,033,267~~59,355,062 shares of ~~WesBanco,~~Wesbanco, Inc. common stock, $2.0833 par value, outstanding.

WESBANCO, INC.

TABLE OF CONTENTS


Item No.	ITEM	Page No.		ITEM	Page No.

	PART I – FINANCIAL INFORMATION			PART I - FINANCIAL INFORMATION
1	Financial Statements			Financial Statements	2
				Consolidated Balance Sheets at June 30, 2023 (unaudited) and December 31, 2022	2
	Consolidated Balance Sheets at September 30, 2017 (unaudited) and December 31, 2016		3	Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022 (unaudited)	3
	Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016 (unaudited)		4	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2023 and 2022 (unaudited)	4
	Consolidated Statements of Changes in Shareholders’ Equity for the nine months ended September 30, 2017 and 2016 (unaudited)		5	Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2023 and 2022 (unaudited)	5
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 (unaudited)		6	Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)		7	Notes to Consolidated Financial Statements (unaudited)	8

2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		34	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34

3	Quantitative and Qualitative Disclosures About Market Risk		56	Quantitative and Qualitative Disclosures About Market Risk	52

4	Controls and Procedures		59	Controls and Procedures	54

	PART II – OTHER INFORMATION			PART II – OTHER INFORMATION
1	Legal Proceedings		60	Legal Proceedings	55

2	Unregistered Sales of Equity Securities and Use of Proceeds		60	Unregistered Sales of Equity Securities and Use of Proceeds	55

5				Other Information	55

6	Exhibits		61	Exhibits	56

	Signatures		62	Signatures	57

PART I —- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

WESBANCO, INC. CONSOLIDATED BALANCE SHEETS


	June 30,			December 31,
(unaudited, in thousands, except shares)	2023			2022
ASSETS
Cash and due from banks, including interest bearing amounts of $384,261 and $242,229, respectively	$	562,318		$	408,411
Securities:
Equity securities, at fair value		11,948			11,506
Available-for-sale debt securities, at fair value		2,329,222			2,529,140
Held-to-maturity debt securities (fair values of $1,072,229 and $1,084,390, respectively)		1,224,470			1,248,629
Allowance for credit losses, held-to-maturity debt securities		(193	)		(220	)
Net held-to-maturity debt securities		1,224,277			1,248,409
Total securities		3,565,447			3,789,055
Loans held for sale		28,970			8,249
Portfolio loans, net of unearned income		11,129,964			10,702,728
Allowance for credit losses - loans		(120,166	)		(117,790	)
Net portfolio loans		11,009,798			10,584,938
Premises and equipment, net		219,934			220,892
Accrued interest receivable		69,773			68,522
Goodwill and other intangible assets, net		1,136,773			1,141,355
Bank-owned life insurance		355,204			352,361
Other assets		408,737			358,122
Total Assets	$	17,356,954		$	16,931,905
LIABILITIES
Deposits:
Non-interest bearing demand	$	4,286,235		$	4,700,438
Interest bearing demand		3,273,745			3,119,807
Money market		1,685,667			1,684,023
Savings deposits		2,655,680			2,741,004
Certificates of deposit		960,107			885,818
Total deposits		12,861,434			13,131,090
Federal Home Loan Bank borrowings		1,380,000			705,000
Other short-term borrowings		101,286			135,069
Subordinated debt and junior subordinated debt		281,854			281,404
Total borrowings		1,763,140			1,121,473
Accrued interest payable		8,869			4,593
Other liabilities		258,513			248,087
Total Liabilities		14,891,956			14,505,243
SHAREHOLDERS' EQUITY
Preferred stock, no par value, 1,000,000 shares authorized; 150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, liquidation preference $150,000,000, issued and outstanding at June 30, 2023 and December 31, 2022, respectively		144,484			144,484
Common stock, $2.0833 par value; 100,000,000 shares authorized; 68,081,306 shares issued; 59,355,062 and 59,198,963 shares outstanding at June 30, 2023 and December 31, 2022, respectively		141,834			141,834
Capital surplus		1,630,963			1,635,877
Retained earnings		1,118,135			1,077,675
Treasury stock (8,726,244 and 8,882,343 shares - at cost, respectively)		(303,770	)		(308,964	)
Accumulated other comprehensive loss		(264,627	)		(262,416	)
Deferred benefits for directors		(2,021	)		(1,828	)
Total Shareholders' Equity		2,464,998			2,426,662
Total Liabilities and Shareholders' Equity	$	17,356,954		$	16,931,905

(unaudited, in thousands, except shares)
   September 30,
2017 December 31,
2016
ASSETS

Cash and due from banks, including interest bearing amounts of$14,704 and $21,913, respectively
   $ 110,871 $ 128,170
Securities:

Trading securities, at fair value
   7,929 7,071
Available-for-sale, at fair value
   1,305,532 1,241,176
Held-to-maturity (fair values of $1,044,748and $1,076,790, respectively)
   1,025,688 1,067,967


Total securities
   2,339,149 2,316,214


Loans held for sale
   26,888 17,315


Portfolio loans, net of unearned income
   6,373,049 6,249,436
Allowance for loan losses
   (45,487 ) (43,674 )


Net portfolio loans
   6,327,562 6,205,762


Premises and equipment, net
   133,497 133,297
Accrued interest receivable
   30,152 28,299
Goodwill and other intangible assets, net
   590,249 593,187
Bank-owned life insurance
   191,466 188,145
Other assets
   168,443 180,488


Total Assets
   $ 9,918,277 $ 9,790,877


LIABILITIES

Deposits:

Non-interest bearing demand
   $ 1,851,167 $ 1,789,522
Interest bearing demand
   1,666,117 1,546,890
Money market
   990,788 995,477
Savings deposits
   1,258,887 1,213,168
Certificates of deposit
   1,334,066 1,495,822


Total deposits
   7,101,025 7,040,879


Federal Home Loan Bank borrowings
   1,015,011 968,946
Other short-term borrowings
   165,576 199,376
Subordinated debt and junior subordinated debt
   164,278 163,598


Total borrowings
   1,344,865 1,331,920


Accrued interest payable
   3,924 2,204
Other liabilities
   73,905 74,466


Total Liabilities
   8,523,719 8,449,469


SHAREHOLDERS’ EQUITY

Preferred stock, no par value; 1,000,000 shares authorized; none outstanding
   —   —
Common stock, $2.0833 par value;100,000,000shares authorized in 2017 and 2016, respectively;44,041,572and 43,931,715 shares issued, respectively;44,033,585 and 43,931,715 shares outstanding, respectively
   91,753 91,524
Capital surplus
   683,348 680,507
Retained earnings
   641,329 597,071
Treasury stock (7,987 and 0shares in 2017 and 2016, respectively, at cost)
   (300 ) —
Accumulated other comprehensive loss
   (20,837 ) (27,126 )
Deferred benefits for directors
   (735 ) (568 )


Total Shareholders’ Equity
   1,394,558 1,341,408


Total Liabilities and Shareholders’ Equity
   $ 9,918,277 $ 9,790,877

See Notes to Consolidated Financial Statements.

WESBANCO, INC. CONSOLIDATED STATEMENTS OF INCOME

For the Three Months
Ended June 30,

For the Six Months
Ended June 30,

(unaudited, in thousands, except shares and per share amounts)

2023

2022

2023

2022

INTEREST AND DIVIDEND INCOME

Loans, including fees

$
145,741

$
96,412

$
279,147

$
189,532

Interest and dividends on securities:

Taxable

18,483

15,825

37,569

29,937

Tax-exempt

4,723

4,706

9,513

9,049

Total interest and dividends on securities

23,206

20,531

47,082

38,986

Other interest income

7,108

1,504

10,380

2,103

Total interest and dividend income

176,055

118,447

336,609

230,621

INTEREST EXPENSE

Interest bearing demand deposits

17,203

1,153

28,309

1,965

Money market deposits

7,220

383

11,472

704

Savings deposits

5,860

330

9,860

595

Certificates of deposit

2,906

1,116

4,109

2,389

Total interest expense on deposits

33,189

2,982

53,750

5,653

Federal Home Loan Bank borrowings

16,713

411

28,013

986

Other short-term borrowings

492

48

909

96

Subordinated debt and junior subordinated debt

4,094

2,778

8,039

3,948

Total interest expense

54,488

6,219

90,711

10,683

NET INTEREST INCOME

121,567

112,228

245,898

219,938

Provision for credit losses

3,028

(812
)

6,605

(4,250
)
Net interest income after provision for credit losses

118,539

113,040

239,293

224,188

NON-INTEREST INCOME

Trust fees

6,918

6,527

14,412

14,362

Service charges on deposits

6,232

6,487

12,401

12,577

Electronic banking fees

5,010

5,154

9,615

10,499

Net securities brokerage revenue

2,523

2,258

5,098

4,478

Bank-owned life insurance

3,189

2,384

5,149

6,264

Mortgage banking income

601

1,328

1,027

3,251

Net securities gains (losses)

205

(1,183
)

350

(1,832
)
Net gain (loss) on other real estate owned and other assets

871

(1,302
)

1,104

(2,108
)
Other income

6,292

5,330

10,337

9,874

Total non-interest income

31,841

26,983

59,493

57,365

NON-INTEREST EXPENSE

Salaries and wages

44,471

41,213

86,422

80,150

Employee benefits

11,511

8,722

23,570

17,880

Net occupancy

6,132

6,119

12,775

13,354

Equipment and software

8,823

7,702

17,885

15,713

Marketing

2,763

2,749

5,088

5,170

FDIC insurance

2,871

1,937

5,755

3,459

Amortization of intangible assets

2,282

2,579

4,583

5,178

Restructuring and merger-related expense

35

52

3,188

1,646

Other operating expenses

17,549

15,946

33,294

32,019

Total non-interest expense

96,437

87,019

192,560

174,569

Income before provision for income taxes

53,943

53,004

106,226

106,984

Provision for income taxes

9,063

10,256

19,005

20,114

Net income

44,880

42,748

87,221

86,870

Preferred stock dividends

2,531

2,531

5,063

5,063

Net income available to common shareholders

$
42,349

$
40,217

$
82,158

$
81,807

EARNINGS PER COMMON SHARE

Basic

$
0.71

$
0.67

$
1.39

$
1.35

Diluted

$
0.71

$
0.67

$
1.38

$
1.34

AVERAGE COMMON SHARES OUTSTANDING

Basic

59,263,949

60,036,103

59,240,958

60,736,858

Diluted

59,385,847

60,185,207

59,389,314

60,899,270

DIVIDENDS DECLARED PER COMMON SHARE

$
0.35

$
0.34

$
0.70

$
0.68

See Notes to Consolidated Financial Statements.
3

WESBANCO, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(unaudited, in thousands)	2023			2022			2023			2022
Net income	$	44,880		$	42,748		$	87,221		$	86,870
Debt securities available-for-sale:
Net change in unrealized losses on debt securities available-for-sale		(40,018	)		(85,314	)		(3,408	)		(225,167	)
Related income tax effect		9,709			20,503			927			54,109
Net securities losses reclassified into earnings		8			9			159			10
Related income tax effect		(2	)		(2	)		(39	)		(2	)
Net effect on other comprehensive income for the period		(30,303	)		(64,804	)		(2,361	)		(171,050	)
Defined benefit plans:
Amortization of net loss and prior service costs		99			73			198			144
Related income tax effect		(24	)		(18	)		(48	)		(35	)
Net effect on other comprehensive income for the period		75			55			150			109
Total other comprehensive loss		(30,228	)		(64,749	)		(2,211	)		(170,941	)
Comprehensive income (loss)	$	14,652		$	(22,001	)	$	85,010		$	(84,071	)

   For the Three Months
Ended September 30,    For the Nine Months
Ended September 30,
(unaudited, in thousands, except shares and per share amounts)
   2017 2016    2017    2016
INTEREST AND DIVIDEND INCOME

Loans, including fees
   $ 70,342 $ 55,822    $ 202,600    $ 160,858
Interest and dividends on securities:

Taxable
   9,711 9,137    28,682    29,129
Tax-exempt
   4,862 4,559    14,617    13,620






Total interest and dividends on securities
   14,573 13,696    43,299    42,749






Other interest income
   574 574    1,674    1,671






Total interest and dividend income
   85,489 70,092    247,573    205,278






INTEREST EXPENSE

Interest bearing demand deposits
   1,814 691    4,413    1,841
Money market deposits
   751 444    1,970    1,350
Savings deposits
   189 173    555    502
Certificates of deposit
   2,610 2,592    7,512    7,835






Total interest expense on deposits
   5,364 3,900    14,450    11,528






Federal Home Loan Bank borrowings
   3,628 3,005    9,608    9,104
Other short-term borrowings
   394 118    954    299
Subordinated debt and junior subordinated debt
   1,849 1,043    5,449    2,706






Total interest expense
   11,235 8,066    30,461    23,637






NET INTEREST INCOME
   74,254 62,026    217,112    181,641
Provision for credit losses
   2,516 2,214    7,610    6,350






Net interest income after provision for credit losses
   71,738 59,812    209,502    175,291






NON-INTEREST INCOME

Trust fees
   5,358 5,413    17,073    16,160
Service charges on deposits
   5,320 4,733    15,254    12,861
Electronic banking fees
   4,883 3,945    14,395    11,290
Net securities brokerage revenue
   1,721 1,473    5,164    5,119
Bank-owned life insurance
   1,164 995    3,671    2,910
Net gains on sales of mortgage loans
   1,103 814    3,511    2,045
Net securities gains
   6 598    511    2,293
Net (loss)/gain on other real estate owned and other assets
   (298 ) 184    9    380
Other income
   1,642 2,862    6,318    6,943






Totalnon-interest income
   20,899 21,017    65,906    60,001






NON-INTEREST EXPENSE

Salaries and wages
   24,957 21,225    71,575    60,136
Employee benefits
   7,728 6,275    23,670    20,684
Net occupancy
   4,132 3,647    12,969    10,459
Equipment
   3,905 3,557    12,043    10,387
Marketing
   1,599 1,295    4,482    3,876
FDIC insurance
   945 961    2,677    3,225
Amortization of intangible assets
   1,223 837    3,736    2,263
Restructuring and merger-related expense
   —   9,883    491    10,577
Other operating expenses
   11,265 9,921    34,380    28,696






Totalnon-interest expense
   55,754 57,601    166,023    150,303






Income before provision for income taxes
   36,883 23,228    109,385    84,989
Provision for income taxes
   10,527 5,793    30,801    22,572






NET INCOME
   $ 26,356 $ 17,435    $ 78,584    $ 62,417






EARNINGS PER COMMON SHARE

Basic
   $ 0.60 $ 0.44    $ 1.79    $ 1.61
Diluted
   $ 0.60 $ 0.44    $ 1.78    $ 1.61






AVERAGE COMMON SHARES OUTSTANDING

Basic
   44,031,813 39,715,516    43,992,017    38,828,618
Diluted
   44,086,881 39,743,291    44,059,469    38,855,453






DIVIDENDS DECLARED PER COMMON SHARE
   $ 0.26 $ 0.24    $ 0.78    $ 0.72












COMPREHENSIVE INCOME
   $ 27,637 $ 15,470    $ 84,873    $ 78,309

~~See Notes to Consolidated Financial Statements.~~

WESBANCO, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY


	For the Three Months Ended June 30, 2023 and 2022
																	Accumulated
	Preferred		Common Stock														Other			Deferred
(unaudited, in thousands, except	Stock		Shares					Capital			Retained			Treasury			Comprehensive			Benefits for
shares and per share amounts)	Amount		Outstanding			Amount		Surplus			Earnings			Stock			Income (Loss)			Directors			Total
March 31, 2023	$	144,484		59,246,569		$	141,834	$	1,636,061		$	1,096,924		$	(307,507	)	$	(234,399	)	$	(1,940	)	$	2,475,457
Net income		—		—			—		—			44,880			—			—			—			44,880
Other comprehensive loss		—		—			—		—			—			—			(30,228	)		—			(30,228	)
Comprehensive income		—		—			—		—			—			—			—			—			14,652
Common dividends declared ($0.35 per share)		—		—			—		—			(20,585	)		—			—			—			(20,585	)
Preferred dividends declared ($16.875 per share)		—		—			—		—			(2,531	)		—			—			—			(2,531	)
Stock issued for dividend reinvestment		—		15,180			—		—			(553	)		553			—			—			—
Treasury shares acquired		—		(161,306	)		—		—			—			(3,697	)		—			—			(3,697	)
Stock options exercised		—		1,050			—		(12	)		—			35			—			—			23
Restricted stock granted		—		253,569			—		(6,846	)		—			6,846			—			—			—
Stock compensation expense		—		—			—		1,749			—			—			—			—			1,749
Deferred benefits for directors - net		—		—			—		11			—			—			—			(81	)		(70	)
June 30, 2023	$	144,484		59,355,062		$	141,834	$	1,630,963		$	1,118,135		$	(303,770	)	$	(264,627	)	$	(2,021	)	$	2,464,998

March 31, 2022	$	144,484		60,613,414		$	141,834	$	1,636,705		$	998,315		$	(261,012	)	$	(111,312	)	$	(1,698	)	$	2,547,316
Net income		—		—			—		—			42,748			—			—			—			42,748
Other comprehensive loss		—		—			—		—			—			—			(64,749	)		—			(64,749	)
Comprehensive loss		—		—			—		—			—			—			—			—			(22,001	)
Common dividends declared ($0.34 per share)		—		—			—		—			(20,191	)		—			—			—			(20,191	)
Preferred dividends declared ($16.875 per share)		—		—			—		—			(2,531	)		—			—			—			(2,531	)
Stock issued for dividend reinvestment		—		4,115			—		—			(132	)		132			—			—			—
Treasury shares acquired		—		(1,116,472	)		—		—			—			(37,096	)		—			—			(37,096	)
Stock options exercised		—		33,525			—		(114	)		—			1,118			—			—			1,004
Restricted stock granted		—		164,206			—		(5,521	)		—			5,521			—			—			—
Stock compensation expense		—		—			—		1,551			—			—			—			—			1,551
Deferred benefits for directors - net		—		—			—		(4	)		—			—			—			(97	)		(101	)
June 30, 2022	$	144,484		59,698,788		$	141,834	$	1,632,617		$	1,018,209		$	(291,337	)	$	(176,061	)	$	(1,795	)	$	2,467,951

~~For the Nine Months Ended September 30, 2017 and 2016~~5

Common Stock Capital
Surplus Retained
Earnings Treasury
Stock Accumulated
Other
Comprehensive
(Loss) Income Deferred
Benefits for
Directors Total
(unaudited, in thousands, except shares
and per share amounts)
Shares
Outstanding Amount

December 31, 2016
43,931,715 $ 91,524 $ 680,507 $ 597,071 $ —   $ (27,126 ) $ (568 ) $ 1,341,408

Net income
—   —   —   78,584 —   —   —   78,584
Other comprehensive income
—   —   —   —   —   6,289 —   6,289

Comprehensive income
—   —   —   —   —   —   —   84,873
Common dividends declared ($0.78 per share)
—   —   —   (34,326 ) —   —   —   (34,326 )
Treasury shares acquired
(12,987 ) —   —   —   (488 ) —   —   (488 )
Stock options exercised
40,834 75 858 —   188 —   —   1,121
Issuance of restricted stock
74,023 154 (154 ) —   —   —   —   —
Stock compensation expense
—   —   1,970 —   —   —   —   1,970
Deferred benefits for directors- net
—   —   167 —   —   —   (167 ) —

September 30, 2017
44,033,585 $ 91,753 $ 683,348 $ 641,329 $ (300 ) $ (20,837 ) $ (735 ) $ 1,394,558

December 31, 2015
38,459,635 $ 80,304 $ 516,294 $ 549,921 $ (2,640 ) $ (20,954 ) $ (793 ) $ 1,122,132

Net income
—   —   —   62,417 —   —   —   62,417
Other comprehensive income
—   —   —   —   —   15,892 —   15,892

Comprehensive income
—   —   —   —   —   —   —   78,309
Common dividends declared ($0.72 per share)
—   —   —   (28,946 ) —   —   —   (28,946 )
Shares issued for acquisition
5,423,348 11,071 162,934 —   3,144 —   —   177,149
Treasury shares acquired
(130,041 ) —   56 —   (3,730 ) —   —   (3,674 )
Stock options exercised
31,541 2 (165 ) —   955 —   —   792
Issuance of restricted stock
76,400 —   (2,271 ) —   2,271 —   —   —
Stock compensation expense
—   —   1,389 —   —   —   —   1,389
Deferred benefits for directors- net
—   —   (230 ) —   —   —   230 —

September 30, 2016
43,860,883 $ 91,377 $ 678,007 $ 583,392 $ —   $ (5,062 ) $ (563 ) $ 1,347,151


	For the Six Months Ended June 30, 2023 and 2022
																	Accumulated
	Preferred		Common Stock														Other			Deferred
(unaudited, in thousands, except	Stock		Shares					Capital			Retained			Treasury			Comprehensive			Benefits for
shares and per share amounts)	Amount		Outstanding			Amount		Surplus			Earnings			Stock			Income (Loss)			Directors			Total
December 31, 2022	$	144,484		59,198,963		$	141,834	$	1,635,877		$	1,077,675		$	(308,964	)	$	(262,416	)	$	(1,828	)	$	2,426,662
Net income		—		—			—		—			87,221			—			—			—			87,221
Other comprehensive loss		—		—			—		—			—			—			(2,211	)		—			(2,211	)
Comprehensive income		—		—			—		—			—			—			—			—			85,010
Common dividends declared ($0.70 per share)		—		—			—		—			(41,145	)		—			—			—			(41,145	)
Preferred dividends declared ($16.875 per share)		—		—			—		—			(5,063	)		—			—			—			(5,063	)
Stock issued for dividend reinvestment				15,180								(553	)		553									—
Treasury shares acquired		—		(162,700	)		—		—			—			(3,749	)		—			—			(3,749	)
Stock options exercised		—		5,491			—		(46	)		—			172			—			—			126
Restricted stock granted		—		298,128			—		(8,218	)		—			8,218			—			—			—
Stock compensation expense		—		—			—		3,334			—			—			—			—			3,334
Deferred benefits for directors - net		—		—			—		16			—			—			—			(193	)		(177	)
June 30, 2023	$	144,484		59,355,062		$	141,834	$	1,630,963		$	1,118,135		$	(303,770	)	$	(264,627	)	$	(2,021	)	$	2,464,998

December 31, 2021	$	144,484		62,307,245		$	141,834	$	1,635,642		$	977,765		$	(199,759	)	$	(5,120	)	$	(1,680	)	$	2,693,166
Net income		—		—			—		—			86,870			—			—			—			86,870
Other comprehensive loss		—		—			—		—			—			—			(170,941	)		—			(170,941	)
Comprehensive loss		—		—			—		—			—			—			—			—			(84,071	)
Common dividends declared ($0.68 per share)		—		—			—		—			(40,726	)		—			—			—			(40,726	)
Preferred dividends declared ($16.875 per share)		—		—			—		—			(5,063	)		—			—			—			(5,063	)
Stock issued for dividend reinvestment		—		18,646			—		—			(637	)		637			—			—			—
Treasury shares acquired		—		(2,841,043	)		—		—			—			(99,420	)		—			—			(99,420	)
Stock options exercised		—		49,734			—		(306	)		—			1,684			—			—			1,378
Restricted stock granted		—		164,206			—		(5,521	)		—			5,521			—			—			—
Stock compensation expense		—		—			—		2,792			—			—			—			—			2,792
Deferred benefits for directors - net		—		—			—		10			—			—			—			(115	)		(105	)
June 30, 2022	$	144,484		59,698,788		$	141,834	$	1,632,617		$	1,018,209		$	(291,337	)	$	(176,061	)	$	(1,795	)	$	2,467,951

See Notes to Consolidated Financial Statements.

WESBANCO, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS


	For the Six Months Ended June 30,
(unaudited, in thousands)	2023			2022
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	57,941		$	85,795
INVESTING ACTIVITIES
Net increase in loans held for investment		(427,264	)		(465,440	)
Available-for-sale debt securities:
Proceeds from sales		28,317			—
Proceeds from maturities, prepayments and calls		167,849			344,948
Purchases of securities		(2,500	)		(446,268	)
Held-to-maturity debt securities:
Proceeds from maturities, prepayments and calls		22,929			50,295
Purchases of securities		—			(328,238	)
Proceeds from bank owned life insurance		2,306			7,816
Purchases of premises and equipment – net		(16,916	)		(2,807	)
Net cash used in investing activities		(225,279	)		(839,694	)
FINANCING ACTIVITIES
(Decrease) increase in deposits		(269,018	)		4,596
Proceeds from Federal Home Loan Bank borrowings		1,380,000			—
Repayment of Federal Home Loan Bank borrowings		(705,000	)		(61,318	)
(Decrease) increase in other short-term borrowings		(33,783	)		6,071
Principal repayments of finance lease obligations		(1,148	)		(214	)
Issuance of subordinated debt, net of issuance costs		—			147,655
Dividends paid to common shareholders		(41,120	)		(41,135	)
Dividends paid to preferred shareholders		(5,063	)		(5,063	)
Treasury shares purchased - net		(3,623	)		(98,042	)
Net cash provided by (used in) financing activities		321,245			(47,450	)
Net increase (decrease) in cash, cash equivalents and restricted cash		153,907			(801,349	)
Cash, cash equivalents and restricted cash at beginning of the period		408,411			1,251,358
Cash, cash equivalents and restricted cash at end of the period	$	562,318		$	450,009
SUPPLEMENTAL DISCLOSURES
Interest paid on deposits and other borrowings	$	86,623		$	10,484
Income taxes paid		24,240			15,190
Transfers of loans to other real estate owned		147			87

   For the Nine Months Ended
September 30,
(unaudited, in thousands)
   2017 2016
NET CASH PROVIDED BY OPERATING ACTIVITIES
   $ 93,506 $ 89,175


INVESTING ACTIVITIES

Net increase in loans held for investment
   (122,332 ) (160,654 )
Securitiesavailable-for-sale:

Proceeds from sales
   7,760 277,225
Proceeds from maturities, prepayments and calls
   156,944 214,786
Purchases of securities
   (225,404 ) (171,169 )
Securitiesheld-to-maturity:

Proceeds from maturities, prepayments and calls
   90,457 72,859
Purchases of securities
   (53,251 ) (34,530 )
Proceeds from bank-owned life insurance
   349 19
Cash received to acquire a business, net
   —   4,863
Purchases of premises and equipment – net
   (6,223 ) (3,894 )


Net cash (used in) provided by investing activities
   (151,700 ) 199,505


FINANCING ACTIVITIES

Increase (decrease) in deposits
   61,389 (123,708 )
Proceeds from Federal Home Loan Bank borrowings
   560,000 —
Repayment of Federal Home Loan Bank borrowings
   (513,911 ) (112,116 )
Increase in other short-term borrowings
   20,200 6,832
Decrease in federal funds purchased
   (54,000 ) —
Dividends paid to common shareholders
   (33,416 ) (27,277 )
Issuance of common stock
   991 2
Treasury shares purchased – net
   (358 ) (2,966 )


Net cash provided by (used in) financing activities
   40,895 (259,233 )


Net (decrease) increase in cash and cash equivalents
   (17,299 ) 29,447
Cash and cash equivalents at beginning of the period
   128,170 86,685


Cash and cash equivalents at end of the period
   $ 110,871 $ 116,132


SUPPLEMENTAL DISCLOSURES

Interest paid on deposits and other borrowings
   $ 29,857 $ 24,141
Income taxes paid
   20,825 17,925
Transfers of loans to other real estate owned
   506 3,368
Non-cash transactions related to the YCB acquisition
   —   177,149

See Notes to Consolidated Financial Statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation —The accompanying unaudited interim financial statements of ~~WesBanco,~~Wesbanco, Inc. and its consolidated subsidiaries (“~~WesBanco”~~Wesbanco”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form10-Q and Article 10 of RegulationS-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form10-K for the year ended December 31, ~~2016.~~2022.

~~WesBanco’s~~Wesbanco’s interim financial statements have been prepared following the significant accounting policies disclosed in Note 1 of the Notes to the Consolidated Financial Statements of its ~~2016~~2022 Annual Report on Form10-K filed with the Securities and Exchange ~~Commission.~~Commission, as well as with the policy changes indicated below. In the opinion of management, the accompanying interim financial information reflects all adjustments, including normal recurring adjustments, necessary to present fairly ~~WesBanco’s~~Wesbanco’s financial position and results of operations for each of the interim periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation. Such reclassifications had no impact on Wesbanco’s net income and shareholders’ equity. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year.

Modifications for Borrowers Experiencing Financial Difficulty (“MBEFD”) — A modification of a loan for borrowers experiencing financial difficulty is applicable when the loan modification results in a direct change in the timing or amount of contractual cash flows. The most common modifications provided to borrowers experiencing financial difficulty are expected to occur in the form of principal forgiveness, interest rate reductions, other-than-insignificant-payment delays, or term extensions under ASC 310-10-50-39. Upon Wesbanco's adoption of Accounting Standards Update (“ASU”) 2022-02 on January 1, 2023, Troubled Debt Restructuring ("TDR") accounting was prospectively discontinued and economic concessions for modifications occurring on or after the adoption date are no longer measured. This accounting also results in the elimination of any existing economic concession related to a loan that was previously designated as a TDR if such loan is restructured on or after January 1, 2023. Due to the elimination of economic concessions under ASU 2022-02, the standard may result in modified loans being subject to the new disclosures that would have not been considered concessions and not treated as TDRs.

When determining whether a debtor is experiencing financial difficulties, consideration is given to any known default on any of its debt or whether it is probable that the debtor would be in payment default in the foreseeable future without the modification. Other indicators of financial difficulty include whether the debtor has declared or is in the process of declaring bankruptcy, the debtor’s ability to continue as a going concern, or the debtor’s projected cash flow to service its debt (including principal & interest) in accordance with the contractual terms for the foreseeable future, without a modification. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of that collateral is considered in determining whether the principal will be paid.

The modification of a loan does not increase the allowance or provision for credit losses unless the loan is extended, or the loans are commercial loans that are individually evaluated for impairment, in which case a specific reserve is established pursuant to GAAP. Portfolio segment loss history is the primary factor for establishing the allowance for residential real estate, home equity and consumer MBEFDs.

Non-accrual loans that are restructured remain on non-accrual, but may move to accrual status after they have performed according to the restructured terms for a period of time. MBEFDs on accrual status generally remain on accrual as long as they continue to perform in accordance with their modified terms. MBEFDs may also be placed on non-accrual if they do not perform in accordance with the restructured terms. Loans may be removed from MBEFD status after they have performed according to the renegotiated terms for a period of time.

Recent accounting ~~pronouncements —~~ ~~In August 2017, the~~pronouncements—The Financial Accounting Standards Board (“FASB”) issued Accounting Standards ~~Update~~Updates (“ASU”)~~No. 2017-12~~ ~~“Derivatives~~ as noted below.

ASU 2023-02 – Investments Equity Method and ~~Hedging~~Joint Ventures (Topic 815), Targeted Improvements to Accounting for Hedging Activities.” The new guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. WesBanco is assessing the impact of ASU~~2017-12~~ ~~and does not expect it to have a material impact on WesBanco’s Consolidated Financial Statements.~~323)

In ~~May 2017,~~March 2023, the FASB issued ASU~~No. 2017-09~~ ~~that provides guidance on determining which changes~~ 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. ASU 2023-02 allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the ~~terms~~related income tax credits. The ASU’s amendments “remove the specialized guidance for [low-income-housing tax credit] investments that are not accounted for using the proportional amortization method and ~~conditions of share-based payment awards~~instead require ~~an entity to apply modification accounting under Topic 718. The~~that those LIHTC investments be accounted for using the guidance isin other [GAAP].” For Wesbanco, the amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The amendments should be applied on a prospective basis to an award modified on or after the adoption date. WesBanco is assessing the impact of ASU~~2017-09~~ ~~and does not expect it to have a material impact on WesBanco’s Consolidated Financial Statements.~~

~~In March 2017, FASB issued ASU2017-08~~ that shortens the amortization period of certain callable debt securities held at a premium. The premium is required to be amortized to the earliest call date. Securities held at a discount continue to be amortized to maturity. Public business entities must apply the new requirements for fiscal years beginning after December 15, ~~2018,~~2023, including interim periods within those fiscal ~~years, which for WesBanco will be effective for the fiscal year beginning January 1, 2019. Early adoption is permitted.~~years. The adoption of this pronouncement is not expected to have a material impact on ~~WesBanco’s~~the Consolidated Financial Statements.

ASU 2023-01 - Leases (Topic 842): Common Control Arrangements

In March ~~2017,~~2023, the FASB issued ASU~~2017-07~~ 2023-01, Leases (Topic 842): Common Control Arrangements. ASU 2023-01 amends certain provisions of ASC 842 that ~~changes how an employer presents~~apply to arrangements between related parties under common control. Additionally, ASU 2023-01 amends the ~~net periodic benefit cost~~accounting for leasehold improvements in ~~the income statement~~common-control arrangements for an employer-sponsored defined benefit pension and/or other postretirement benefit plans. Employers will present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. Employers will present the other components of the net periodic benefit cost separately from the line items that includes the service cost outside of any subtotal of operating income, if one is presented. These components will not be eligible for capitalization in assets.all entities. For ~~public business entities,~~Wesbanco, the amendments ~~in this update~~ are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual period (i.e., only in the first interim period). For WesBanco, this update will be effective for the fiscal year beginning January 1, 2018. Upon adoption, WesBanco will reclassify the service cost component from employee benefits to salaries and wages, which are both components of~~non-interest~~ ~~expense. The service cost component for the three and nine months ending September 30, 2017 was $0.7 million and $1.9 million, respectively.~~

~~In January 2017, the FASB issued ASU2017-04~~ that eliminated the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. Public business entities that are a U.S. Securities and Exchange Commission filer should adopt this update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, ~~2019, which for WesBanco will be effective for the~~2023, including interim periods within those fiscal ~~year beginning January 1, 2020.~~years. Early adoption is ~~permitted.~~permitted in any annual or interim period as of the beginning of the related fiscal year. The adoption of this pronouncement is not expected to have a material impact on ~~WesBanco’s~~the Consolidated Financial Statements.

ASU 2022-04 Liabilities – Supplier Finance Programs (Sub-topic 405-50)

In ~~January 2017,~~September 2022, the FASB issued ASU~~No. 2017-01,~~ 2022-04, “Liabilities—Supplier Finance Programs (Subtopic 405-50).” The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs. For Wesbanco, this update was effective beginning on January 1, 2023, except for the amendment on rollforward information, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU~~2017-01~~ ~~will be~~is effective for ~~fiscal years, and interim periods within those~~ fiscal years beginning after December 15, ~~2017, which for WesBanco will be effective for the fiscal year beginning January 1, 2018. WesBanco is currently evaluating the potential impact of ASU2017-01~~ ~~but it is not expected that the~~2023. The adoption of this ~~new standard will have a material impact on WesBanco’s Consolidated Financial Statements.~~

~~In October 2016, the FASB issued ASU2016-16~~ that provides the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Current guidance prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This prohibition on recognition is an exception to the principle of comprehensive recognition of current and deferred income taxes in generally accepted accounting principles. The exception has led to diversity in practice and is a source of complexity in financial reporting. FASB decided that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this update eliminate the exception for an intra-entity transfer of an asset other than inventory. The amendments in this update do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. For public business entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, which for WesBanco will be effective for the fiscal year beginning January 1, 2018. The amendments in this update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of thisfull pronouncement is not expected to have a material impact on ~~WesBanco’s~~the Consolidated Financial Statements.

ASU 2022-03 Fair Value Measurement (Topic 820)

In ~~August 2016,~~June 2022, the FASB issued ASU~~2016-15~~ 2022-03, "Fair Value Measurement (Topic 820).” The amendments in this ASU clarify that ~~provides guidance for the classification of cash flows related to (1) debt prepayment or extinguishment costs, (2) settlement ofzero-coupon~~ ~~debt instruments or other debt instruments with coupon rates that are insignificant in relation to the effective interest rate~~a contractual restriction on the ~~borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement~~sale of ~~insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, (6) distributions received from~~an equity ~~method investees, (7) beneficial interests in securitization transactions and (8) separately identifiable cash flows and application~~security is not considered part of the ~~predominance principle. Public business entities must apply~~unit of account of the ~~new requirements~~equity security, and therefore, is not considered in measuring fair value. Furthermore, the amendments to this ASU clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The update to this ASU requires the following disclosures for equity securities: (1) the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet; (2) the nature and remaining duration of the restriction(s) and; (3) the circumstances that could cause a lapse in the restriction(s). The amendments in this Update are effective for fiscal years beginning after December 15, ~~2017, including~~2023, and interim periods within those fiscal ~~years, which for WesBanco will be effective for~~years. Wesbanco is currently assessing the ~~fiscal year beginning January 1, 2018. Early adoption is permitted. The adoption~~impact of ~~this pronouncement is not expected to have a material impact~~ASU 2022-03 on ~~WesBanco’s~~its Consolidated Financial Statements.

ASU 2022-02 Financial Instruments - Credit Losses (Topic 326)

In ~~June 2016,~~March 2022, the FASB issued ASU~~2016-13~~ ~~that will require entities~~ 2022-02, "Financial Instruments - Credit Losses (Topic 326)." The amendments in this ASU eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, "Receivables - Troubled Debt Restructurings by Creditors," while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to ~~use~~determine whether a modification results in a new ~~forward-looking “expected loss” model on trade and other receivables,held-to-maturity~~ ~~debt securities, loans and other instruments~~loan or a continuation of an existing loan. In addition, for public business entities, the amendments in this Update require that ~~generally will result in the earlier recognition of allowances for credit losses. Foravailable-for-sale~~ debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. Entities will have toan entity disclose ~~significantly more information, including information they use to track credit quality~~current-period gross writeoffs by year of origination for ~~most~~ financing ~~receivables. Public business entities must apply~~receivables and net investments in leases within the ~~new requirements for fiscal years~~scope of Subtopic 326-20, "Financial Instruments - Credit Losses - Measured at Amortized Cost." For Wesbanco, this update was effective beginning ~~after December 15, 2019, including interim periods within those fiscal years, which for WesBanco will be effective for the fiscal year beginning~~ on January 1, 2020. Early adoption is permitted for fiscal years beginning after December 15, 2018. WesBanco is currently evaluating the impact of the adoption of this pronouncement on WesBanco’s Consolidated Financial Statements.

~~In March 2016, the FASB issued ASU2016-09~~ that will require all excess income tax benefits or tax deficiencies of stock awards to be recognized in the income statement when the awards vest or are settled. It also will allow an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years.2023. The adoption of this pronouncement did not have a material impact on ~~WesBanco’s~~the Consolidated Financial Statements.

For the additional disclosure requirements in this ASU, please refer to the MBEFD policy above and Footnote 4, "Loans and the Allowance for Credit Losses."

ASU 2020-04, ASU 2021-01 and ASU 2022-06 Reference Rate Reform (Topic 848)

In March ~~2016,~~2020, the FASB issued ASU~~2016-07~~ 2020-04, “Reference Rate Reform (Topic 848).” This ASU provided temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the London Interbank Offered Rate ("LIBOR") or other reference rate expected to be discontinued on financial reporting. The ASU also provides optional expedients for contract modifications that ~~eliminates~~replace a reference rate affected by reference rate reform. The guidance is effective as of March 12, 2020 through December 31, 2022, and can be adopted at any time during this period. In January 2021, the ~~requirement~~FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” This ASU refines the scope of Topic 848 and addresses questions about whether Topic 848 can be applied to ~~retrospectively~~derivative instruments that do not reference a rate that is expected to be discontinued, but that use an interest rate for margining, discounting or contract price alignment that is expected to be modified as a result of reference rate reform. ASU 2021-01 is effective upon issuance through December 31, 2024, and can be adopted at any time during this period. Wesbanco has not offered LIBOR for any new contracts after December 31, 2021. Wesbanco has chosen the One Month Term Secured Overnight Financing Rate ("1M Term SOFR") as its alternative replacement rate for LIBOR on both back-to-back swaps and on one-month variable loans. A transition plan was implemented in 2021 to identify and modify Wesbanco's loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848.” In the Update, the Board decided to defer the sunset date of Topic 848 to December 31, 2024, to permit entities to apply the ~~equity method~~guidance in ~~previous periods when an investor initially obtains significant influence over an investee.~~Topic 848 through the expected cessation date of USD LIBOR. In the Board’s view, that time frame would have been sufficient to provide flexibility for additional unforeseen changes to the timeline of USD LIBOR cessation and to accommodate global interbank offered rate (IBOR) transition. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2016, and requires prospective adoption. Early adoption is permitted. The adoption of this pronouncement did not have a material impact on ~~WesBanco’s~~Wesbanco’s Consolidated Financial Statements.

~~In February 2016, the FASB issued ASU2016-02~~ that will require entities to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases were not previously recognized in the balance sheet. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. WesBanco is currently evaluating the impact of the adoption of this pronouncement on WesBanco’s Consolidated Financial Statements.9

~~In January 2016, the FASB issued ASU2016-01~~ that will require entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. The standard does not change the guidance for classifying and measuring investments in debt securities and loans. Entities will have to record changes in instrument-specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact on WesBanco’s Consolidated Financial Statements.

~~In May 2014, the FASB issued ASU2014-09~~ related to the recognition of revenue from contracts with customers. The new revenue pronouncement creates a single source of revenue guidance for all companies in all industries and is more principles-based than current revenue guidance. The pronouncement provides a five-step model for a company to recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The five steps are, (1) identify the contract with the customer, (2) identify the separate performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the separate performance obligations and (5) recognize revenue when each performance obligation is satisfied. On July 9, 2015, the FASB approved a~~one-year~~ deferral of the effective date of the update. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. Early adoption is now permitted as of the original effective date for interim and annual reporting periods in fiscal years beginning after December 15, 2016. In March 2016, the FASB issued ASU~~2016-08,~~ ~~which amends the principle versus agent guidance in the revenue standard. In April 2016, the FASB issued ASU2016-10,~~ ~~which clarifies when promised goods or services are separately identifiable in the revenue standard. In May 2016, FASB issued ASU2016-12,~~ which provides narrow-scope improvements and practical expedients to the revenue standard. While WesBanco is currently evaluating the impact of this standard on individual customer contracts, management has evaluated the impact of this standard on the broad categories of its customer contracts and revenue streams. WesBanco currently anticipates this standard will not have a material impact on its Consolidated Financial Statements because revenue related to financial instruments, including loans and investment securities are not in scope of these updates. Loan interest income, investment interest income, insurance services revenue and bank-owned life insurance are accounted for under other U.S. GAAP standards and are therefore, out of scope of the ASC 606 revenue standard. Trust fees, service charges on deposits, electronic banking fees, net securities brokerage revenue, net gains on sales of mortgage loans, and net gain on other real estate owned and other assets are in scope of the ASC 606 revenue standard. Management has substantially completed evaluating revenue contracts, as well as identifying WesBanco’s customers, performance obligations and material revenue streams. For revenue streams evaluated to date, no changes have been identified as to the timing of revenue recognition. The Company plans to adopt the revenue recognition standard under the modified retrospective approach as of January 1, 2018.

~~In January 2014, the FASB issued ASUNo. 2014-01,~~ which applies to all reporting entities that invest in qualified affordable housing projects through limited liability entities. The pronouncement permits reporting entities to make an accounting policy election to account for these investments using the proportional amortization method if certain conditions exist. The pronouncement also requires disclosure that enables users of its financial statements to understand the nature of these investments in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The pronouncement is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. WesBanco made an accounting policy election to adopt the ASU in the first quarter of 2017. With the adoption of this pronouncement, WesBanco now classifies the amortization of the investment as a component of income tax expense (benefit). The amount for the three and nine months ending September 30, 2017 was $0.4 million and $1.2 million, respectively, which is included in income tax expense within WesBanco’s Consolidated Financial Statements.

NOTE 2. ~~MERGERS AND ACQUISITIONS~~

~~On September 9, 2016, WesBanco completed its acquisition of Your Community Bankshares, Inc. (“YCB”), and itswholly-owned~~ banking subsidiary, Your Community Bank (“YCB Bank”), an Indiana state-chartered commercial bank headquartered in New Albany, Indiana. The transaction expanded WesBanco’s franchise into Kentucky and southern Indiana.

On the acquisition date, YCB had $1.5 billion in total assets, excluding goodwill, including $1.0 billion in loans and $173.2 million in securities. The YCB acquisition was valued at $220.5 million, based on WesBanco’s closing stock price on September 9, 2016 of $32.62, and resulted in WesBanco issuing 5,423,348 shares of its common stock and $43.3 million in cash in exchange for all of the outstanding shares of YCB common stock. The assets and liabilities of YCB were recorded on WesBanco’s balance sheet at their fair value as of September 9, 2016, the acquisition date, and YCB’s results of operations have been included in WesBanco’s Consolidated Statements of Income since that date. Based on the final purchase price allocation, WesBanco recorded $93.0 million in goodwill and $12.0 million in core deposit intangibles in its Community Banking segment, representing the principal change in goodwill and intangibles in 2016. None of the goodwill is deductible for income tax purposes, as the acquisition is accounted for as a~~tax-free~~ ~~exchange for tax purposes.~~

For the nine months ended September 30, 2017 and for the twelve months ended December 31, 2016, WesBanco recorded merger-related expenses of $0.5 million and $13.3 million, respectively, associated with the YCB acquisition.

~~The final purchase price of the YCB acquisition and resulting goodwill is summarized as follows:~~

(unaudited, in thousands)
   September 9, 2016
Purchase Price:

Fair value of WesBanco shares issued
   $ 177,149
Cash consideration for outstanding YCB shares
   43,349


Total purchase price
   $ 220,498
Fair value of:

Tangible assets acquired
   $ 1,398,183
Core deposit and other intangible assets acquired
   11,957
Liabilities assumed
   (1,330,887 )
Net cash received in the acquisition
   48,212


Fair value of net assets acquired
   $ 127,465


Goodwill recognized
   $ 93,033

~~The following table presents the allocation of the purchase price of the assets acquired and the liabilities assumed at the date of acquisition.~~

(unaudited, in thousands)
   September 9, 2016
Assets acquired

Cash and due from banks
   $ 48,212
Securities
   173,223
Loans
   1,012,410
Goodwill and other intangible assets
   104,990
Accrued income and other assets (1)
   212,550


Total assets acquired
   $ 1,551,385


Liabilities assumed

Deposits
   $ 1,193,010
Borrowings
   123,001
Accrued expenses and other liabilities
   14,876


Total liabilities assumed
   1,330,887


Net assets acquired
   $ 220,498

⁽¹⁾	~~Includes receivables of $105.8 million from the sale ofavailable-for-sale~~ ~~securities prior to the acquisition date.~~

There were no adjustments to the allocation of the purchase price of the assets acquired and the liabilities assumed during the third quarter of 2017. The following table presents the changes in the allocation of the purchase price of the assets acquired and the liabilities assumed at the date of the acquisition previously reported as of December 31, 2016:

(unaudited, in thousands)
   September 9, 2016
Goodwill recognized as of December 31, 2016
   $ 92,889
Change in fair value of net assets acquired:

Assets

Loans
   (1,156 )
Accrued income and other assets
   743
Liabilities

Borrowings
   —
Accrued expenses and other liabilities
   269


Fair value of net assets acquired
   $ (144 )


Increase in goodwill recognized
   144


Goodwill recognized as of September 30, 2017
   $ 93,033

~~NOTE 3.~~ EARNINGS PER COMMON SHARE

Earnings per common share are calculated as follows:


									For the Three Months Ended June 30,				For the Six Months Ended June 30,
*(unaudited, in thousands, except shares* *and per share amounts)*	For the Three Months Ended September 30,				For the Nine Months Ended September 30,				2023		2022		2023		2022
	2017		2016		2017		2016
Numerator for both basic and diluted earnings per common share:
Net income	$	26,356	$	17,435	$	78,584	$	62,417

Net income available to common shareholders									$	42,349	$	40,217	$	82,158	$	81,807
Denominator:
Total average basic common shares outstanding		44,031,813		39,715,516		43,992,017		38,828,618		59,263,949		60,036,103		59,240,958		60,736,858
Effect of dilutive stock options and other stock compensation		55,068		27,775		67,452		26,835		121,898		149,104		148,356		162,412

Total diluted average common shares outstanding		44,086,881		39,743,291		44,059,469		38,855,453		59,385,847		60,185,207		59,389,314		60,899,270

Earnings per common share – basic	$	0.60	$	0.44	$	1.79	$	1.61
Earnings per common share – diluted	$	0.60	$	0.44	$	1.78	$	1.61

Earnings per common share - basic									$	0.71	$	0.67	$	1.39	$	1.35
Earnings per common share - diluted									$	0.71	$	0.67	$	1.38	$	1.34

~~Options~~

As of June 30, 2023 and 2022, 603,767 and 524,211 options to purchase ~~117,550~~ shares ~~and 96,600 shares at September 30, 2017 and 2016, respectively,~~ were not included in the ~~computation of net income per~~ diluted share computation for the three and six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively, because the exercise price was greater than the average market price of ~~the~~a common ~~shares~~share, and, therefore, the effect would be antidilutive. ~~All options~~

As of June 30, 2023, an aggregate of 37,296 contingently issuable shares were estimated to ~~purchase~~be awarded under the 2022 and 2021 total shareholder return ("TSR") plans, as stock performance targets had been met as of such date and therefore those shares were included in the ~~nine months ended September 30, 2017 computation of net income per~~ diluted ~~share. Options~~calculation. No shares related to ~~purchase 185,250 shares~~the 2023 plan were ~~not~~ included in the computation of net income per diluted share for the nine months ended September 30, 2016 because the exercise price was greater than the average market price of the common shares and, therefore, the effect would be antidilutive.

As of September 30, 2017, 28,502 shares of market and performance-based restricted stock were not included in the computation of net income per diluted share for the three and nine months ended September 30, 2017 because the effect would be antidilutive. ~~There~~As of June 30, 2022, 34,656 contingently issuable shares were ~~no antidilutive~~estimated to be awarded under the 2022 and 2021 TSR plans, as stock performance targets had been met as of such date and therefore those shares were included in the diluted calculation. As of June 30, 2022, the shares related to the 2020 TSR plan were not included in the calculation because they had not met performance measures and the effect would be antidilutive.

In addition, performance-based restricted stock ~~excluded from the computation of net income for the three or nine months ended September 30, 2016.~~

~~On September 9, 2016, WesBanco issued 5,423,348 shares of common stock (109,257 of which~~("PBRS") compensation totaling 68,767 and 62,314 shares were ~~treasury stock)~~estimated to ~~complete its acquisition~~be awarded as of ~~YCB. These shares are included in average shares outstanding beginning on that date. For additional information relating to the YCB acquisition, refer to Note 2, “Mergers~~June 30, 2023 and ~~Acquisitions.”~~June 30, 2022, respectively.

NOTE 4.3. SECURITIES

The following table presents the fair value and amortized cost ofavailable-for-sale andheld-to-maturity debt securities:

   September 30, 2017    December 31, 2016
(unaudited, in thousands)
   Amortized
Cost    Gross
Unrealized
Gains    Gross
Unrealized
Losses Estimated
Fair
Value    Amortized
Cost    Gross
Unrealized
Gains    Gross
Unrealized
Losses Estimated
Fair
Value
Available-for-sale

U.S. Government sponsored entities and agencies
   $ 72,672    $ 88    $ (441 ) $ 72,319    $ 54,803    $ 3    $ (763 ) $ 54,043
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies
   974,370    776    (11,672 ) 963,474    953,475    884    (16,070 ) 938,289
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies
   122,908    77    (1,151 ) 121,834    98,922    27    (2,139 ) 96,810
Obligations of states and political subdivisions
   104,228    3,187    (568 ) 106,847    110,208    3,114    (1,659 ) 111,663
Corporate debt securities
   35,249    325    (71 ) 35,503    35,292    117    (108 ) 35,301












Total debt securities
   $ 1,309,427    $ 4,453    $ (13,903 ) $ 1,299,977    $ 1,252,700    $ 4,145    $ (20,739 ) $ 1,236,106
Equity securities
   4,238    1,320    (3 ) 5,555    4,062    1,032    (24 ) 5,070












Totalavailable-for-sale securities
   $ 1,313,665    $ 5,773    $ (13,906 ) $ 1,305,532    $ 1,256,762    $ 5,177    $ (20,763 ) $ 1,241,176












Held-to-maturity

U.S. Government sponsored entities and agencies
   $ 12,128    $ —      $ (254 ) $ 11,874    $ 13,394    $ —      $ (414 ) $ 12,980
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies
   178,429    763    (1,467 ) 177,725    215,141    1,279    (2,563 ) 213,857
Obligations of states and political subdivisions
   801,760    20,153    (1,200 ) 820,713    805,019    15,652    (5,529 ) 815,142
Corporate debt securities
   33,371    1,065    —   34,436    34,413    418    (20 ) 34,811












Totalheld-to-maturity securities
   $ 1,025,688    $ 21,981    $ (2,921 ) $ 1,044,748    $ 1,067,967    $ 17,349    $ (8,526 ) $ 1,076,790












Total
   $ 2,339,353    $ 27,754    $ (16,827 ) $ 2,350,280    $ 2,324,729    $ 22,526    $ (29,289 ) $ 2,317,966

~~Trading~~

June 30, 2023

December 31, 2022

(unaudited, in thousands)

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair
Value

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair
Value

Available-for-sale debt securities

U.S. Government sponsored entities and agencies

$
246,526

$
—

$
(34,575
)

$
211,951

$
259,418

$
2

$
(33,450
)

$
225,970

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

2,023,958

17

(302,088
)

1,721,887

2,144,015

25

(297,987
)

1,846,053

Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

313,521

—

(8,279
)

305,242

359,811

—

(10,080
)

349,731

Obligations of states and political subdivisions

82,146

113

(3,828
)

78,431

96,081

244

(4,097
)

92,228

Corporate debt securities

11,956

—

(245
)

11,711

15,451

—

(293
)

15,158

Total available-for-sale debt securities

$
2,678,107

$
130

$
(349,015
)

$
2,329,222

$
2,874,776

$
271

$
(345,907
)

$
2,529,140

Held-to-maturity debt securities

U.S. Government sponsored entities and agencies

$
3,887

$
—

$
(404
)

$
3,483

$
4,357

$
—

$
(416
)

$
3,941

Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies

42,371

—

(3,796
)

38,575

45,909

—

(3,809
)

42,100

Obligations of states and political subdivisions

1,157,889

354

(147,762
)

1,010,481

1,177,986

577

(159,975
)

1,018,588

Corporate debt securities

20,323

—

(633
)

19,690

20,377

—

(616
)

19,761

Total held-to-maturity debt securities (1)

$
1,224,470

$
354

$
(152,595
)

$
1,072,229

$
1,248,629

$
577

$
(164,816
)

$
1,084,390

Total debt securities

$
3,902,577

$
484

$
(501,610
)

$
3,401,451

$
4,123,405

$
848

$
(510,723
)

$
3,613,530

(1)

Total held-to-maturity debt securities are presented on the balance sheet net of their allowance for credit losses totaling $0.2 million at June 30, 2023 and December 31, 2022, respectively.

At June 30, 2023 and December 31, 2022, there were no holdings of any one issuer, other than U.S. government sponsored entities and its agencies, in an amount greater than 10% of Wesbanco’s shareholders’ equity. Equity securities, of which $9.4 million consist of investments in various mutual funds held in grantor trusts formed in connection with the Company’s deferred compensation plan, are recorded at fair value, and totaled ~~$7.9~~$11.9 million and ~~$7.1~~$11.5 million at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, respectively.

At September 30, 2017 and December 31, 2016, there were no holdings of any one issuer, other than U.S. government sponsored entities and its agencies, in an amount greater than 10% of WesBanco’s shareholders’ equity.

The following table presents the amortized cost and fair value ofavailable-for-sale andheld-to-maturity debt securities by contractual maturity date at ~~September~~June 30, ~~2017. In some instances, the issuers~~2023. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay debt obligations with or without ~~penalty prior to~~prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are classified in the table below based on their contractual maturity ~~date.~~date; however, regular principal payments and prepayments of principal are received on a monthly basis.

   September 30, 2017
   One Year    One to    Five to    After    Mortgage-backed
(unaudited, in thousands)
   or less    Five Years    Ten Years    Ten Years    and Equity    Total
Available-for-sale

U.S. Government sponsored entities and agencies
   $ —      $ 11,967    $ 16,855    $ 6,908    $ 36,589    $ 72,319
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies⁽¹⁾
   —      —      —      —      963,474    963,474
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies⁽¹⁾
   —      —      —   �� —      121,834    121,834
Obligations of states and political subdivisions
   7,723    17,886    36,514    44,724    —      106,847
Corporate debt securities
   —      30,483    5,020    —      —      35,503
Equity securities⁽²⁾
   —      —      —      —      5,555    5,555












Totalavailable-for-sale securities
   $ 7,723    $ 60,336    $ 58,389    $ 51,632    $ 1,127,452    $ 1,305,532












Held-to-maturity⁽³⁾

U.S. Government sponsored entities and agencies
   $ —      $ —      $ —      $ —      $ 11,874    $ 11,874
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies⁽¹⁾
   —      —      —      —      177,725    177,725
Obligations of states and political subdivisions
   4,703    88,402    412,322    315,286    —      820,713
Corporate debt securities
   —      2,804    31,632    —      —      34,436












Totalheld-to-maturity securities
   $ 4,703    $ 91,206    $ 443,954    $ 315,286    $ 189,599    $ 1,044,748












Total
   $ 12,426    $ 151,542    $ 502,343    $ 366,918    $ 1,317,051    $ 2,350,280


(unaudited, in thousands)	Amortized Cost		Fair Value
Available-for-sale debt securities
Within one year	$	26,813	$	26,470
After 1 year through 5 years		130,304		125,997
After 5 years through 10 years		395,725		374,036
After 10 years		2,125,265		1,802,719
Total available-for-sale debt securities	$	2,678,107	$	2,329,222
Held-to-maturity debt securities
Within one year	$	18,112	$	18,003
After 1 year through 5 years		112,213		110,347
After 5 years through 10 years		411,700		383,357
After 10 years		682,445		560,522
Total held-to-maturity debt securities	$	1,224,470	$	1,072,229
Total debt securities	$	3,902,577	$	3,401,451

⁽¹⁾	~~Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds.~~

⁽²⁾	~~Equity securities, which have no stated maturity, are not assigned a maturity category.~~

⁽³⁾	~~Theheld-to-maturity~~ ~~portfolio is carried at an amortized cost of $1.0 billion.~~

Securities with an aggregate fair ~~values~~value of ~~$1.4~~$1.9 billion and ~~$1.2~~$2.1 billion at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, respectively, were pledged as security for public and trust funds, and securities sold under agreements to repurchase. Proceeds from the sale ofavailable-for-sale securities ~~were $7.8~~for the six months ended June 30, 2023 and 2022 totaled $28.3 million and ~~$277.2~~$0 million, ~~for the nine months ended September 30, 2017 and 2016,~~ respectively. Net unrealized losses onavailable-for-sale securities included in accumulated other comprehensive income, net of tax, as of ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022 were ~~$5.1~~$264.2 million and ~~$9.9~~$261.8 million, respectively.

The following table presents the gross realized gains and losses on sales and calls ofavailable-for-sale andheld-to-maturity debt securities, as well as gains and losses on equity securities from both sales and market adjustments, for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively. ~~Gains~~All gains and losses ~~due to fair value fluctuations on trading securities~~presented in the table below are included in~~non-interest~~ the net securities gains (losses) line item of the income ~~under other~~statement. For those equity securities relating to the key officer and director deferred compensation plan, the corresponding change in the obligation to the participant is recognized in employee benefits expense.


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(unaudited, in thousands)	2023			2022			2023			2022
Debt securities:
Gross realized gains	$	2		$	107		$	65		$	138
Gross realized losses		(9	)		(9	)		(206	)		(11	)
Net (losses) gains on debt securities		(7	)		98			(141	)		127
Equity securities:
Net unrealized gains (losses) recognized on securities still held		212			(1,281	)		491			(1,959	)
Net securities gains (losses)	$	205		$	(1,183	)	$	350		$	(1,832	)

The corporate and municipal bonds in Wesbanco’s held-to-maturity debt portfolio are analyzed quarterly to determine if an allowance for current expected credit losses is warranted. Wesbanco uses a database of historical financials of all corporate and municipal issuers and actual historic default and recovery rates on rated and non-rated transactions to estimate expected credit losses on an individual security basis. The expected credit losses are adjusted quarterly and are recorded in an allowance for expected credit losses on the balance sheet, which is deducted from the amortized cost basis of the held-to-maturity portfolio as a contra asset. The losses are recorded on the income ~~with an offsetting entry~~statement in ~~compensation expense.~~the provision for credit losses. Accrued interest receivable on held-to-maturity securities, which was $9.1 million and $9.5 million as of June 30, 2023 and December 31, 2022, respectively, is excluded from the estimate of credit losses. Held-to-maturity investments in U.S. Government sponsored entities and agencies as well as mortgage-backed securities and collateralized mortgage obligations, which are all either issued by a direct governmental entity or a government-sponsored entity, have no historical evidence supporting expected credit losses; therefore, Wesbanco has estimated these losses at zero, and will monitor this assumption in the future for any economic or governmental policies that could affect this assumption.

The following table provides a roll-forward of the allowance for credit losses on held-to-maturity securities for the six months ended June 30, 2023 and 2022:

   For the Three
Months Ended    For the Nine
Months Ended
   September 30,    September 30,
(unaudited, in thousands)
   2017    2016    2017    2016
Gross realized gains
   $ 29    $ 602    $ 603    $ 2,517
Gross realized losses
   (23 )    (4 )    (92 )    (224 )








Net realized gains
   $ 6    $ 598    $ 511    $ 2,293


	Allowance for Credit Losses By Category
	For the Six Months Ended June 30, 2023 and 2022
			Residential mortgage
			-backed
			securities and
			collateralized
			mortgage obligations		Obligations of
	U.S. Government		of government		states and			Corporate
	sponsored		sponsored entities		political			debt
(unaudited, in thousands)	entities and agencies		and agencies		subdivisions			Securities			Total
Balance at December 31, 2022	$	—	$	—	$	167		$	53		$	220
Current period provision (1)		—		—		(12	)		(15	)		(27	)
Write-offs		—		—		—			—			—
Recoveries		—		—		—			—			—
Balance at June 30, 2023	$	—	$	—	$	155		$	38		$	193
.
Balance at December 31, 2021	$	—	$	—	$	174		$	94		$	268
Current period provision (1)		—		—		8			(11	)		(3	)
Write-offs		—		—		—			—			—
Recoveries		—		—		—			—			—
Balance at June 30, 2022	$	—	$	—	$	182		$	83		$	265

(1) The total provision for credit losses on held-to-maturity securities is reported in the consolidated statements of income in the provision for credit losses line item, which also includes the provision for credit losses - loans and loan commitments. For more information on the provision relating to loans and loan commitments, please see Footnote 4, "Loans and the Allowance for Credit Losses."

The following tables provide information on unrealized losses on ~~investment~~available-for-sale debt securities that have been in an unrealized loss position for less than twelve months and twelve months or more, for which an allowance for credit losses has not been recorded, as of ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016:~~2022, respectively:


	September 30, 2017
	Less than 12 months							12 months or more							Total							June 30, 2023
	Fair		Unrealized			# of		Fair		Unrealized			# of		Fair		Unrealized			# of		Less than 12 months							12 months or more							Total
*(unaudited, dollars in thousands)*	Value		Losses			Securities		Value		Losses			Securities		Value		Losses			Securities		Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities
U.S. Government sponsored entities and agencies	$	29,875	$	(208	)		6	$	36,284	$	(487	)		5	$	66,159	$	(695	)		11	$	21,031	$	(1,455	)		14	$	190,885	$	(33,120	)		31	$	211,916	$	(34,575	)		45
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		729,219		(6,426	)		180		254,554		(6,713	)		69		983,773		(13,139	)		249		142,697		(9,003	)		66		1,577,076		(293,085	)		414		1,719,773		(302,088	)		480
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		93,924		(1,135	)		13		660		(16	)		2		94,584		(1,151	)		15		26,808		(373	)		4		278,434		(7,906	)		63		305,242		(8,279	)		67
Obligations of states and political subdivisions		96,323		(526	)		153		73,210		(1,242	)		156		169,533		(1,768	)		309		43,840		(1,052	)		79		25,416		(2,776	)		35		69,256		(3,828	)		114
Corporate debt securities		4,015		(22	)		1		6,960		(49	)		2		10,975		(71	)		3		7,270		(186	)		2		4,442		(59	)		4		11,712		(245	)		6
Equity securities		1,359		(3	)		1		—		—			—		1,359		(3	)		1

Total temporarily impaired securities	$	954,715	$	(8,320	)		354	$	371,668	$	(8,507	)		234	$	1,326,383	$	(16,827	)		588


	December 31, 2016
	Less than 12 months							12 months or more							Total
	Fair		Unrealized			# of		Fair		Unrealized			# of		Fair		Unrealized			# of
*(unaudited, dollars in thousands)*	Value		Losses			Securities		Value		Losses			Securities		Value		Losses			Securities
U.S. Government sponsored entities and agencies	$	58,108	$	(1,177	)		11	$	—	$	—			—	$	58,108	$	(1,177	)		11
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		969,174		(16,436	)		232		58,839		(2,197	)		14		1,028,013		(18,633	)		246
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		88,169		(2,122	)		14		679		(17	)		2		88,848		(2,139	)		16
Obligations of states and political subdivisions		364,583		(7,121	)		604		2,047		(67	)		3		366,630		(7,188	)		607
Corporate debt securities		10,011		(78	)		3		5,973		(50	)		2		15,984		(128	)		5
Equity securities		2,938		(24	)		2		—		—			—		2,938		(24	)		2

Total temporarily impaired securities	$	1,492,983	$	(26,958	)		866	$	67,538	$	(2,331	)		21	$	1,560,521	$	(29,289	)		887

Total																						$	241,646	$	(12,069	)		165	$	2,076,253	$	(336,946	)		547	$	2,317,899	$	(349,015	)		712


	December 31, 2022
	Less than 12 months							12 months or more							Total
(dollars in thousands)	Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities		Fair Value		Unrealized Losses			# of Securities
U.S. Government sponsored entities and agencies	$	107,011	$	(8,435	)		35	$	118,779	$	(25,015	)		13	$	225,790	$	(33,450	)		48
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		514,789		(39,246	)		294		1,328,906		(258,741	)		202		1,843,695		(297,987	)		496
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		190,189		(5,106	)		38		159,543		(4,974	)		36		349,732		(10,080	)		74
Obligations of states and political subdivisions		67,822		(1,815	)		128		7,812		(2,282	)		10		75,634		(4,097	)		138
Corporate debt securities		7,225		(226	)		3		4,433		(67	)		3		11,658		(293	)		6
Total	$	887,036	$	(54,828	)		498	$	1,619,473	$	(291,079	)		264	$	2,506,509	$	(345,907	)		762

Unrealized losses on debt securities in the ~~tables~~table above represent temporary fluctuations resulting from changes in market rates in relation to fixed yields. Unrealized losses in theavailable-for-sale portfolio are accounted for as an adjustment, net of taxes, to other comprehensive income in shareholders’ equity.

~~WesBanco~~ Wesbanco does not believe the securities presented above are impaired due to reasons of credit quality, as substantially all debt securities are rated above investment grade and all are paying principal and interest according to their contractual terms. ~~WesBanco~~Wesbanco does not intend to sell, nor is it more likely than not that it will be required to sell, loss position securities prior to recovery of their ~~cost, and~~cost; therefore, management believes the unrealized losses detailed above ~~are temporary and no impairment loss~~do not require an allowance for credit losses relating to these securities ~~has been~~to be recognized.

Securities that do not have readily determinable fair values and for which ~~WesBanco~~Wesbanco does not exercise significant influence are carried at cost. Cost method investments consist primarily of ~~FHLB~~Federal Home Loan Bank (“FHLB”) of Pittsburgh ~~Cincinnati and Indianapolis~~ stock totaling ~~$48.6~~$63.2 million and ~~$46.4~~$36.2 million at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, respectively, and are included in other assets in the Consolidated Balance Sheets. Cost method investments are evaluated for impairment whenever events or circumstances suggest that their carrying value may not be recoverable.

NOTE 5.4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES

The recorded investment in loans is presented in the Consolidated Balance Sheets net of deferred loan fees and costs, and discounts on purchased loans. ~~The~~Net deferred loan ~~(costs) and fees~~costs were ~~$(1.0)~~$10.3 million and ~~$0.3~~$9.6 million at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, respectively. The ~~unamortized~~un-accreted discount on purchased loans from acquisitions was ~~$23.0 million, including $11.1 million related to YCB, and $24.1~~$15.5 million at ~~September~~June 30, ~~2017~~2023 and $18.0 million at December 31, 2022.


	June 30,		December 31,
(unaudited, in thousands)	2023		2022
Commercial real estate:
Land and construction	$	829,744	$	943,887
Improved property		5,465,723		5,117,457
Total commercial real estate		6,295,467		6,061,344
Commercial and industrial		1,558,491		1,579,395
Residential real estate		2,341,928		2,140,584
Home equity		701,824		695,065
Consumer		232,254		226,340
Total portfolio loans		11,129,964		10,702,728
Loans held for sale		28,970		8,249
Total loans	$	11,158,934	$	10,710,977

The allowance for credit losses under the current expected credit losses methodology ("CECL") is calculated utilizing the probability of default ("PD")/ loss given default ("LGD"), which is then discounted to net present value. PD is the probability the asset will default within a given time frame and LGD is the percentage of the asset not expected 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, loan risk grades, portfolio mix, concentrations and loan growth. For the calculation as of June 30, 2023, 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 quarter-end, national unemployment was projected to be 4.0%, and subsequently increase to an average of 4.8% over the remainder of the forecast period. Accrued interest receivable for loans was $54.0 million and $51.8 million at June 30, 2023 and December 31, ~~2016,~~2022, respectively. 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 $16.2 million and $17.0 million at June 30, 2023 and December 31, 2022, respectively.

(unaudited, in thousands)
   September 30,
2017    December 31,
2016
Commercial real estate:

Land and construction
   $ 606,593    $ 496,539
Improved property
   2,407,819    2,376,972




Total commercial real estate
   3,014,412    2,873,511




Commercial and industrial
   1,125,693    1,088,118
Residential real estate
   1,356,580    1,383,390
Home equity
   527,216    508,359
Consumer
   349,148    396,058




Total portfolio loans
   6,373,049    6,249,436




Loans held for sale
   26,888    17,315




Total loans
   $ 6,399,937    $ 6,266,751

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

   Allowance for Credit Losses By Category
   For the Nine Months Ended September 30, 2017 and 2016
   Commercial Commercial
   Real Estate- Real Estate-
   Land and Improved Commercial Residential Home Deposit
(unaudited, in thousands)
   Construction Property & Industrial Real Estate Equity Consumer Overdraft Total
Balance at December 31, 2016:

Allowance for loan losses
   $ 4,348 $ 18,628 $ 8,412 $ 4,106 $ 3,422 $ 3,998 $ 760 $ 43,674
Allowance for loan commitments
   151 17 188 9 162 44 —   571


Total beginning allowance for credit losses
   4,499 18,645 8,600 4,115 3,584 4,042 760 44,245


Provision for credit losses:

Provision for loan losses
   415 1,619 2,842 (203 ) 1,259 922 680 7,534
Provision for loan commitments
   (18 ) 4 45 —   49 (4 ) —   76


Total provision for credit losses
   397 1,623 2,887 (203 ) 1,308 918 680 7,610


Charge-offs
   —   (1,752 ) (2,255 ) (797 ) (372 ) (2,877 ) (947 ) (9,000 )
Recoveries
   89 492 649 266 180 1,336 267 3,279


Net charge-offs
   89 (1,260 ) (1,606 ) (531 ) (192 ) (1,541 ) (680 ) (5,721 )


Balance at September 30, 2017:

Allowance for loan losses
   4,852 18,987 9,648 3,372 4,489 3,379 760 45,487
Allowance for loan commitments
   133 21 233 9 211 40 —   647


Total ending allowance for credit losses
   $ 4,985 $ 19,008 $ 9,881 $ 3,381 $ 4,700 $ 3,419 $ 760 $ 46,134




Balance at December 31, 2015:

Allowance for loan losses
   $ 4,390 $ 14,748 $ 10,002 $ 4,582 $ 2,883 $ 4,763 $ 342 $ 41,710

Allowance for loan commitments
   157 26 260 7 117 46 —   613


Total beginning allowance for credit losses
   4,547 14,774 10,262 4,589 3,000 4,809 342 42,323


Provision for credit losses:

Provision for loan losses
   498 1,351 2,827 (67 ) 301 918 559 6,387
Provision for loan commitments
   (5 ) —   (40 ) 2 8 (2 ) —   (37 )


Total provision for credit losses
   493 1,351 2,787 (65 ) 309 916 559 6,350


Charge-offs
   (73 ) (1,732 ) (2,883 ) (529 ) (345 ) (2,733 ) (585 ) (8,880 )
Recoveries
   3 1,406 241 351 171 1,199 167 3,538


Net charge-offs
   (70 ) (326 ) (2,642 ) (178 ) (174 ) (1,534 ) (418 ) (5,342 )


Balance at September 30, 2016:

Allowance for loan losses
   4,818 15,773 10,187 4,337 3,010 4,147 483 42,755
Allowance for loan commitments
   152 26 220 9 125 44 —   576


Total ending allowance for credit losses
   $ 4,970 $ 15,799 $ 10,407 $ 4,346 $ 3,135 $ 4,191 $ 483 $ 43,331


	Allowance for Credit Losses By Category
	For the Six Months Ended June 30, 2023 and 2022
(unaudited, in thousands)	Commercial Real Estate - Land and Construction			Commercial Real Estate- Improved Property			Commercial & Industrial			Residential Real Estate			Home Equity			Consumer			Deposit Overdrafts (1)			Total
Balance at December 31, 2022
Allowance for credit losses - loans	$	6,737		$	52,659		$	31,540		$	18,208		$	4,234		$	3,127		$	1,285		$	117,790
Allowance for credit losses - loan commitments		6,025			—			—			2,215			128			—			—			8,368
Total beginning allowance for credit losses - loans and loan commitments		12,762			52,659			31,540			20,423			4,362			3,127			1,285			126,158
Provision for credit losses:
Provision for loan losses		(845	)		1,246			1,337			1,787			251			693			407			4,876
Provision for loan commitments		1,168			182			527			(621	)		500			—			—			1,756
Total provision for credit losses - loans and loan commitments (2)		323			1,428			1,864			1,166			751			693			407			6,632
Charge-offs		(222	)		(1,381	)		(999	)		7			(315	)		(1,601	)		(818	)		(5,329	)
Recoveries		128			427			259			313			250			1,231			221			2,829
Net (charge-offs) recoveries		(94	)		(954	)		(740	)		320			(65	)		(370	)		(597	)		(2,500	)
Balance at June 30, 2023
Allowance for credit losses - loans		5,798			52,951			32,137			20,315			4,420			3,450			1,095			120,166
Allowance for credit losses - loan commitments		7,193			182			527			1,594			628			—			—			10,124
Total ending allowance for credit losses - loans and loan commitments	$	12,991		$	53,133		$	32,664		$	21,909		$	5,048		$	3,450		$	1,095		$	130,290

Balance at December 31, 2021
Allowance for credit losses - loans	$	7,310		$	65,355		$	26,875		$	15,401		$	724		$	3,737		$	2,220		$	121,622
Allowance for credit losses - loan commitments		4,180			201			1,497			1,576			49			272			—			7,775
Total beginning allowance for credit losses - loans and loan commitments		11,490			65,556			28,372			16,977			773			4,009			2,220			129,397
Provision for credit losses:
Provision for loan losses		845			(6,401	)		1,097			(491	)		38			780			(58	)		(4,190	)
Provision for loan commitments		696			(201	)		(1,288	)		582			14			140			—			(57	)
Total provision for credit losses - loans and loan commitments (2)		1,541			(6,602	)		(191	)		91			52			920			(58	)		(4,247	)
Charge-offs		(73	)		(137	)		(355	)		(243	)		(178	)		(1,690	)		(776	)		(3,452	)
Recoveries		25			740			551			264			193			1,477			173			3,423
Net (charge-offs) recoveries		(48	)		603			196			21			15			(213	)		(603	)		(29	)
Balance at June 30, 2022
Allowance for credit losses - loans		8,107			59,557			28,168			14,931			777			4,304			1,559			117,403
Allowance for credit losses - loan commitments		4,876			—			209			2,158			63			412			—			7,718
Total ending allowance for credit losses - loans and loan commitments	$	12,983		$	59,557		$	28,377		$	17,089		$	840		$	4,716		$	1,559		$	125,121

(1) Deposit overdrafts of $4.5 million and $11.3 million are included in total portfolio loans for the periods ending June 30, 2023 and June 30, 2022, respectively.

(2) The total provision for credit losses - loans and loan commitments is reported in the consolidated statements of income in the provision for credit losses line item, which also includes the provision for credit losses on held-to-maturity securities. For more information on the provision relating to held-to-maturity securities, please see Footnote 3, "Securities."

The following tables present the allowance for credit losses and recorded investments in loans by ~~category:~~category, as of each period-end:

Allowance for Credit Losses and Recorded Investment in Loans
Commercial Commercial
Real Estate- Real Estate- Commercial Residential Deposit
Land and Improved and Real Home Over-
(unaudited, in thousands)
Construction Property Industrial Estate Equity Consumer draft Total
September 30, 2017

Allowance for credit losses:

Allowance for loans individually evaluated for impairment
$ —   $ 579 $ —   $ —   $ —   $ —   $ —   $ 579
Allowance for loans collectively evaluated for impairment
4,852 18,408 9,648 3,372 4,489 3,379 760 44,908
Allowance for loan commitments
133 21 233 9 211 40 —   647

Total allowance for credit losses
$ 4,985 $ 19,008 $ 9,881 $ 3,381 $ 4,700 $ 3,419 $ 760 $ 46,134

Portfolio loans:

Individually evaluated for impairment⁽¹⁾
$ —   $ 5,117 $ —   $ —   $ —   $ —   $ —   $ 5,117
Collectively evaluated for impairment
605,100 2,397,278 1,124,824 1,355,829 527,216 349,141 —   6,359,388
Acquired with deteriorated credit quality
1,493 5,424 869 751 —   7 —   8,544

Total portfolio loans
$ 606,593 $ 2,407,819 $ 1,125,693 $ 1,356,580 $ 527,216 $ 349,148 $ —   $ 6,373,049

December 31, 2016

Allowance for credit losses:

Allowance for loans individually evaluated for impairment
$ —   $ 470 $ 407 $ —   $ —   $ —   $ —   $ 877
Allowance for loans collectively evaluated for impairment
4,348 18,158 8,005 4,106 3,422 3,998 760 42,797
Allowance for loan commitments
151 17 188 9 162 44 —   571

Total allowance for credit losses
$ 4,499 $ 18,645 $ 8,600 $ 4,115 $ 3,584 $ 4,042 $ 760 $ 44,245

Portfolio loans:

Individually evaluated for impairment⁽¹⁾
$ —   $ 3,012 $ 1,270 $ —   $ —   $ —   $ —   $ 4,282
Collectively evaluated for impairment
494,928 2,364,067 1,086,445 1,382,447 508,359 396,049 —   6,232,295
Acquired with deteriorated credit quality
1,611 9,893 403 943 —   9 —   12,859

Total portfolio loans
$ 496,539 $ 2,376,972 $ 1,088,118 $ 1,383,390 $ 508,359 $ 396,058 $ —   $ 6,249,436


	Allowance for Credit Losses and Recorded Investment in Loans
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial and Industrial		Residential Real Estate		Home Equity		Consumer		Deposit Overdrafts (1)		Total
June 30, 2023
Allowance for credit losses:
Loans individually-evaluated	$	—	$	2,125	$	—	$	—	$	—	$	—	$	—	$	2,125
Loans collectively-evaluated		5,798		50,826		32,137		20,315		4,420		3,450		1,095		118,041
Loan commitments (2)		7,193		182		527		1,594		628		—		—		10,124
Total allowance for credit losses - loans and commitments	$	12,991	$	53,133	$	32,664	$	21,909	$	5,048	$	3,450	$	1,095	$	130,290

Portfolio loans:
Individually-evaluated for credit losses	$	—	$	28,107	$	242	$	—	$	—	$	—	$	—	$	28,349
Collectively-evaluated for credit losses		829,744		5,437,616		1,558,249		2,341,928		701,824		232,254		—		11,101,615
Total portfolio loans	$	829,744	$	5,465,723	$	1,558,491	$	2,341,928	$	701,824	$	232,254	$	—	$	11,129,964

December 31, 2022
Allowance for credit losses:
Loans individually-evaluated	$	—	$	2,988	$	130	$	—	$	—	$	—	$	—	$	3,118
Loans collectively-evaluated		6,737		49,671		31,410		18,208		4,234		3,127		1,285		114,672
Loan commitments (2)		6,025		—		—		2,215		128		—		—		8,368
Total allowance for credit losses - loans and commitments	$	12,762	$	52,659	$	31,540	$	20,423	$	4,362	$	3,127	$	1,285	$	126,158

Portfolio loans:
Individually-evaluated for credit losses	$	24,629	$	25,369	$	401	$	—	$	—	$	—	$	—	$	50,399
Collectively-evaluated for credit losses		919,258		5,092,088		1,578,994		2,140,584		695,065		226,340		—		10,652,329
Total portfolio loans	$	943,887	$	5,117,457	$	1,579,395	$	2,140,584	$	695,065	$	226,340	$	—	$	10,702,728

(1) Deposit overdrafts of $4.5 million and $4.4 million are included in total portfolio loans for the periods ending June 30, 2023 and December 31, 2022, respectively.

⁽¹⁾	~~Commercial loans greater than $1 million that are reported asnon-accrual~~ ~~or as a troubled debt restructuring (“TDR”) are individually evaluated for impairment.~~

~~WesBanco maintains an internal~~(2) For additional detail relating to loan ~~grading system to reflect the credit quality of commercial loans.~~ commitments, see Footnote 10, "Commitments and Contingent Liabilities."

Commercial loan risk grades are determined based on an evaluation of the relevant characteristics of each loan, assigned at ~~the~~ inception ~~of each loan~~ and adjusted thereafter at any time to reflect changes in the risk profile throughout the life of each loan. The primary factors used to determine the risk grade are the sufficiency, reliability and sustainability of the primary source of repayment and overall financial strength of the borrower. ~~This includes an analysis of cash flow available to repay~~The rating system more heavily weights the debt ~~profitability, liquidity,~~service coverage, leverage and ~~overall financial trends.~~loan to value factors to derive the risk grade. Other factors that are considered at a lesser weighting include management, industry or property type risks, ~~an assessment of secondary sources of repayment such as~~payment history, collateral or guarantees, other terms and conditions of the loan that may increase or reduce its risk, and economic conditions and other external factors that may influence repayment capacity and financial condition.

guarantees.

Commercial real estate – land and construction consists of loans to finance investments in vacant land, land development, construction of residential housing, and construction of commercial buildings. Commercial real estate – improved property consists of loans for the purchase or refinance of all types of improved owner-occupied and investment properties. Factors that are considered in assigning the risk grade vary depending on the type of property financed. The risk grade assigned to construction and development loans is based on the overall viability of the project, the experience and financial capacity of the developer or builder to successfully complete the project, project specific and market absorption rates and comparable property values, and the amount ofpre-sales for residential housing construction orpre-leases for commercial investment property. The risk grade assigned to commercial investment property loans is based primarily on the adequacy of the net ~~rental~~operating income generated by the property to service the debt (“debt service coverage”), the loan to appraised value, the type, quality, industry and mix of tenants, and the terms of ~~leases, but also considers the overall financial capacity of the investors and their experience in owning and managing investment property.~~leases. The risk grade assigned to owner-occupied commercial real estate ~~and commercial and industrial loans~~ is based primarily on ~~historical~~global debt service coverage and ~~projected earnings,~~ the ~~adequacy of operating cash flow to service all of the business’ debt, and the capital resources, liquidity and~~ leverage of the business, but may also ~~considers~~consider the industry in which the business operates, the business’ specific competitive advantages or disadvantages, collateral margins and the quality and experience of ~~management,~~management.

Commercial and ~~external influences on the~~industrial (“C&I”) loans consist of revolving lines of credit to finance accounts receivable, inventory and other general business ~~such as economic conditions. Other~~purposes; term loans to finance fixed assets other than real estate, and letters of credit to support trade, insurance or governmental requirements for a variety of businesses. Most C&I borrowers are privately-held companies with annual sales up to $100 million. Primary factors that are considered ~~for commercial and industrial~~in risk rating C&I loans include ~~the type, quality~~debt service coverage and ~~marketability ofnon-real~~ ~~estate~~leverage. Other factors including operating trends, collateral ~~and whether the structure of the loan increases or reduces its risk. The type, age, condition, location and any environmental risks associated~~coverage along with ~~a property~~management experience are also considered for all types of commercial real estate. The overall financial condition and repayment capacity of any guarantors is also evaluated to determine the extent to which they mitigate other risks of the loan. The following paragraphs provide descriptions of risk grades that are applicable to commercial real estate and commercial and industrial loans.considered.

Pass loans are those that exhibit a history of positive financial results that are at least comparable to the average for their industry or type of real estate. The primary source of repayment is acceptable and these loans are expected to perform satisfactorily during most economic cycles. Pass loans typically have no significant external factors that are expected to adversely affect these borrowers more than others in the same industry or property type. Any minor unfavorable characteristics of these loans are outweighed or mitigated by other positive factors including but not limited to adequate secondary or tertiary sources of ~~repayment.~~repayment, including guarantees.

Criticized loans, considered as compromised, have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or ~~compromised loans are currently protected but have weaknesses, which, if not corrected, may be inadequately protected~~in the bank's credit position at some future date. ~~These~~Criticized loans ~~represent an unwarranted credit~~are not adversely classified by the banking regulators and do not expose the bank to sufficient risk ~~and would generally not be extended in the normal course of lending. Specific issues which may~~to warrant ~~this grade include declining financial results, increased reliance on secondary sources of repayment or guarantor support and~~ adverse ~~external influences that may negatively impact the business or property.~~classification.

~~Substandard~~Classified loans, considered as substandard and doubtful, ~~loans~~ are equivalent to the classifications used by banking regulators. Substandard loans are inadequately protected by the current ~~repayment~~sound worth and paying capacity ~~and equity~~ of the ~~borrower~~obligor or of the collateral pledged, if any. ~~Substandard loans~~Loans so classified must have ~~one~~a well-defined weakness or ~~more well-defined~~ weaknesses that jeopardize ~~their repayment or collection in full.~~the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. These loans may or may not be reported asnon-accrual. Doubtful loans have all the weaknesses inherent ~~to a~~in those classified substandard, ~~loan~~ with the added characteristic that ~~full repayment is highly questionable~~the weaknesses make collection or ~~improbable~~liquidation in full, on the basis of currently ~~existing~~known facts, conditions, and ~~collateral values. However, recognition of loss may be deferred if there~~values, highly questionable and improbable. These loans are ~~reasonably specific pending factors that will reduce the risk if they occur.~~reported as non-accrual.

The following tables summarize commercial loans by their assigned risk grade:


	Commercial Loans by Internally Assigned Risk Grade								Commercial Loans by Internally Assigned Risk Grade
*(unaudited, in thousands)*	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans		Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans
As of September 30, 2017
As of June 30, 2023
Pass	$	600,325	$	2,350,919	$	1,109,774	$	4,061,018	$	820,779	$	5,340,591	$	1,505,781	$	7,667,151
Criticized - compromised		2,971		24,550		7,263		34,784		2,954		70,896		45,921		119,771
Classified - substandard		3,297		32,350		8,656		44,303		6,011		54,236		6,789		67,036
Classified - doubtful		—		—		—		—		—		—		—		—

Total	$	606,593	$	2,407,819	$	1,125,693	$	4,140,105	$	829,744	$	5,465,723	$	1,558,491	$	7,853,958

As of December 31, 2016
As of December 31, 2022
Pass	$	489,380	$	2,324,755	$	1,072,751	$	3,886,886	$	911,804	$	4,940,135	$	1,538,300	$	7,390,239
Criticized - compromised		4,405		15,295		5,078		24,778		1,329		121,393		25,223		147,945
Classified - substandard		2,754		36,922		10,289		49,965		30,754		55,929		15,872		102,555
Classified - doubtful		—		—		—		—		—		—		—		—

Total	$	496,539	$	2,376,972	$	1,088,118	$	3,961,629	$	943,887	$	5,117,457	$	1,579,395	$	7,640,739

Residential real estate, home equity and consumer loans are not assigned internal risk grades other than as required by regulatory guidelines that are based primarily on the age of past due loans. ~~WesBanco~~Wesbanco primarily evaluates the credit quality of residential real estate, home equity and consumer loans based on repayment performance and historical loss rates. The aggregate amount of residential real estate, home equity and consumer loans classified as substandard in accordance with regulatory guidelines was ~~$22.4~~$21.4 million at ~~September~~June 30, ~~2017~~2023 and ~~$20.6~~$24.8 million at December 31, ~~2016,~~2022, of which ~~$4.6~~$3.4 million and ~~$3.4~~$5.9 million were accruing, for each period, respectively. ~~The aggregate amount of residential real estate, home equity and consumer~~These loans ~~classified as substandard~~ are not included in the tables above.

~~Acquired YCB Loans~~ ~~— The carrying amount~~ In addition, $12.1 million and $25.0 million of ~~loans acquired from YCB with deteriorated credit quality~~unfunded commercial loan commitments are also not included in the tables above at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016 was $4.5 million and $5.7 million, respectively, of which $0.8 million and $1.4 million, respectively, were accounted for under the cost recovery method in accordance with ASC310-30,~~ ~~as cash flows cannot be reasonably estimated, and therefore are categorized asnon-accrual.~~ At September 30, 2017, the accretable yield was $0.5 million. At September 30, 2017 and December 31, 2016, no allowance for loan loss has been recognized related to the YCB acquired impaired loans.2022, respectively.

~~Acquired ESB Loans~~— The carrying amount of loans acquired from ESB Financial Corporation and ESB Bank (“ESB”), which WesBanco acquired on February 10, 2015, with deteriorated credit quality at September 30, 2017 and December 31, 2016 was $4.0 million and $7.2 million, respectively, of which $3.5 million and $0, respectively, were accounted for under the cost recovery method in accordance with ASC~~310-30,~~ ~~as cash flows cannot be reasonably estimated, and therefore are categorized asnon-accrual.~~ At September 30, 2017, the accretable yield was $1.1 million. At September 30, 2017 and December 31, 2016 an allowance for loan loss of $2.0 million and $1.8 million, respectively, has been recognized related to the ESB acquired impaired loans, as the estimates for future cash flows on these loans have been negatively impacted.17

~~The following table provides changes in accretable yield for loans acquired with deteriorated credit quality:~~

   For the Nine Months Ended
(unaudited, in thousands)
   September 30,
2017    September 30,
2016
Balance at beginning of period
   $ 1,717    $ 1,206
Acquisitions
   —      669
Reduction due to change in projected cash flows
   —      (324 )
Reclass from non-accretable difference
   1,490    1,065
Transfers
   (216 )    (328 )
Accretion
   (1,384 )    (398 )




Balance at end of period
   $ 1,607    $ 1,890

The following tables summarize the age analysis of all categories of loans:


	Age Analysis of Loans														Age Analysis of Loans
*(unaudited, in thousands)*	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		90 Days or More Past Due and Accruing⁽¹⁾		Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		90 Days or More Past Due and Accruing (1)
As of September 30, 2017
As of June 30, 2023
Commercial real estate:
Land and construction	$	606,122	$	—	$	—	$	471	$	471	$	606,593	$	—	$	829,744	$	—	$	—	$	—	$	—	$	829,744	$	—
Improved property		2,391,693		2,235		617		13,274		16,126		2,407,819		542		5,446,988		260		6,761		11,714		18,735		5,465,723		1,235

Total commercial real estate		2,997,815		2,235		617		13,745		16,597		3,014,412		542		6,276,732		260		6,761		11,714		18,735		6,295,467		1,235
Commercial and industrial		1,121,307		1,363		497		2,526		4,386		1,125,693		20		1,554,606		749		422		2,714		3,885		1,558,491		537
Residential real estate		1,341,924		4,831		759		9,066		14,656		1,356,580		2,418		2,333,554		591		2,287		5,496		8,374		2,341,928		1,301
Home equity		519,110		3,354		808		3,944		8,106		527,216		1,289		692,980		3,039		1,167		4,638		8,844		701,824		1,655
Consumer		344,241		3,134		901		872		4,907		349,148		587		227,778		3,098		912		466		4,476		232,254		419

Total portfolio loans		6,324,397		14,917		3,582		30,153		48,652		6,373,049		4,856		11,085,650		7,737		11,549		25,028		44,314		11,129,964		5,147
Loans held for sale		26,888		—		—		—		—		26,888		—		28,970		—		—		—		—		28,970		—

Total loans	$	6,351,285	$	14,917	$	3,582	$	30,153	$	48,652	$	6,399,937	$	4,856	$	11,114,620	$	7,737	$	11,549	$	25,028	$	44,314	$	11,158,934	$	5,147

Impaired loans included above are as follows:
Nonperforming loans included above are as follows:
Non-accrual loans	$	9,360	$	873	$	226	$	24,999	$	26,098	$	35,458			$	10,736	$	285	$	653	$	19,881	$	20,819	$	31,555
TDRs accruing interest⁽¹⁾		6,232		108		—		298		406		6,638

Total impaired	$	15,592	$	981	$	226	$	25,297	$	26,504	$	42,096

As of December 31, 2016
As of December 31, 2022
Commercial real estate:
Land and construction	$	496,245	$	—	$	—	$	294	$	294	$	496,539	$	—	$	942,236	$	—	$	910	$	741	$	1,651	$	943,887	$	629
Improved property		2,367,790		1,154		363		7,665		9,182		2,376,972		318		5,099,342		2,147		331		15,637		18,115		5,117,457		84

Total commercial real estate		2,864,035		1,154		363		7,959		9,476		2,873,511		318		6,041,578		2,147		1,241		16,378		19,766		6,061,344		713
Commercial and industrial		1,082,390		2,508		1,011		2,209		5,728		1,088,118		229		1,574,311		1,427		519		3,138		5,084		1,579,395		1,586
Residential real estate		1,365,956		6,701		1,043		9,690		17,434		1,383,390		1,922		2,129,095		853		3,536		7,100		11,489		2,140,584		1,551
Home equity		502,087		2,358		862		3,052		6,272		508,359		626		686,762		3,885		621		3,797		8,303		695,065		1,063
Consumer		390,354		3,674		1,149		881		5,704		396,058		644		222,153		2,910		704		573		4,187		226,340		530

Total portfolio loans		6,204,822		16,395		4,428		23,791		44,614		6,249,436		3,739		10,653,899		11,222		6,621		30,986		48,829		10,702,728		5,443
Loans held for sale		17,315		—		—		—		—		17,315		—		8,249		—		—		—		—		8,249		—

Total loans	$	6,222,137	$	16,395	$	4,428	$	23,791	$	44,614	$	6,266,751	$	3,739	$	10,662,148	$	11,222	$	6,621	$	30,986	$	48,829	$	10,710,977	$	5,443

Impaired loans included above are as follows:
Nonperforming loans included above are as follows:
Non-accrual loans	$	7,570	$	3,479	$	923	$	19,812	$	24,214	$	31,784			$	10,337	$	1,495	$	870	$	25,483	$	27,848	$	38,185
TDRs accruing interest⁽¹⁾		7,014		342		50		240		632		7,646

Total impaired	$	14,584	$	3,821	$	973	$	20,052	$	24,846	$	39,430

TDRs accruing interest																3,131		7		32		60		99		3,230
Total nonperforming loans															$	13,468	$	1,502	$	902	$	25,543	$	27,947	$	41,415

(1) For the table presented as of December 31, 2022, loans 90 days or more past due and accruing interest exclude TDRs 90 days or more past due and accruing interest.

⁽¹⁾	~~Loans 90 days or more past due and accruing interest exclude TDRs 90 days or more past due and accruing interest.~~

The following tables summarize ~~impaired~~nonperforming loans:


	Impaired Loans																					Nonperforming Loans
	September 30, 2017									December 31, 2016												June 30, 2023												December 31, 2022
	Unpaid Principal Balance ⁽¹)		Recorded Investment			Related Allowance				Unpaid Principal Balance ⁽¹⁾				Recorded Investment				Related Allowance				Unpaid												Unpaid
									Principal												Recorded				Related				Principal				Recorded				Related
*(unaudited, in thousands)*									Balance (1)												Investment				Allowance				Balance (1)				Investment				Allowance
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	666		$	474		$	—				$	1,212			$	766			$	—			$	—			$	—			$	—			$	112			$	112			$	—
Improved property		15,981			10,709			—					9,826				8,141				—				12,958				11,196				—				18,367				16,601				—
Commercial and industrial		3,884		3,083			—				4,456				3,181				—				2,894				2,350				—				4,102				3,112				—
Residential real estate		18,925		17,094			—				20,152				18,305				—				17,308				12,650				—				21,084				16,057				—
Home equity		5,528		4,845			—				4,589				4,011				—				6,901				5,261				—				6,970				5,374				—
Consumer		934		774			—				884				744				—				175				98				—				316				159				—

Total impaired loans without a specific allowance		45,918		36,979			—				41,119				35,148				—

With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—			—				—				—				—
Improved property		5,117		5,117			579				3,012				3,012				470
Commercial and industrial		—		—			—				4,875				1,270				407

Total impaired loans with a specific allowance		5,117		5,117			579				7,887				4,282				877

Total impaired loans	$	51,035	$	42,096		$	579			$	49,006			$	39,430			$	877

Total nonperforming loans without a specific allowance																							40,236				31,555				—				50,951				41,415				—
Total nonperforming loans with a specific allowance																							—				—				—				—				—				—
Total nonperforming loans																						$	40,236			$	31,555			$	—			$	50,951			$	41,415			$	—

⁽¹⁾	(1) The difference between the unpaid principal balance and ~~the recorded investment generally reflects amounts that have been previouslycharged-off~~ ~~and fair market value adjustments on acquired impaired loans.~~

   Impaired Loans
   For the Three Months Ended    For the Nine Months Ended
   September 30, 2017    September 30, 2016    September 30, 2017    September 30, 2016
   Average
Recorded
Investment    Interest
Income
Recognized    Average
Recorded
Investment    Interest
Income
Recognized    Average
Recorded
Investment    Interest
Income
Recognized    Average
Recorded
Investment    Interest
Income
Recognized

(unaudited, in thousands)

With no related specific allowance recorded:

Commercial real estate:

Land and construction
   $ 444    $ —      $ 701    $ —      $ 516    $ —      $ 1,062    $ —
Improved Property
   10,923    31    8,403    28    10,271    400    9,408    86
Commercial and industrial
   3,588    2    3,172    2    3,700    6    3,246    7
Residential real estate
   17,039    57    17,013    81    17,743    192    16,882    256
Home equity
   4,727    4    3,613    4    4,456    14    3,381    16
Consumer
   731    2    814    —      746    5    953    6
















Total impaired loans without a specific allowance
   37,452    96    33,716    115    37,432    617    34,932    371
















With a specific allowance recorded:

Commercial real estate:

Land and construction
   —      —      —      —      —      —      —      —
Improved Property
   5,137    —      3,012    —      5,032    —      3,012    —
Commercial and industrial
   —      —      2,678    —      318    —      3,700    —
















Total impaired loans with a specific allowance
   5,137    —      5,690    —      5,350    —      6,712    —
















Total impaired loans
   $ 42,589    $ 96    $ 39,406    $ 115    $ 42,782    $ 617    $ 41,644    $ 371

~~The following tables present~~ the recorded investment generally reflects amounts that have been previously charged-off and fair market value adjustments on acquired nonperforming loans.


	Nonperforming Loans
	For the Three Months Ended								For the Six Months Ended
	June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
	Average		Interest		Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income		Recorded		Income
(unaudited, in thousands)	Investment		Recognized		Investment		Recognized		Investment		Recognized		Investment		Recognized
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	—	$	—	$	105	$	1	$	37	$	—	$	94	$	2
Improved property		14,698		—		7,595		6		15,332		—		7,750		14
Commercial and industrial		2,780		—		4,631		—		2,890		—		4,831		3
Residential real estate		12,744		—		18,149		36		13,848		—		18,728		72
Home equity		5,061		—		5,411		3		5,165		—		5,396		6
Consumer		104		—		464		1		122		—		496		2
Total nonperforming loans without a specific allowance		35,386		—		36,354		47		37,394		—		37,295		99
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—		—		—		—		—
Improved property		—		—		—		—		—		—		—		—
Total nonperforming loans with a specific allowance		—		—		—		—		—		—		—		—
Total nonperforming loans	$	35,386	$	—	$	36,354	$	47	$	37,394	$	—	$	37,295	$	99

The following table presents the recorded investment innon-accrual loans:


	Non-accrual Loans (1)
	June 30,		December 31,
(unaudited, in thousands)	2023		2022
Commercial real estate:
Land and construction	$	—	$	112
Improved property		11,196		16,254
Total commercial real estate		11,196		16,366
Commercial and industrial		2,350		2,946
Residential real estate		12,650		13,695
Home equity		5,261		5,044
Consumer		98		134
Total	$	31,555	$	38,185

(1) At June 30, 2023, there were three borrowers with a loan balance greater than $1.0 million, which totaled $8.3 million, as compared to three borrowers with a loan balance greater than $1.0 million totaling $11.8 million at December 31, 2022. Total non-accrual loans include loans that are also restructured for borrowers experiencing financial difficulty or were previously designated as TDRs prior to the adoption of ASU 2022-02. Such loans are also set forth in the following tables.

Modifications for Borrowers Experiencing Financial Difficulty (following the adoption of ASU 2022-02)

Tables in the following section exclude the financial effects of modifications for loans that were paid off or are otherwise no longer in the loan portfolio as of period end. The following table displays the details of portfolio loans that were modified during the three and ~~TDRs:~~six months ended June 30, 2023 presented by loan category:


	For the Three Months Ended June 30, 2023
(unaudited, in thousands)	Term Extension		Payment Delay		Total		% of Total by Loan Category
Commercial real estate - land and construction	$	448	$	—	$	448		0.1
Commercial real estate - improved property		3,820		270		4,090		0.1
Commercial and industrial		6,544		—		6,544		0.4
Residential real estate		—		—		—		—
Home equity		—		483		483		0.1
Consumer		—		267		267		0.1
Total	$	10,812	$	1,020	$	11,832		0.1

	For the Six Months Ended June 30, 2023
(unaudited, in thousands)	Term Extension		Payment Delay		Total		% of Total by Loan Category
Commercial real estate - land and construction	$	6,449	$	—	$	6,449		0.8
Commercial real estate - improved property		7,105		270		7,375		0.1
Commercial and industrial		9,310		—		9,310		0.6
Residential real estate		—		100		100		0.0
Home equity		8		751		759		0.1
Consumer		—		293		293		0.1
Total	$	22,872	$	1,414	$	24,286		0.2

Unfunded loan commitments on modifications for borrowers experiencing financial difficulty ("MBEFDs") totaled $3.5 million at June 30, 2023. These commitments are not included in the table above.

   Non-accrual Loans⁽¹⁾
(unaudited, in thousands)
   September 30,
2017    December 31,
2016

Commercial real estate:

Land and construction
   $ 474    $ 766
Improved property
   14,263    9,535




Total commercial real estate
   14,737    10,301




Commercial and industrial
   2,950    4,299
Residential real estate
   12,641    12,994
Home equity
   4,426    3,538
Consumer
   704    652




Total
   $ 35,458    $ 31,784

The following table summarizes the financial impacts of loan modifications and payment deferrals made to portfolio loans during the three and six months ended June 30, 2023, presented by loan category:

⁽¹⁾	~~At September~~
	For the Three Months Ended June 30, 2017, there were three borrowers with loans greater than $1.0 million totaling $8.6 million, as compared to two borrowers with loans greater than $1.0 million totaling $4.3 million at December 31, 2016. Total~~non-accrual~~ ~~loans include loans that are also restructured. Such loans are also set forth~~2023
(unaudited, in thousands)	Weighted-Average Term Extension (in months)
Commercial real estate - land and construction		12
Commercial real estate - improved property		9
Commercial and industrial		8
Residential real estate		—
Home equity		—
Consumer		—


	For the ~~following table asnon-accrual~~ ~~TDRs.~~Six Months Ended June 30, 2023
(unaudited, in thousands)	Weighted-Average Term Extension (in months)
Commercial real estate - land and construction		4
Commercial real estate - improved property		22
Commercial and industrial		9
Residential real estate		—
Home equity		120
Consumer		—

   TDRs
   September 30, 2017    December 31, 2016
(unaudited, in thousands)
   Accruing    Non-Accrual    Total    Accruing    Non-Accrual    Total
Commercial real estate:

Land and construction
   $ —      $ 4    $ 4    $ —      $ 8    $ 8
Improved property
   1,563    446    2,009    1,618    688    2,306












Total commercial real estate
   1,563    450    2,013    1,618    696    2,314












Commercial and industrial
   133    164    297    152    151    303
Residential real estate
   4,453    1,810    6,263    5,311    2,212    7,523
Home equity
   419    419    838    473    297    770
Consumer
   70    139    209    92    190    282












Total
   $ 6,638    $ 2,982    $ 9,620    $ 7,646    $ 3,546    $ 11,192

AsThere have been no MBEFDs which defaulted (defined as past due 90 days) after the loan was modified during the three and six months ended June 30, 2023.

The following table presents an aging analysis of ~~September 30, 2017 and December 31, 2016, there~~portfolio loans that were ~~no TDRs greater than $1.0 million. The concessions granted in~~modified on or after January 1, 2023, the ~~majority of loans reported as accruing andnon-accrual~~ ~~TDRs are extensions of the maturity~~ date or the amortization period, reductions in the interest rate below the prevailing market rate for loans with comparable characteristics, and/or permitting interest-only payments for longer than three months. WesBanco had unfunded commitments to debtors whose loans were classified as impaired of $0.1 million and $0that Wesbanco adopted ASU 2022-02, by loan category, as of ~~September~~June 30, ~~2017 and December 31, 2016, respectively.~~

2023:


	June 30, 2023
(unaudited, in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Commercial real estate - land and construction	$	—	$	—	$	—	$	—	$	6,449	$	6,449
Commercial real estate - improved property		—		—		270		270		7,105		7,375
Commercial and industrial		143		—		—		143		9,168		9,311
Residential real estate		—		—		—		—		100		100
Home equity		18		—		72		90		668		758
Consumer		—		—		20		20		273		293
Total modified loans (1)	$	161	$	—	$	362	$	523	$	23,763	$	24,286

(1) Represents balance at period end.

Troubled Debt Restructuring Disclosures (prior to the adoption of ASU 2022-02)

The following ~~tables present~~table presents details related to loans identified as TDRs during the three and ~~nine~~six months ended ~~September~~June 30, ~~2017 and 2016, respectively:~~2022:


													New TDRs (1)
	New TDRs⁽¹⁾ For the Three Months Ended												For the Three Months Ended
	September 30, 2017						September 30, 2016						June 30, 2022
			Pre-		Post-				Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded		Number of		Recorded		Recorded
*(unaudited, dollars in thousands)*	Modifications		Investment		Investment		Modifications		Investment		Investment		Modifications		Investment		Investment
Commercial real estate:
Land and construction		—	$	—	$	—		—	$	—	$	—		—	$	—	$	—
Improved Property		1		190		185		—		—		—

Improved property														1		186		184
Total commercial real estate		1		190		185		—		—		—		1		186		184

Commercial and industrial		—		—		—		2		125		122		—		—		—
Residential real estate		—		—		—		2		124		122		—		—		—
Home equity		2		94		88		—		—		—		—		—		—
Consumer		1		7		6		4		26		23		—		—		—

Total		4	$	291	$	279		8	$	275	$	267		1	$	186	$	184

													New TDRs (1)
													For the Six Months Ended
													June 30, 2022
															Pre-		Post-
															Modification		Modification
															Outstanding		Outstanding
													Number of		Recorded		Recorded
(unaudited, dollars in thousands)													Modifications		Investment		Investment
Commercial real estate:
Land and construction														1	$	84	$	54
Improved property														1		189		184
Total commercial real estate														2		273		238
Commercial and industrial														—		—		—
Residential real estate														—		—		—
Home equity														—		—		—
Consumer														—		—		—
Total														2	$	273	$	238

(1) Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.

~~(1)~~

~~Excludes loans that were either paid off orcharged-off~~ ~~by period end. Thepre-modification~~ ~~balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.~~

   New TDRs⁽¹⁾
   For the Nine Months Ended
   September 30, 2017    September 30, 2016
(unaudited, dollars in thousands)
   Number of
Modifications    Pre-
Modification
Outstanding
Recorded
Investment    Post-
Modification
Outstanding
Recorded
Investment    Number of
Modifications    Pre-
Modification
Outstanding
Recorded
Investment    Post-
Modification
Outstanding
Recorded
Investment
Commercial real estate:

Land and construction
   —      $ —      $ —      —      $ —      $ —
Improved Property
   1    190    185    —      —      —












Total commercial real estate
   1    190    185    —      —      —












Commercial and industrial
   1    64    59    2    125    122
Residential real estate
   2    22    17    3    150    143
Home equity
   3    141    132    1    44    41
Consumer
   4    42    33    10    70    54












Total
   11    $ 459    $ 426    16    $ 389    $ 360

⁽¹⁾	~~Excludes loans that were either paid off orcharged-off~~ ~~by period end. Thepre-modification~~ ~~balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.~~

~~The following table summarizes~~There were no TDRs which defaulted (defined as past due 90 days) during the ~~nine~~three months ended ~~September~~June 30, ~~2017 and 2016, respectively,~~2022 that were restructured within the last twelve months prior to ~~September~~June 30, ~~2017~~2022.

The following tables summarize amortized cost basis loan balances by year of origination and ~~2016, respectively:~~credit quality indicator:


	Defaulted TDRs⁽¹⁾									Loans As of June 30, 2023
	For the Nine Months Ended									Amortized Cost Basis by Origination Year
(unaudited, in thousands)										2023		2022		2021		2020		2019		Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate: land and construction									Commercial real estate: land and construction
Risk rating:
Pass										$	96,806	$	234,122	$	139,586	$	51,797	$	50,568	$	42,964		$	135,538	$	69,398	$	820,779
Criticized - compromised											—		—		260		—		—		20			—		2,674		2,954
Classified - substandard											—		—		—		—		—		11			—		6,000		6,011
Classified - doubtful											—		—		—		—		—		—			—		—		—
Total										$	96,806	$	234,122	$	139,846	$	51,797	$	50,568	$	42,995		$	135,538	$	78,072	$	829,744
Current-period gross charge-offs										$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	222	$	222
	September 30, 2017				September 30, 2016
*(unaudited, dollars in thousands)*	Number of Defaults		Recorded Investment		Number of Defaults		Recorded Investment
Commercial real estate:
Land and construction		—	$	—		—	$	—
Improved property		—		—		—		—

Total commercial real estate		—		—		—		—
Commercial real estate: improved property									Commercial real estate: improved property
Risk rating:
Pass										$	288,153	$	1,095,462	$	612,900	$	605,147	$	572,255	$	1,883,067		$	74,855	$	208,752	$	5,340,591
Criticized - compromised											—		858		1,677		5,107		3,898		58,364			992		—		70,896
Classified - substandard											—		515		416		714		13,397		24,612			137		14,445		54,236
Classified - doubtful											—		—		—		—		—		—			—		—		—
Total										$	288,153	$	1,096,835	$	614,993	$	610,968	$	589,550	$	1,966,043		$	75,984	$	223,197	$	5,465,723
Current-period gross charge-offs										$	—	$	—	$	—	$	—	$	—	$	1,381		$	—	$	—	$	1,381

Commercial and industrial		—		—		1		40	Commercial and industrial
Risk rating:
Pass										$	118,188	$	256,690	$	165,711	$	100,007	$	48,413	$	289,745		$	487,460	$	39,567	$	1,505,781
Criticized - compromised											1,077		497		1,350		330		7,109		18,315			10,562		6,681		45,921
Classified - substandard											50		215		94		88		1,253		2,184			1,478		1,427		6,789
Classified - doubtful											—		—		—		—		—		—			—		—		—
Total										$	119,315	$	257,402	$	167,155	$	100,425	$	56,775	$	310,244		$	499,500	$	47,675	$	1,558,491
Current-period gross charge-offs										$	48	$	86	$	404	$	43	$	—	$	211		$	—	$	207	$	999

Residential real estate		1		7		—		—	Residential real estate
Loan delinquency:
Current										$	161,338	$	536,141	$	484,264	$	192,707	$	91,106	$	493,384		$	—	$	374,614	$	2,333,554
30-59 days past due											—		—		—		—		—		591			—		—		591
60-89 days past due											—		—		188		—		—		2,099			—		—		2,287
90 days or more past due											—		—		—		—		843		4,618			—		35		5,496
Total										$	161,338	$	536,141	$	484,452	$	192,707	$	91,949	$	500,692		$	—	$	374,649	$	2,341,928
Current-period gross charge-offs										$	—	$	—	$	—	$	—	$	5	$	(12	)	$	—	$	—	$	(7	)

Home equity		—		—		—		—	Home equity
Loan delinquency:
Current										$	11,595	$	806	$	1,871	$	1,539	$	1,747	$	25,019		$	649,356	$	1,047	$	692,980
30-59 days past due											—		58		—		252		269		555			1,905		—		3,039
60-89 days past due											—		—		15		101		41		1,010			—		—		1,167
90 days or more past due											—		305		110		595		286		2,921			—		421		4,638
Total										$	11,595	$	1,169	$	1,996	$	2,487	$	2,343	$	29,505		$	651,261	$	1,468	$	701,824
Current-period gross charge-offs										$	—	$	3	$	—	$	—	$	11	$	295		$	6	$	—	$	315

Consumer		1		7		—		—	Consumer

Loan delinquency:
Current										$	53,436	$	69,969	$	28,595	$	18,303	$	17,244	$	16,699		$	23,530	$	2	$	227,778
30-59 days past due											173		1,364		659		419		65		391			27		—		3,098
60-89 days past due											—		467		303		57		32		53			—		—		912
90 days or more past due											—		98		94		136		4		134			—		—		466
Total		2	$	14		1	$	40		$	53,609	$	71,898	$	29,651	$	18,915	$	17,345	$	17,277		$	23,557	$	2	$	232,254

Current-period gross charge-offs										$	—	$	814	$	510	$	98	$	49	$	130		$	—	$	—	$	1,601

⁽¹⁾	~~Excludes loans that were eithercharged-off~~ ~~or cured by period end. The recorded investment is as of September 30, 2017 and 2016, respectively.~~

~~TDRs that default are placed onnon-accrual~~ ~~status unless they are both well-secured and in the process of collection. The loans in the table above were not accruing interest.~~


	Loans As of December 31, 2022
	Amortized Cost Basis by Origination Year
(unaudited, in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate: land and construction
Risk rating:
Pass	$	159,769	$	136,131	$	138,171	$	155,141	$	61,823	$	51,381	$	117,237	$	92,151	$	911,804
Criticized - compromised		559		265		—		—		24		31		—		450		1,329
Classified - substandard		—		—		6,001		—		—		124		—		24,629		30,754
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	160,328	$	136,396	$	144,172	$	155,141	$	61,847	$	51,536	$	117,237	$	117,230	$	943,887
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	73	$	—	$	—	$	—	$	73

Commercial real estate: improved property
Risk rating:
Pass	$	1,082,984	$	620,205	$	613,663	$	528,004	$	371,880	$	1,551,478	$	72,327	$	99,594	$	4,940,135
Criticized - compromised		10,554		354		2,877		7,659		13,551		85,332		1,066		—		121,393
Classified - substandard		—		658		275		15,489		9,761		29,712		34		—		55,929
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	1,093,538	$	621,217	$	616,815	$	551,152	$	395,192	$	1,666,522	$	73,427	$	99,594	$	5,117,457
Current-period gross charge-offs	$	—	$	—	$	128	$	100	$	3	$	564	$	—	$	—	$	795

Commercial and industrial
Risk rating:
Pass	$	280,510	$	184,805	$	116,890	$	72,142	$	103,660	$	232,062	$	526,025	$	22,206	$	1,538,300
Criticized - compromised		917		1,192		270		8,278		264		2,524		7,654		4,124		25,223
Classified - substandard		93		3,209		976		2,157		97		2,854		1,066		5,420		15,872
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	281,520	$	189,206	$	118,136	$	82,577	$	104,021	$	237,440	$	534,745	$	31,750	$	1,579,395
Current-period gross charge-offs	$	—	$	16	$	234	$	275	$	70	$	182	$	—	$	291	$	1,068

Residential real estate
Loan delinquency:
Current	$	541,659	$	556,928	$	211,496	$	97,160	$	52,135	$	478,977	$	—	$	190,740	$	2,129,095
30-59 days past due		—		—		—		—		—		853		—		—		853
60-89 days past due		—		442		349		65		—		2,680		—		—		3,536
90 days or more past due		—		—		—		285		119		6,654		—		42		7,100
Total	$	541,659	$	557,370	$	211,845	$	97,510	$	52,254	$	489,164	$	—	$	190,782	$	2,140,584
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	6	$	494	$	—	$	—	$	500

Home equity
Loan delinquency:
Current	$	10,718	$	1,459	$	1,133	$	1,774	$	1,088	$	25,203	$	644,430	$	957	$	686,762
30-59 days past due		80		61		180		67		34		1,165		2,260		38		3,885
60-89 days past due		—		15		—		50		88		458		—		10		621
90 days or more past due		—		—		572		93		257		2,425		16		434		3,797
Total	$	10,798	$	1,535	$	1,885	$	1,984	$	1,467	$	29,251	$	646,706	$	1,439	$	695,065
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	310	$	—	$	48	$	358

Consumer
Loan delinquency:
Current	$	84,817	$	36,123	$	25,071	$	25,535	$	8,488	$	16,337	$	25,755	$	27	$	222,153
30-59 days past due		980		937		488		159		98		217		31		—		2,910
60-89 days past due		184		293		94		47		29		57		—		—		704
90 days or more past due		183		208		69		32		2		79		—		—		573
Total	$	86,164	$	37,561	$	25,722	$	25,773	$	8,617	$	16,690	$	25,786	$	27	$	226,340
Current-period gross charge-offs	$	769	$	1,237	$	624	$	333	$	186	$	326	$	—	$	1	$	3,476

The following table summarizes other real estate owned and repossessed assets included in other assets:


					June 30,		December 31,
*(unaudited, in thousands)*	September 30, 2017		December 31, 2016		2023		2022
Other real estate owned	$	5,636	$	8,206	$	1,289	$	1,397
Repossessed assets		146		140		143		89

Total other real estate owned and repossessed assets	$	5,782	$	8,346	$	1,432	$	1,486

~~At September 30, 2017, other real estate owned includes $1.1 million from the YCB acquisition and $3.1 million at December 31, 2016.~~

Residential real estate included in other real estate owned was $0.1 million and $0at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016 was $1.7 million and $1.6 million,~~2022, respectively. At ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, formal foreclosure proceedings were in process on residential real estate loans totaling ~~$3.3~~$4.4 million and ~~$4.1~~$4.9 million, respectively.

NOTE 5. DERIVATIVES AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

Wesbanco is exposed to certain risks arising from both its business operations and economic conditions. Wesbanco principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. Wesbanco manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities. Wesbanco’s existing interest rate derivatives result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in Wesbanco’s assets or liabilities. Wesbanco manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. A matched book is when the Bank's assets and liabilities are equally distributed but also have similar maturities.

Loan Swaps

Wesbanco executes interest rate swaps and interest rate caps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps and caps are economically hedged by offsetting interest rate swaps and caps that Wesbanco executes with a third party, such that Wesbanco minimizes its net risk exposure resulting from such transactions. As the interest rate swaps and caps associated with this program do not meet the hedge accounting requirements of ASC 815, changes in the fair value of both the customer swaps and caps and the offsetting third-party swaps and caps are recognized directly in earnings. As of June 30, 2023 and December 31, 2022, Wesbanco had 186 and 159 customer interest rate swaps and caps with an aggregate notional amount of $1.2 billion and $0.9 billion, respectively, related to this program. Wesbanco recognized income for the related swap and cap fees of $2.4 million and $0.9 million for the three months ended June 30, 2023 and 2022, respectively, and $4.3 million and $1.0 million for the six months ended June 30, 2023 and 2022, respectively.

Risk participation agreements are entered into as financial guarantees of performance on interest rate swap derivatives. The purchased asset or sold liability allows Wesbanco to participate-in (fee received) or participate-out (fee paid) the risk associated with certain derivative positions executed by the borrower of the lead bank in a loan syndication. As of June 30, 2023 and December 31, 2022, Wesbanco had 18 and 16 risk participation-in agreements with an aggregate notional amount of $198.1 million and $187.8 million, respectively. As of June 30, 2023 and December 31, 2022, Wesbanco had one risk participation-out agreement with an aggregate notional amount of $9.4 million and $9.6 million, respectively.

Mortgage Loans Held for Sale and Interest Rate Lock Commitments

Certain residential mortgage loans are originated for sale in the secondary mortgage loan market. These loans are classified as held for sale and carried at fair value as Wesbanco has elected the fair value option. Fair value is determined based on rates obtained from the secondary market for loans with similar characteristics. Wesbanco sells loans to the secondary market on either a mandatory or best efforts basis. The loans sold on a mandatory basis are not committed to an investor until the loan is closed with the borrower. Wesbanco enters into forward to be announced (“TBA”) contracts to manage the interest rate risk between the lock commitment and the closing of the loan. The total balance of forward TBA contracts entered into was $51.0 million and $14.5 million at June 30, 2023 and December 31, 2022, respectively. The loans sold on a best efforts basis are committed to an investor simultaneous to the interest rate commitment with the borrower, and as a result, the Company does not enter into a separate forward TBA contract to offset the fair value risk as the investor accepts such risk in exchange for paying a lower premium on sale.

Fair Values of Derivative Instruments on the Balance Sheet

All derivatives are carried on the consolidated balance sheet at fair value. Derivative assets are classified in the consolidated balance sheet under other assets, and derivative liabilities are classified in the consolidated balance sheet under other liabilities. Changes in fair value are recognized in earnings. None of Wesbanco’s derivatives are designated in a qualifying hedging relationship under ASC 815.

The table below presents the fair value of Wesbanco’s derivative financial instruments as well as their classification on the Balance Sheet as of June 30, 2023 and December 31, 2022:


	June 30, 2023						December 31, 2022
(unaudited, in thousands)	Notional or Contractual Amount		Asset Derivatives		Liability Derivatives		Notional or Contractual Amount		Asset Derivatives		Liability Derivatives
Derivatives
Loan Swaps:
Interest rate swaps and caps	$	1,243,199	$	77,753	$	77,458	$	936,834	$	75,840	$	74,683
Other contracts:
Interest rate lock commitments		33,293		—		171		10,071		—		43
Forward TBA contracts		51,000		322		—		14,500		53		—
Total derivatives			$	78,075	$	77,629			$	75,893	$	74,726

Effect of Derivative Instruments on the Income Statement

The table below presents the change in the fair value of the Company’s derivative financial instruments reflected within non-interest income on the consolidated income statement for the three and six months ended June 30, 2023 and 2022, respectively.


		For the Three Months Ended June 30,					For the Six Months Ended June 30,
(unaudited, in thousands)	Location of Gain/(Loss)	2023			2022		2023			2022
Interest rate swaps and caps	Other income	$	176		$	1,142	$	(863	)	$	2,603
Interest rate lock commitments	Mortgage banking income		(315	)		362		(128	)		44
Forward TBA contracts	Mortgage banking income		637			605		448			2,048
Total		$	498		$	2,109	$	(543	)	$	4,695

Credit-risk-related Contingent Features

Wesbanco has agreements with its derivative counterparties that contain a provision, which provides that if Wesbanco defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Wesbanco could also be declared in default on its derivative obligations.

Wesbanco also has agreements with certain of its derivative counterparties that contain a provision where if Wesbanco fails to maintain its status as either a “well” or “adequately-capitalized” institution, then the counterparty could terminate the derivative positions and Wesbanco would be required to settle its obligations under the agreements.

Dependent upon the net present value of the underlying swaps, Wesbanco has minimum collateral posting thresholds with certain of its derivative counterparties. If Wesbanco had breached any of these provisions at June 30, 2023, it could have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparties. In certain market situations, Wesbanco can also request collateral from the derivative counterparties. Due to the recent rise in interest rates, as of June 30, 2023, Wesbanco is holding collateral from various derivative counterparties with a market value of $44.3 million.

NOTE 6. ~~PENSION PLAN~~BENEFIT PLANS

The following table presents the net periodic pension ~~cost~~income for ~~WesBanco’s~~Wesbanco’s Defined Benefit Pension Plan (the “Plan”) and the related components:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,						For the Three Months Ended June 30,						For the Six Months Ended June 30,
*(unaudited, in thousands)*	2017			2016			2017			2016			2023			2022			2023			2022
Service cost – benefits earned during year	$	650		$	703		$	1,929		$	2,095		$	354		$	546		$	704		$	1,086
Interest cost on projected benefit obligation		1,107			1,280			3,287			3,813			1,572			1,026			3,126			2,039
Expected return on plan assets		(1,928	)		(1,940	)		(5,721	)		(5,778	)		(2,781	)		(2,885	)		(5,531	)		(5,738	)
Amortization of prior service cost		7			8			19			20			(9	)		(9	)		(18	)		(17	)
Amortization of net loss		812			759			2,409			2,261			225			126			448			251

Net periodic pension cost	$	648		$	810		$	1,923		$	2,411

Net periodic pension income													$	(639	)	$	(1,196	)	$	(1,271	)	$	(2,379	)

The service cost of $0.7 million and $1.1 million for the six months ended June 30, 2023 and 2022, respectively, is included in salaries and wages, and periodic pension income of $2.0 million and $3.5 million for the six months ended June 30, 2023 and 2022, respectively, is included in employee benefits.

The Plan covers all employees of ~~WesBanco~~Wesbanco and its subsidiaries who were hired on or before August 1, 2007 who satisfy minimum age and length of service requirements, and is not available to employees hired after such date.

A minimum required contribution ~~of $2.7 million~~ is ~~due~~not required for ~~2017, which could be all or partially offset by the Plan’s $46.9 million available credit balance. A~~2023, and Wesbanco currently does not expect to make a voluntary contribution ~~of $2.5 million was made in June 2017.~~

~~On September 9, 2016, WesBanco assumed YCB’s obligation for a predecessor bank’s participation in~~to the Pentegra Defined Benefit Plan for Financial Institutions (“Pentegra Plan”). The participating employer plan had been frozen to new participants since 2002. WesBanco spun out the assets from the Pentegra Plan in the second quarter of 2017, and contributed approximately $2.8 million to satisfy the final costs to do so. The spin off had no impact on earnings as the liability was included in YCB’s balance sheet as of the acquisition date. The $8.4 million in distributed assets from the Pentegra Plan were transferred to a new plan providing the same benefits to the participants.2023.

NOTE 7. FAIR VALUE MEASUREMENT

Fair value estimates are based on quoted market prices, if available, quoted market prices of similar assets or liabilities, or the present value of expected future cash flows and other valuation techniques. These valuations are significantly affected by discount rates, cash flow assumptions, and risk assumptions used. Therefore, fair value estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realizable in an immediate settlement of the instruments.

Fair value is determined at one point in time and is not representative of future value. These amounts do not reflect the total value of a going concern organization. Management does not have the intention to dispose of a significant portion of its assets and liabilities, and therefore the unrealized gains or losses should not be interpreted as a forecast of future earnings and cash flows.

The following is a discussion of assets and liabilities measured at fair value on a recurring basis and valuation techniques applied:

Investment securities: The fair value of investment securities which are measured on a recurring basis are determined primarily by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other similar securities. These securities are classified within level 1 or 2 in the fair value hierarchy. ~~Certain equity securities that are lightly traded inover-the-counter~~ ~~markets are classified as level 2 in the fair value hierarchy, as quoted market prices may not be available on the fair value measurement date.~~ Positions that are not traded in active markets for which valuations are generated using assumptions not observable in the market or management’s best estimate are classified within level 3 of the fair value hierarchy. This includes certain specific municipal debt issues for which the credit quality and discount rate must be estimated.

Loans held for sale: Loans held for sale are carried, in aggregate, at fair value as Wesbanco previously elected the fair value option. The use of a valuation model using quoted prices of similar instruments are significant inputs in arriving at the fair value and therefore loans held for sale are classified within level 2 of the fair value hierarchy.

Derivatives: ~~WesBanco~~ Wesbanco enters into interest rate swap agreements with qualifying commercial customers to meet their financing, interest rate and other risk management needs. These agreements provide the customer the ability to convert from variable to fixed interest rates. The credit risk associated with derivatives executed with customers is essentially the same as that involved in extending loans and is subject to normal credit policies and monitoring. Those interest rate swaps are ~~simultaneously~~economically hedged by offsetting interest rate swaps that ~~WesBanco~~Wesbanco executes with derivative counterparties in order to offset its exposure on the fixed components of the customer interest rate swap agreements. The interest rate swap agreement with the loan customer and with the counterparty is reported at fair value in other assets and other liabilities on the consolidated balance sheet with any resulting gain or loss recorded in current period earnings as other income and other expense.

~~WesBanco~~Wesbanco enters into forward TBA contracts to manage the interest rate risk between the loan commitments to the customer and the closing of the loan for loans that will be sold on a mandatory basis to secondary market investors. The forward TBA contract is reported at fair value in other assets and other liabilities on the consolidated balance sheet with any resulting gain or loss recorded in current period’s earnings as mortgage banking income.

Wesbanco determines the fair value for derivatives using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects contractual terms of the derivative, including the period to maturity, and uses observable ~~market based~~market-based inputs, including interest rate curves and implied volatilities. ~~WesBanco~~Wesbanco incorporates credit valuation adjustments to appropriately reflect both its ownnon-performance risk and the respective counterparty’snon-performance risk in the fair value ~~measurements.~~

measurements, and therefore both the derivative asset and derivative liability are classified within level 2 of the fair value hierarchy.

We may be required from time to time to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or write-downs of individual assets and liabilities.

~~Impaired~~Collateral dependent loans: ~~Impaired~~ Collateral dependent loans are carried at the ~~lower of~~amortized cost orbasis less the ~~fair value of~~specific allowance calculated under the ~~collateral for collateral-dependent loans.~~Current Expected Credit Losses Accounting Standard. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The use of independent appraisals, discounted cash flow models and management’s best judgment are significant inputs in arriving at the fair value measure of the underlying collateral and impaireddependent loans are calculated using a cost basis approach or collateral value approach, and therefore are classified within level 3 of the fair value hierarchy.

Other real estate owned and repossessed assets: Other real estate owned and repossessed assets are carried at the lower of the investment in the assets or the fair value of the assets less estimated selling costs. The use of independent appraisals and management’s best judgment are significant inputs in arriving at the fair value measure of the underlying collateral, and therefore other real estate owned and repossessed assets are classified within level 3 of the fair value hierarchy.

~~Loans held for sale:~~ Loans held for sale are carried, in aggregate, at the lower of cost or fair value. The use of a valuation model using quoted prices of similar instruments are significant inputs in arriving at the fair value and therefore loans held for sale are classified within level 2 of the fair value hierarchy.26

~~Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.~~

The fair value amounts presented in the table below are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The following tables set forth ~~WesBanco’s~~Wesbanco’s financial assets and liabilities that were accounted for at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as of ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016:~~2022:


				September 30, 2017															June 30, 2023
				Fair Value Measurements Using:															Fair Value Measurements Using:
	September 30, 2017			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs			Investments Measured at Net Asset			June 30,			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
*(unaudited, in thousands)*			(level 1)			(level 2)			(level 3)			Value			2023			(level 1)			(level 2)			(level 3)
Recurring fair value measurements	September 30, 2017
Trading securities	$	7,929		$	6,457		$	—		$	—		$	1,472
Securities -available-for-sale
Equity securities																$	11,948		$	11,948		$	—		$	—
Available-for-sale debt securities
U.S. Government sponsored entities and agencies		72,319			—			72,319			—			—			211,951			—			211,951			—
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		963,474			—			963,474			—			—			1,721,887			—			1,721,887			—
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		121,834			—			121,834			—			—			305,242			—			305,242			—
Obligations of state and political subdivisions		106,847			—			106,847			—			—
Obligations of states and political subdivisions																	78,431			—			77,254			1,177
Corporate debt securities		35,503			—			35,503			—			—			11,711			—			11,711			—
Equity securities		5,555			5,555			—			—			—

Total securities -available-for-sale	$	1,305,532		$	5,555		$	1,299,977		$	—		$	—

Other assets - interest rate derivatives agreements	$	5,506		$	—		$	5,506		$	—		$	—

Total available-for-sale debt securities																$	2,329,222		$	—		$	2,328,045		$	1,177
Loans held for sale																	28,970			—			28,970			—
Other assets - interest rate swaps																	77,753			—			77,753			—
Total assets recurring fair value measurements	$	1,318,967		$	12,012		$	1,305,483		$	—		$	1,472		$	2,447,893		$	11,948		$	2,434,768		$	1,177

Other liabilities - interest rate derivatives agreements	$	5,443		$	—		$	5,443		$	—		$	—

Other liabilities - interest rate swaps																$	77,458		$	—		$	77,458		$	—
Total liabilities recurring fair value measurements	$	5,443		$	—		$	5,443		$	—		$	—		$	77,458		$	—		$	77,458		$	—

Nonrecurring fair value measurements
Impaired loans	$	4,538		$	—		$	—		$	4,538		$	—
Collateral dependent loans																$	941		$	—		$	—		$	941
Other real estate owned and repossessed assets		5,782			—			—			5,782			—			1,432			—			—			1,432
Loans held for sale		26,888			—			26,888			—			—

Total nonrecurring fair value measurements	$	37,208		$	—		$	26,888		$	10,320		$	—		$	2,373		$	—		$	—		$	2,373


			December 31, 2022
			Fair Value Measurements Using:
	December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	2022		(level 1)		(level 2)		(level 3)
Recurring fair value measurements
Equity securities	$	11,506	$	11,506	$	—	$	—
Available-for-sale debt securities
U.S. Government sponsored entities and agencies		225,970		—		225,970		—
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		1,846,053		—		1,846,053		—
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		349,731		—		349,731		—
Obligations of states and political subdivisions		92,228		—		91,049		1,179
Corporate debt securities		15,158		—		15,158		—
Total available-for-sale debt securities	$	2,529,140	$	—	$	2,527,961	$	1,179
Loans held for sale		8,249		—		8,249		—
Other assets - interest rate swaps		75,840		—		75,840		—
Total assets recurring fair value measurements	$	2,624,735	$	11,506	$	2,612,050	$	1,179
Other liabilities - interest rate swaps	$	74,683	$	—	$	74,683	$	—
Total liabilities recurring fair value measurements	$	74,683	$	—	$	74,683	$	—
Nonrecurring fair value measurements
Collateral dependent loans	$	878	$	—	$	—	$	878
Other real estate owned and repossessed assets		1,486		—		—		1,486
Total nonrecurring fair value measurements	$	2,364	$	—	$	—	$	2,364

      December 31, 2016
      Fair Value Measurements Using:
   December 31,

Quoted Prices in
Active Markets
for Identical
Assets

Significant
Other
Observable
Inputs

Significant
Unobservable
Inputs

Investments
Measured at
Net Asset

(unaudited, in thousands)
   2016    (level 1)    (level 2)    (level 3)    Value
Recurring fair value measurements

Trading securities
   $ 7,071    $ 5,633    $ —      $ —      $ 1,438
Securities -available-for-sale

U.S. Government sponsored entities and agencies
   54,043    —      54,043    —      —
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies
   938,289    —      938,289    —      —
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies
   96,810    —      96,810    —      —
Obligations of state and political subdivisions
   111,663    —      111,663    —      —
Corporate debt securities
   35,301    —      35,301    —      —
Equity securities
   5,070    2,938    2,132    —      —










Total securities -available-for-sale
   $ 1,241,176    $ 2,938    $ 1,238,238    $ —      $ —










Other assets - interest rate derivatives agreements
   $ 5,596    $ —      $ 5,596    $ —      $ —










Total assets recurring fair value measurements
   $ 1,253,843    $ 8,571    $ 1,243,834    $ —      $ 1,438










Other liabilities - interest rate derivatives agreements
   $ 5,199    $ —      $ 5,199    $ —      $ —










Total liabilities recurring fair value measurements
   $ 5,199    $ —      $ 5,199    $ —      $ —










Nonrecurring fair value measurements

Impaired loans
   $ 3,405    $ —      $ —      $ 3,405    $ —
Other real estate owned and repossessed assets
   8,346    —      —      8,346    —
Loans held for sale
   17,315    —      17,315    —      —










Total nonrecurring fair value measurements
   $ 29,066    $ —      $ 17,315    $ 11,751    $ —










27

~~WesBanco’s~~

Wesbanco’s policy is to recognize transfers between levels as of the actual date of the event or change in circumstances that caused the transfer. There were no transfers between level 1, 2 or 3 for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 or for the year ended December 31, ~~2016.~~2022.

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which ~~WesBanco~~Wesbanco has utilized level 3 inputs to determine fair value:

   Quantitative Information about Level 3 Fair Value Measurements
   Fair Value    Valuation Unobservable Range (Weighted
(unaudited, in thousands)
   Estimate    Techniques Input
Average)
September 30, 2017

Impaired loans
   $ 4,538    Appraisal of collateral ⁽¹⁾ Appraisal adjustments ⁽²⁾ 0% to (4.8%) /(1.9%)
      Liquidation expenses ⁽²⁾ (7.6%) to (8.0%) / (7.9%)
Other real estate owned and repossessed assets
   5,782    Appraisal of collateral ^(1), (3)
December 31, 2016:

Impaired loans
   $ 3,405    Appraisal of collateral ⁽¹⁾ Appraisal adjustments⁽²⁾ 0% to (70.0%) / (36.6%)
      Liquidation expenses⁽²⁾ (1.5%) to (8.0%) / (4.6%)
Other real estate owned and repossessed assets
   8,346    Appraisal of collateral^(1),⁽³⁾


	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range (Weighted
(unaudited, in thousands)	Estimate		Techniques	Input	Average)
June 30, 2023
Collateral dependent loans	$	941	Appraisal of collateral (1)	Appraisal adjustments (2)	(0.0%)/(0.0%)
				Liquidation expenses (2)	(3.7%)/(3.7%)
Other real estate owned and repossessed assets	$	1,432	Appraisal of collateral (1), (3)
December 31, 2022
Collateral dependent loans	$	878	Appraisal of collateral (1)	Appraisal adjustments (2)	(0.0%)/(0.0%)
				Liquidation expenses (2)	(8.0%)/(8.0%)
Other real estate owned and repossessed assets	$	1,486	Appraisal of collateral (1), (3)

⁽¹⁾	~~Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs, which are not identifiable.~~

⁽²⁾	Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expenses are presented as a percent of the appraisal.

⁽³⁾	~~Includes estimated liquidation expenses and numerous dissimilar qualitative adjustments by management which are not identifiable.~~

(1)

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs, which are not identifiable.

(2)

Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expense are presented as a percent of the appraisal.

(3)

Includes estimated liquidation expenses and numerous dissimilar qualitative adjustments by management, which are not identifiable.

The estimated fair values of ~~WesBanco’s~~Wesbanco’s financial instruments are summarized below:


																	Fair Value Measurements at
																	June 30, 2023
					Fair Value Measurements at September 30, 2017								Carrying		Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
*(unaudited, in thousands)*	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (level 1)		Significant Other Observable Inputs (level 2)		Significant Unobservable Inputs (level 3)		Investments Measured at Net Asset Value		Amount		Estimate		(level 1)		(level 2)		(level 3)
Financial Assets
Cash and due from banks	$	110,871	$	110,871	$	110,871	$	—	$	—	$	—	$	562,318	$	562,318	$	562,318	$	—	$	—
Trading securities		7,929		7,929		6,457		—		—		1,472
Securitiesavailable-for-sale		1,305,532		1,305,532		5,555		1,299,977		—		—
Securitiesheld-to-maturity		1,025,688		1,044,748		—		1,044,135		613		—
Equity securities														11,948		11,948		11,948		—		—
Available-for-sale debt securities														2,329,222		2,329,222		—		2,328,045		1,177
Net held-to-maturity debt securities														1,224,277		1,072,229		—		1,071,938		291
Net loans		6,327,562		6,241,388		—		—		6,241,388		—		11,009,798		10,931,441		—		—		10,931,441
Loans held for sale		26,888		26,888		—		26,888		—		—		28,970		28,970		—		28,970		—
Other assets - interest rate derivatives		5,506		5,506		—		5,506		—		—
Other assets - interest rate swaps														77,753		77,753		—		77,753		—
Accrued interest receivable		30,152		30,152		30,152		—		—		—		69,773		69,773		69,773		—		—

Financial Liabilities
Deposits		7,101,025		7,112,593		5,766,959		1,345,634		—		—		12,861,434		12,855,884		11,901,327		954,557		—
Federal Home Loan Bank borrowings		1,015,011		1,014,117		—		1,014,117		—		—		1,380,000		1,377,968		—		1,377,968		—
Other borrowings		165,576		165,579		163,532		2,047		—		—		101,286		95,095		95,095		—		—
Subordinated debt and junior subordinated debt		164,278		138,421		—		138,421		—		—		281,854		245,460		—		245,460		—
Other liabilities - interest rate derivatives		5,443		5,443		—		5,443		—		—
Other liabilities - interest rate swaps														77,458		77,458		—		77,458		—
Accrued interest payable		3,924		3,924		3,924		—		—		—		8,869		8,869		8,869		—		—

         Fair Value Measurements at
December 31, 2016
(unaudited, in thousands)
   Carrying
Amount    Fair Value
Estimate    Quoted Prices in
Active Markets
for Identical
Assets
(level 1)    Significant Other
Observable
Inputs
(level 2)    Significant
Unobservable
Inputs
(level 3)    Investments
Measured at Net
Asset Value
Financial Assets

Cash and due from banks
   $ 128,170    $ 128,170    $ 128,170    $ —      $ —      $ —
Trading securities
   7,071    7,071    5,633    —      —      1,438
Securitiesavailable-for-sale
   1,241,176    1,241,176    2,938    1,238,238    —      —
Securitiesheld-to-maturity
   1,067,967    1,076,790    —      1,076,189    601    —
Net loans
   6,205,762    6,073,558    —      —      6,073,558    —
Loans held for sale
   17,315    17,315    —      17,315    —      —
Other assets - interest rate derivatives
   5,596    5,596    —      5,596    —      —
Accrued interest receivable
   28,299    28,299    28,299    —      —      —
Financial Liabilities

Deposits
   7,040,879    7,052,501    5,545,057    1,507,444    —      —
Federal Home Loan Bank borrowings
   968,946    974,430    —      974,430    —      —
Other borrowings
   199,376    199,385    197,164    2,221    —      —
Subordinated debt and junior subordinated debt
   163,598    134,859    —      134,859    —      —
Other liabilities - interest rate derivatives
   5,199    5,199    —      5,199    —      —
Accrued interest payable
   2,204    2,204    2,204    —      —      —
28


					Fair Value Measurements at
					December 31, 2022
	Carrying		Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Amount		Estimate		(level 1)		(level 2)		(level 3)
Financial Assets
Cash and due from banks	$	408,411	$	408,411	$	408,411	$	—	$	—
Equity securities		11,506		11,506		11,506		—		—
Available-for-sale debt securities		2,529,140		2,529,140		—		2,527,961		1,179
Net held-to-maturity debt securities		1,248,409		1,084,390		—		1,084,071		319
Net loans		10,584,938		9,487,038		—		—		9,487,038
Loans held for sale		8,249		8,249		—		8,249		—
Other assets - interest rate swaps		75,840		75,840		—		75,840		—
Accrued interest receivable		68,522		68,522		68,522		—		—

Financial Liabilities
Deposits		13,131,090		13,142,943		12,245,272		897,671		—
Federal Home Loan Bank borrowings		705,000		705,094		—		705,094		—
Other borrowings		135,069		122,926		122,926		—		—
Subordinated debt and junior subordinated debt		281,404		258,631		—		258,631		—
Other liabilities - interest rate swaps		74,683		74,683		—		74,683		—
Accrued interest payable		4,593		4,593		4,593		—		—

The following methods and assumptions were used to measure the fair value of financial instruments recorded at cost on ~~WesBanco’s~~Wesbanco’s consolidated balance sheets:

Cash and due from banks:The carrying amount for cash and due from banks is a reasonable estimate of fair value.

~~Securitiesheld-to-maturity:~~Held-to-maturity debt securities: Fair values for debt securitiesheld-to-maturity are determined in the same manner as ~~the~~ investment securities, which are described above.

Net loans: Fair values for loans are estimated in a valuation model using a discounted cash flow methodology. The discount rates take into account interest rates currently being offered to customers for loans with similar terms, the credit risk associated with the loan and other market factors, including liquidity. ~~WesBanco~~Wesbanco believes the discount rates are consistent with transactions occurring in the marketplace for both performing and distressed loan types. The carrying value is net of the allowance for loan losses and other associated premiums and discounts. Due to the significant judgment involved in evaluating credit quality, loans are classified within level 3 of the fair value hierarchy.

Accrued interest receivable:The carrying amount of accrued interest receivable approximates its fair ~~value~~.value.

Deposits:The carrying amount is considered a reasonable estimate of fair value for demand, savings and other variable rate deposit accounts. The fair value of fixed maturity certificates of deposit is estimated by a discounted cash flow method using rates currently offered for deposits of similar remaining maturities.

Federal Home Loan Bank borrowings:The fair value of FHLB borrowings is based on rates currently available to ~~WesBanco~~Wesbanco for borrowings with similar terms and remaining maturities.

Other borrowings:The carrying amount of federal funds purchased and overnight sweep accounts generally approximate fair value. Other repurchase agreements are based on quoted market prices if available. If market prices are not available, for certain fixed and adjustable rate repurchase agreements, then quoted market prices of similar instruments are used.

Subordinated debt and junior subordinated debt:The fair value of subordinated debt is ~~estimated using discounted cash flow analyses based~~determined primarily by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the ~~current borrowing rates for~~securities’ relationship to other similar ~~types of borrowing arrangements.~~securities. These securities are classified within level 2 in the fair value hierarchy. Due to the pooled nature of junior subordinated debt owed to unconsolidated subsidiary trusts, which are not actively traded, estimated fair value is ~~based on recent similar transactions of single-issuer trust preferred securities.~~determined by using comparable corporate bond indices and swap rates from the financial services sector and factoring in the applicable credit spreads and optional early redemption provisions.

Accrued interest payable:The carrying amount of accrued interest payable approximates its fair value.

Off-balance sheet financial instruments:Off-balance sheet financial instruments consist of commitments to extend credit, including letters of credit. Fair values for commitments to extend credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present credit standing of the counterparties. The estimated fair value of the commitments to extend credit and letters of credit are insignificant and therefore are not presented in the above tables.

NOTE 8. REVENUE RECOGNITION

Interest income, net securities gains (losses) and bank-owned life insurance are not in scope of ASC 606, Revenue from Contracts with Customers. For the revenue streams in scope of ASC 606 - trust fees, service charges on deposits, net securities brokerage revenue, payment processing fees, electronic banking fees, mortgage banking income and net gain or loss on sale of other real estate owned and other assets – there are no significant judgments related to the amount and timing of revenue recognition.

The following table summarizes the point of revenue recognition and the income recognized for each of the revenue streams for the three and six months ended June 30, 2023 and 2022, respectively:


	Point of Revenue	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(unaudited, in thousands)	Recognition	2023		2022			2023		2022
Revenue Streams
Trust fees
Trust account fees	Over time	$	5,009	$	4,416		$	10,614	$	9,958
WesMark fees	Over time		1,909		2,111			3,798		4,404
Total trust fees			6,918		6,527			14,412		14,362
Service charges on deposits
Commercial banking fees	Over time		650		602			1,259		1,170
Personal service charges	At a point in time and over time		5,582		5,885			11,142		11,407
Total service charges on deposits			6,232		6,487			12,401		12,577
Net securities brokerage revenue
Annuity commissions	At a point in time		1,840		1,679			3,885		3,261
Equity and debt security trades	At a point in time		149		8			149		65
Managed money	Over time		284		327			567		654
Trail commissions	Over time		250		244			497		498
Total net securities brokerage revenue			2,523		2,258			5,098		4,478

Payment processing fees (1)	At a point in time and over time		951		877			1,822		1,618
Electronic banking fees	At a point in time		5,010		5,154			9,615		10,499
Mortgage banking income	At a point in time		601		1,328			1,027		3,251
Net gain (loss) on other real estate owned and other assets (2)	At a point in time and over time		871		(1,302	)		1,104		(2,108	)

(1)

Included in other non-interest income.

(2)

The portion of this line item relating to the change in the fair value of the underlying investments funded by Wesbanco CDC is not within the scope of ASC 606. There were no gains or losses recorded in the current period; however, losses of $1.4 million were recorded for the three months ended June 30, 2022, and losses of $2.6 million were recorded for the six months ended June 30, 2022.

NOTE 9. COMPREHENSIVE ~~INCOME~~INCOME/(LOSS)

The activity in accumulated other comprehensive ~~income~~income/(loss) for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022 is as follows:

   Accumulated Other Comprehensive Income/(Loss)⁽¹⁾
(unaudited, in thousands)
   Defined
Benefit
Pension
Plan Unrealized
Gains (Losses)
on Securities
Available-for-Sale Unrealized Gains
on Securities
Transferred from
Available-for-Sale
to Held-to-Maturity Total
Balance at December 31, 2016
   $ (17,758 ) $ (9,890 ) $ 522 $ (27,126 )


Other comprehensive income before reclassifications
   —   4,740 —   4,740
Amounts reclassified from accumulated other comprehensive income
   1,679 35 (165 ) 1,549


Period change
   1,679 4,775 (165 ) 6,289


Balance at September 30, 2017
   $ (16,079 ) $ (5,115 ) $ 357 $ (20,837 )


Balance at December 31, 2015
   $ (17,539 ) $ (4,162 ) $ 747 $ (20,954 )


Other comprehensive income before reclassifications
   —   16,065 —   16,065
Amounts reclassified from accumulated other comprehensive income
   1,407 (1,428 ) (152 ) (173 )


Period change
   1,407 14,637 (152 ) 15,892


Balance at September 30, 2016
   $ (16,132 ) $ 10,475 $ 595 $ (5,062 )


	Accumulated Other Comprehensive Income/(Loss) (1)
(unaudited, in thousands)	Defined Benefit Plans			Unrealized Gains (Losses) on Debt Securities Available-for-Sale			Total
Balance at December 31, 2022	$	(535	)	$	(261,881	)	$	(262,416	)
Other comprehensive loss before reclassifications		—			(2,481	)		(2,481	)
Amounts reclassified from accumulated other comprehensive loss		150			120			270
Period change		150			(2,361	)		(2,211	)
Balance at June 30, 2023	$	(385	)	$	(264,242	)	$	(264,627	)

Balance at December 31, 2021	$	(398	)	$	(4,722	)	$	(5,120	)
Other comprehensive loss before reclassifications		—			(171,058	)		(171,058	)
Amounts reclassified from accumulated other comprehensive loss		109			8			117
Period change		109			(171,050	)		(170,941	)
Balance at June 30, 2022	$	(289	)	$	(175,772	)	$	(176,061	)

⁽¹⁾	~~All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal and State income tax rate approximating 37%.~~

(1)

All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal and State income tax rate approximating 24% in both periods presented.

The following table provides details about amounts reclassified from accumulated other comprehensive income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016:~~2022:

Details about Accumulated Other Comprehensive
Income Components
   For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
Affected Line Item in the Statement of
Net Income
(unaudited, in thousands)    2017 2016 2017 2016
Securitiesavailable-for-sale⁽¹⁾:

Net securities gains reclassified into earnings
   $ —   $ (579 ) $ 55 $ (2,251 ) Net securities gains(Non-interest income)
Related income tax expense (benefit)
   —   211 (20 ) 823 Provision for income taxes


Net effect on accumulated other comprehensive income for the period
   —   (368 ) 35 (1,428 )


Securitiesheld-to-maturity⁽¹⁾:

Amortization of unrealized gain transferred fromavailable-for-sale
   (66 ) (77 ) (256 ) (242 ) Interest and dividends on securities (Interest and dividend income)
Related income tax expense
   24 28 91 90 Provision for income taxes


Net effect on accumulated other comprehensive income for the period
   (42 ) (49 ) (165 ) (152 )


Defined benefit pension plan⁽²⁾:

Amortization of net loss and prior service costs
   816 766 2,429 2,280 Employee benefits(Non-interest expense)
Related income tax benefit
   (303 ) (280 ) (750 ) (873 ) Provision for income taxes


Net effect on accumulated other comprehensive income for the period
   513 486 1,679 1,407


Total reclassifications for the period
   $ 471 $ 69 $ 1,549 $ (173 )


Details about Accumulated Other Comprehensive Income/(Loss) Components	For the Three Months Ended June 30,						For the Six Months Ended June 30,						Affected Line Item in the Statement of Comprehensive Income
(unaudited, in thousands)	2023			2022			2023			2022
Debt securities available-for-sale (1):
Net securities losses reclassified into earnings	$	8		$	9		$	159		$	10		Net securities gains/(losses) (Non-interest income)
Related income tax effect ⁽²⁾		(2	)		(2	)		(39	)		(2	)	Provision for income taxes
Net effect on accumulated other comprehensive income for the period		6			7			120			8

Defined benefit plans (3):
Amortization of net loss and prior service costs		99			73			198			144		Employee benefits (Non-interest expense)
Related income tax effect ⁽²⁾		(24	)		(18	)		(48	)		(35	)	Provision for income taxes
Net effect on accumulated other comprehensive income for the period		75			55			150			109
Total reclassifications for the period	$	81		$	62		$	270		$	117

⁽¹⁾	~~For additional detail related to unrealized gains on securities and related amounts reclassified from accumulated other comprehensive income, see Note 4, “Securities.”~~

⁽²⁾	~~Included in the computation of net periodic pension cost. See Note 6, “Pension Plan” for additional detail.~~

(1)

For additional detail related to unrealized gains on securities and related amounts reclassified from accumulated other comprehensive income, see Note 3, “Securities.”

(2)

Income tax expense or benefit is calculated using a combined Federal and State income tax rate approximating 24% in both periods presented.

(3)

Included in the computation of net periodic pension cost. See Note 6, “Benefit Plans” for additional detail.

NOTE 9.10. COMMITMENTS AND CONTINGENT LIABILITIES

Commitments —In the normal course of business, ~~WesBanco~~Wesbanco offersoff-balance sheet credit arrangements to enable its customers to meet their financing objectives. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. ~~WesBanco’s~~Wesbanco’s exposure to credit losses in the event ofnon-performance by the other parties to the financial instruments for commitments to extend credit and standby letters of credit is limited to the contractual amount of those instruments. ~~WesBanco~~Wesbanco uses the same credit policies in making commitments and conditional obligations as for all other lending. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The allowance for credit losses associated with commitments was ~~$0.6~~$10.1 million ~~as of both September~~and $8.4 million at June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, respectively, and is included in other liabilities on the Consolidated Balance Sheets.

Letters of credit are conditional commitments issued by banks to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including normal business activities, bond financing and similar transactions. Letters of credit are considered guarantees. The liability associated with letters of credit was ~~$0.2~~$0.3 million and $0.2 million as of ~~both September~~June 30, ~~2017~~2023 and December 31, ~~2016.~~

2022, respectively.

Contingent obligations to purchase loans funded by other entities include ~~affordable housing plan guarantees,~~ credit card guarantees, ~~and mortgages~~loans sold ~~into~~with recourse as well as obligations to the ~~secondary market with recourse. Affordable housing plan guarantees are performance guarantees for various building project loans. The guarantee amortizes as the loan balances decrease.~~FHLB. Credit card guarantees are credit card balances not owned by ~~WesBanco,~~Wesbanco, whereby the Bank guarantees the performance of the cardholder.

The following table presents total commitments to extend credit, guarantees and various letters of credit outstanding:


	September 30,		December 31,		June 30,		December 31,
*(unaudited, in thousands)*	2017		2016		2023		2022
Lines of credit	$	1,468,470	$	1,418,329	$	4,204,247	$	3,806,398
Loans approved but not closed		243,723		185,253		466,599		398,204
Overdraft limits		126,936		126,517		389,271		380,143
Letters of credit		32,328		32,907		33,991		30,362
Contingent obligations to purchase loans funded by other entities		6,974		13,036
Contingent obligations and other guarantees						23,002		30,782

Contingent Liabilities —~~WesBanco~~ Wesbanco is a party to various legal and administrative proceedings and claims. While any litigation contains an element of uncertainty, management does not believe that a material loss related to such proceedings or claims pending or known to be threatened is reasonably possible.

NOTE ~~10.~~11. BUSINESS SEGMENTS

~~WesBanco~~Wesbanco operates two reportable segments: community banking and trust and investment services. ~~WesBanco’s~~Wesbanco’s community banking segment offers services traditionally offered by full-service commercial banks, including commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and certainnon-traditional offerings, such as insurance and securities brokerage services. The trust and investment services segment offers trust services as well as various alternative investment products including mutual funds. The market value of assets managed or held in custody by the trust and investment services segment was approximately ~~$3.9~~$5.1 billion and ~~$3.7~~$4.8 billion at ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively. These assets are held by ~~WesBanco~~Wesbanco in fiduciary or agency capacities for their customers and therefore are not included as assets on ~~WesBanco’s~~Wesbanco’s Consolidated Balance Sheets.

Condensed financial information by business segment is presented below:


				Trust and
	Community			Investment
(unaudited, in thousands)	Banking			Services		Consolidated
For The Three Months Ended June 30, 2023
Interest and dividend income	$	176,055		$	—	$	176,055
Interest expense		54,488			—		54,488
Net interest income		121,567			—		121,567
Provision for credit losses		3,028			—		3,028
Net interest income after provision for credit losses		118,539			—		118,539
Non-interest income		24,923			6,918		31,841
Non-interest expense		91,818			4,619		96,437
Income before provision for income taxes		51,644			2,299		53,943
Provision for income taxes		8,580			483		9,063
Net income		43,064			1,816		44,880
Preferred stock dividends		2,531			—		2,531
Net income available to common shareholders	$	40,533		$	1,816	$	42,349

For The Three Months Ended June 30, 2022
Interest and dividend income	$	118,447		$	—	$	118,447
Interest expense		6,219			—		6,219
Net interest income		112,228			—		112,228
Provision for credit losses		(812	)		—		(812	)
Net interest income after provision for credit losses		113,040			—		113,040
Non-interest income		20,456			6,527		26,983
Non-interest expense		83,112			3,907		87,019
Income before provision for income taxes		50,384			2,620		53,004
Provision for income taxes		9,706			550		10,256
Net income		40,678			2,070		42,748
Preferred stock dividends		2,531			—		2,531
Net income available to common shareholders	$	38,147		$	2,070	$	40,217

For the Six Months Ended June 30, 2023
Interest and dividend income	$	336,609		$	—	$	336,609
Interest expense		90,711			—		90,711
Net interest income		245,898			—		245,898
Provision for credit losses		6,605			—		6,605
Net interest income after provision for credit losses		239,293			—		239,293
Non-interest income		45,081			14,412		59,493
Non-interest expense		183,433			9,127		192,560
Income before provision for income taxes		100,941			5,285		106,226
Provision for income taxes		17,895			1,110		19,005
Net income		83,046			4,175		87,221
Preferred stock dividends		5,063			—		5,063
Net income available to common shareholders	$	77,983		$	4,175	$	82,158

For the Six Months Ended June 30, 2022
Interest and dividend income	$	230,621		$	—	$	230,621
Interest expense		10,683			—		10,683
Net interest income		219,938			—		219,938
Provision for credit losses		(4,250	)		—		(4,250	)
Net interest income after provision for credit losses		224,188			—		224,188
Non-interest income		43,003			14,362		57,365
Non-interest expense		166,339			8,230		174,569
Income before provision for income taxes		100,852			6,132		106,984
Provision for income taxes		18,826			1,288		20,114
Net income		82,026			4,844		86,870
Preferred stock dividends		5,063			—		5,063
Net income available to common shareholders	$	76,963		$	4,844	$	81,807

      Trust and
   Community    Investment
(unaudited, in thousands)
   Banking    Services    Consolidated
For the Three Months ended September 30, 2017:

Interest income
   $ 85,489    $ —      $ 85,489
Interest expense
   11,235    —      11,235






Net interest income
   74,254    —      74,254
Provision for credit losses
   2,516    —      2,516






Net interest income after provision for credit losses
   71,738    —      71,738
Non-interest income
   15,541    5,358    20,899
Non-interest expense
   52,355    3,399    55,754






Income before provision for income taxes
   34,924    1,959    36,883
Provision for income taxes
   9,744    783    10,527






Net income
   $ 25,180    $ 1,176    $ 26,356






For the Three Months ended September 30, 2016:

Interest income
   $ 70,092    $ —      $ 70,092
Interest expense
   8,066    —      8,066






Net interest income
   62,026    —      62,026
Provision for credit losses
   2,214    —      2,214






Net interest income after provision for credit losses
   59,812    —      59,812
Non-interest income
   15,604    5,413    21,017
Non-interest expense
   54,569    3,032    57,601






Income before provision for income taxes
   20,847    2,381    23,228
Provision for income taxes
   4,841    952    5,793






Net income
   $ 16,006    $ 1,429    $ 17,435






For the Nine Months ended September 30, 2017:

Interest income
   $ 247,573    $ —      $ 247,573
Interest expense
   30,461    —      30,461






Net interest income
   217,112    —      217,112
Provision for credit losses
   7,610    —      7,610






Net interest income after provision for credit losses
   209,502    —      209,502
Non-interest income
   48,833    17,073    65,906
Non-interest expense
   156,102    9,921    166,023






Income before provision for income taxes
   102,233    7,152    109,385
Provision for income taxes
   27,940    2,861    30,801






Net income
   $ 74,293    $ 4,291    $ 78,584






For the Nine Months ended September 30, 2016:

Interest income
   $ 205,278    $ —      $ 205,278
Interest expense
   23,637    —      23,637






Net interest income
   181,641    —      181,641
Provision for credit losses
   6,350    —      6,350






Net interest income after provision for credit losses
   175,291    —      175,291
Non-interest income
   43,841    16,160    60,001
Non-interest expense
   141,029    9,274    150,303






Income before provision for income taxes
   78,103    6,886    84,989
Provision for income taxes
   19,818    2,754    22,572






Net income
   $ 58,285    $ 4,132    $ 62,417

Totalnon-fiduciary assets of the trust and investment services segment were ~~$1.7~~$3.4 million (including $1.0 million of trust customer intangibles) and ~~$3.1~~$3.7 million (including $1.3 million of trust customer intangibles) at ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively. All other assets, including goodwill and the remainder of other intangible assets, were allocated to the ~~community banking~~Community Banking segment.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis (“MD&A”) represents an overview of ~~WesBanco’s~~the results of operations and financial condition as of ~~September 30, 2017, as compared to December 31, 2016, and WesBanco’s results of operations~~Wesbanco for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017 and 2016.~~2023. This discussion and analysis should be read in conjunction with the Consolidated Financial Statements and Notes ~~in this report and WesBanco’s Form10-K~~ ~~for the fiscal year ended December 31, 2016.~~thereto.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this report relating to ~~WesBanco’s~~Wesbanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with ~~WesBanco’s~~Wesbanco’s Form10-K for the year ended December 31, ~~2016~~2022 and documents subsequently filed by ~~WesBanco~~Wesbanco with the Securities and Exchange Commission (“SEC”), including ~~WesBanco’s~~Wesbanco's Form10-Q for the ~~quarters ended~~quarter ending March 31, ~~and June 30, 2017,~~2023, which are available at the SEC’s website, www.sec.gov or at ~~WesBanco’s~~Wesbanco’s website, www.wesbanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in ~~WesBanco’s~~Wesbanco’s most recent Annual Report on Form10-K filed with the SEC under “Risk Factors” in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to ~~WesBanco~~Wesbanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the ~~FDIC,~~Federal Deposit Insurance Corporation, the SEC, ~~FINRA,~~the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, the Consumer Financial Protection Bureau and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; ~~internet hacking;~~cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting ~~WesBanco’s~~Wesbanco’s operational and financial performance. ~~WesBanco~~Wesbanco does not assume any duty to update forward-looking statements.

OVERVIEW

~~WesBanco~~Wesbanco is a multi-state bank holding company operating through ~~172~~194 branches and ~~161~~183 ATM machines in West Virginia, Ohio, western Pennsylvania, Kentucky, ~~and~~ southern Indiana and Maryland, offering retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. ~~WesBanco’s~~Wesbanco’s businesses are significantly impacted by economic factors such as market interest rates, federal monetary and regulatory policies, local and regional economic conditions and the competitive environment’s effect upon ~~WesBanco’s~~Wesbanco’s business volumes. ~~WesBanco’s~~Wesbanco’s deposit levels are affected by numerous factors including personal savings rates, personal income, and competitive rates on alternative investments, as well as competition from other financial institutions within the markets we serve and liquidity needs of ~~WesBanco.~~Wesbanco. Loan levels are also subject to various factors including construction demand, business financing needs, consumer spending and interest rates, as well as loan terms offered by competing lenders.

On September 9, 2016, WesBanco completed the acquisition of Your Community Bank (“YCB”), a bank holding company headquartered in New Albany, Indiana with approximately $1.5 billion in assets, excluding goodwill, with $1.2 billion in total deposits and $1.0 billion in total loans, and 34 branches in Kentucky and southern Indiana. WesBanco now has approximately $9.9 billion in total assets, $7.1 billion in total deposits, and $6.4 billion in total loans, operating in five contiguous states. YCB’s results were included in WesBanco’s results from the date of merger consummation.

APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES

~~WesBanco’s~~Wesbanco’s critical accounting policies involving the significant judgments and assumptions used in the preparation of the Consolidated Financial Statements as of ~~September~~June 30, ~~2017~~2023 have remained unchanged from the disclosures presented in ~~WesBanco’s~~Wesbanco’s Annual Report on Form10-K for the year ended December 31, ~~2016~~2022 within the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

RESULTS OF OPERATIONS

EARNINGS SUMMARY

Net income available to common shareholders for the ~~three months ended September 30, 2017 increased to $26.4~~second quarter of 2023 was $42.3 million, ~~while~~with diluted earnings per share ~~increased to $0.60,~~of $0.71, compared to ~~$17.4~~$40.2 million ~~and $0.44~~or $0.67 per diluted share, respectively, for the ~~third~~second quarter of ~~2016.~~2022. For the ~~nine month period~~six months ended ~~September~~June 30, ~~2017,~~2023, net income ~~increased to $78.6~~was $82.2 million or ~~$1.78~~$1.38 per diluted share, compared to ~~$62.4~~$81.8 million or ~~$1.61~~$1.34 per diluted share, for the ~~first nine months of 2016. Excludingafter-tax~~ ~~merger-related expenses(non-GAAP~~ ~~measure),~~2022 period. As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the ~~nine~~six months ended ~~September~~June 30, ~~2017, increased 13.9% to $78.9~~2023, was $84.7 million or ~~$1.79~~$1.43 per diluted share, as compared to ~~$69.3~~$83.1 million or ~~$1.79~~$1.36 per diluted share, ~~for 2016. Financial results for YCB were included~~respectively, in ~~WesBanco’s results after September 9, 2016,~~ the ~~date~~prior year period (non-GAAP measures).


	For the Three Months Ended June 30,										For the Six Months Ended June 30,
	2023					2022					2023						2022
(unaudited, dollars in thousands, except per share amounts)	Net Income			Diluted Earnings Per Share		Net Income			Diluted Earnings Per Share		Net Income			Diluted Earnings Per Share			Net Income			Diluted Earnings Per Share
Net income available to common shareholders (Non-GAAP)(1)	$	42,377		$	0.71	$	40,258		$	0.67	$	84,677		$	1.43		$	83,107		$	1.36
Less: After-tax restructuring and merger-related expenses		(28	)		—		(41	)		—		(2,519	)		(0.05	)		(1,300	)		(0.02	)
Net income available to common shareholders (GAAP)	$	42,349		$	0.71	$	40,217		$	0.67	$	82,158		$	1.38		$	81,807		$	1.34

(1)

Non-GAAP net income excludes after-tax restructuring and merger-related expenses. The above non-GAAP financial measures used by Wesbanco provide information useful to investors in understanding Wesbanco’s operating performance and trends, and facilitate comparisons with the performance of ~~the consummation of the merger.~~

Wesbanco’s peers.

   For the Three Months Ended September 30, For the Nine Months Ended September 30,
   2017    2016 2017 2016
(unaudited, dollars in thousands,
except per share amounts)
   Net
Income    Diluted
Earnings
Per Share    Net
Income Diluted
Earnings
Per Share Net
Income Diluted
Earnings
Per Share Net
Income Diluted
Earnings
Per Share
Net income(Non-GAAP)⁽¹⁾
   $ 26,356    $ 0.60    $ 23,859 $ 0.60 $ 78,903 $ 1.79 $ 69,292 $ 1.79
Less: After tax merger-related expenses
   —      —      (6,424 ) (0.16 ) (319 ) (0.01 ) (6,875 ) (0.18 )






Net income (GAAP)
   $ 26,356    $ 0.60    $ 17,435 $ 0.44 $ 78,584 $ 1.78 $ 62,417 $ 1.61

⁽¹⁾	~~Non-GAAP~~ ~~net income excludesafter-tax~~ ~~merger-related expenses. The abovenon-GAAP~~ financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers.

Net interest income increased ~~$12.2~~$9.3 million or ~~19.7% during~~8.3% in the ~~third~~second quarter of ~~2017~~2023 compared to the same quarter of ~~2016~~2022, due to ~~a 17.7%~~the 500 basis point increase in ~~average loan balances~~the federal funds rate since March 2022. Higher yields in all earning asset categories, due to the repricing of existing loans and higher investment rates offered in the current market environment, resulted in a 1615 basis point increase in the net interest ~~margin. For~~margin in the ~~nine months ended September 30, 2017, net interest income~~second quarter of 2023 as compared to the second quarter of 2022. Over the same time period, the yield on earning assets increased ~~$35.5 million or 19.5%, as average loan balances increased 21.3% and the net interest margin increased 15~~by a total of 139 basis points to 3.45%. Reflecting the benefit from the increases in the Federal Reserve Board’s target federal funds rate over the past year and the higher margin on the acquired YCB net assets, the net interest margin increased from 3.32% to 3.48% during the third quarter of 2017. Yields increased in most earning asset categories, which more than offset a 14 basis point increase inwhile the cost of interest bearing liabilities ~~as compared to the third quarter of 2016. The increase in the cost of interest bearing liabilities is primarily~~increased 189 basis points due to higher ~~rates for interest bearing demand deposits, which includes public funds,~~funding costs from increasing deposit costs and ~~certain short term and Federal Home Loan Bank~~higher cost wholesale borrowings. Average ~~interest bearing deposits during the third quarter of 2017 increased 9.4%, compared to the prior year, as all interest bearing deposit~~loan balances increased ~~other than CDs. In addition, the third quarter net interest margin included approximately 12 basis points of accretion~~by 10.8% from ~~prior acquisitions compared to 6 basis points in the third quarter of 2016, and 8 basis points in~~ the second quarter of ~~2017.~~

~~The provision for credit losses increased slightly from $2.2 million in~~2022, mainly attributable to higher new commercial loan demand, while average securities decreased by 7.9% over the ~~third quarter of 2016~~same time period as investment maturities were used to ~~$2.5 million in~~fund the ~~third quarter of 2017 due primarily to~~ loan growth. ~~The allowance for loan losses represented 0.71%~~Average deposits decreased 6.1% over the same time period as a result of ~~total portfolio loans at September 30, 2017,~~interest rate and inflationary pressures and rising costs across the economy. Accretion from prior acquisitions benefited the second quarter 2023 net interest margin by three basis points, as compared to 0.69% in the year ago period. Included in the ratio are acquired YCB and ESB loans (recorded at fair value at the date of acquisition of $1.7 billion) and the related allowance on YCB and ESB acquired loans of $3.1 million at September 30, 2017. Excluding these acquired loans and the related allowance required since the acquisition results in a more comparable coverage ratio to prior periods.

~~For the third quarter of 2017,non-interest~~ income of $20.9 million was down slightly from the third quarter of 2016. Reflecting a larger average customer deposit base year-over-year from the addition of YCB, electronic banking fees increased $0.9 million or 23.8% and service charges on deposits increased $0.6 million, or 12.4%. WesBanco continued to sell a higher percentage of residential mortgage originations in the secondary market, which increased net gains on sales of mortgage loans by $0.3 million or 35.5% year-over-year to $1.1 million. During the quarter, WesBanco realized a net loss of $0.3 million on other real estate owned and other assets. Other income decreased $1.2 million due to a decrease in commercial customer loan swap income, primarily related to a larger commercial relationshipsix basis points in the prior year period. For the ~~nine month period~~six months ended ~~September~~June 30, ~~2017,non-interest~~2023, net interest income increased ~~$5.9~~$26.0 million or ~~9.8% reflecting similar trends~~11.8% from the first six months of 2022 for the same reasons as mentioned for the three months ended.

Loan growth and adjustments in regional macroeconomic factors and loan concentrations resulted in a provision for credit losses of $3.0 million in the ~~third~~second quarter of ~~2017 noted above. In addition,year-to-date~~ ~~trust~~2023, as compared to a negative provision of $0.8 million in the second quarter of 2022. Annualized net loan charge-offs, as a percentage of average portfolio loans, were 0.02% and 0.00% for the second quarter of 2023 and 2022, respectively.

For the second quarter of 2023, non-interest income increased $4.9 million or 18.0% compared to the second quarter of 2022, driven primarily by higher commercial swap fees, higher bank-owned life insurance income, and higher net gains on other assets and net securities gains, both of which reported losses in the prior year period. New commercial swap fees, which are recorded in other income, increased $1.6 million from the prior year period to $2.4 million, while associated fair market value adjustments totaled $0.2 million during the second quarter, as compared to $1.1 million last year. Net gains on other assets of $0.9 million ~~or 5.6% and trust assets~~ increased ~~5.8% during the last twelve months, reflecting improvements in equity markets during the last year and organic growth. Net securities gains decreased $1.8~~$2.2 million year-over-year primarily due to ~~higher gains~~a $1.1 million refund recognized during the quarter on ~~sale~~an asset previously written-off, as well as a net loss on other assets of ~~securities during 2016.~~

~~Excluding merger-related expenses in both years,non-interest~~ ~~expense of $55.8~~$1.3 million in the ~~third~~prior year period from the change in the fair value of the underlying equity investment at Wesbanco Community Development Corporation ("Wesbanco CDC"), which was subsequently sold. Net securities gains of $0.2 million increased $1.4 million year-over-year due to market fluctuations from equity securities in the deferred compensation plan. Bank-owned life insurance increased by $0.8 million or 33.8% in the second quarter of ~~2017~~2023 as compared to the second quarter of 2022 due to an increase in death benefits received.

Non-interest expense, excluding restructuring and merger-related expenses, increased ~~$8.0~~in the second quarter of 2023 by $9.4 million or ~~16.8%,~~10.8% to $96.4 million, compared to the second quarter of 2022, reflecting increased salaries and wages, employee benefits, FDIC insurance and equipment and software expense. Salaries and wages increased $3.3 million or 7.9% from the second quarter of 2022 to the second quarter of 2023 due to higher staffing levels, mostly revenue-producing positions, and normal merit increases. Employee benefits expense increased $2.8 million from last year's second quarter due to higher staffing levels, higher health insurance contributions and a $1.2 million credit in the prior year period related to the deferred compensation plan. Equipment and software expense increased $1.1 million in the second quarter of 2023 compared to the prior year ~~period, principally~~second quarter due to the ~~YCB acquisition. Salaries~~planned upgrade to one-third of our ATM fleet with the latest technology and ~~wages~~general inflationary cost increases for existing service agreements. FDIC insurance expense increased ~~$3.7~~by $0.9 million ~~or 17.6%~~in the second quarter of 2023 from the second quarter of 2022 due to ~~higher average staff levels from~~ the ~~YCB acquisition, and~~increase in the ~~impact~~minimum rate for all banks in 2023.

For the first half of 2023, the ~~annual merit adjustments~~effective tax rate was 17.9% as compared to compensation. Employee benefits expense increased $1.5 million or 23.2% primarily from higher health insurance costs and payroll taxes associated with the additional employees, which more than offset lower pension expense. Increases in net occupancy and equipment were also primarily related to the additional branches from the YCB acquisition.~~Non-interest~~ ~~expense~~18.8% for the ~~first nine~~six months of 2017, excluding merger-related expenses in both years, increased $25.8 million or 18.5% reflecting similar trends as in the third quarter as noted above. Reflecting our efforts to control discretionary costs as we continue to prepare for the $10 billion asset threshold, we delivered positive operating leverage for both the threeended June 30, 2022, and ~~nine month periods ending September 30, 2017.~~

~~The provision for income tax increased $8.2 million or 36.5% during the first nine months of 2017, compared to the same period in 2016, due to a 28.7% increase inpre-tax~~ income and the adoption earlier this year of a new accounting standard related to low income housing tax credit investment amortization. This new standard moved $1.2 million from other operating expense to the provision for income ~~taxes.~~taxes decreased by $1.1 million over the same time period. Both of these decreases are due to the decrease in pre-tax income and the increase in interest income on tax-exempt loans.

NET INTEREST INCOME

TABLE 1. NET INTEREST INCOME


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,						For the Three Months Ended June 30,						For the Six Months Ended June 30,
*(unaudited, dollars in thousands)*	2017			2016			2017			2016			2023			2022			2023			2022
Net interest income	$	74,254		$	62,026		$	217,112		$	181,641		$	121,567		$	112,228		$	245,898		$	219,938
Taxable equivalent adjustments to net interest income		2,618			2,455			7,871			7,334

Taxable equivalent adjustment to net interest income														1,255			1,251			2,529			2,405
Net interest income, fully taxable equivalent	$	76,872		$	64,481		$	224,983		$	188,975		$	122,822		$	113,479		$	248,427		$	222,343

Net interest spread,non-taxable equivalent		3.20	%		3.07	%		3.18	%		3.06	%		2.41	%		2.91	%		2.59	%		2.88	%
Benefit of netnon-interest bearing liabilities		0.16	%		0.12	%		0.15	%		0.11	%		0.74	%		0.09	%		0.65	%		0.08	%

Net interest margin		3.36	%		3.19	%		3.33	%		3.17	%		3.15	%		3.00	%		3.24	%		2.96	%
Taxable equivalent adjustment		0.12	%		0.13	%		0.12	%		0.13	%		0.03	%		0.03	%		0.03	%		0.03	%

Net interest margin, fully taxable equivalent		3.48	%		3.32	%		3.45	%		3.30	%		3.18	%		3.03	%		3.27	%		2.99	%

Net interest income, which is ~~WesBanco’s~~Wesbanco’s largest source of revenue, is the difference between interest income on earning assets, primarily loans and securities, and interest expense on liabilities, ~~(deposits~~primarily deposits and short and long-term ~~borrowings).~~borrowings. Net interest income is affected by the general level of, and changes in interest rates, the steepness and shape of the yield curve, changes in the amount and composition of interest earning assets and interest bearing liabilities, as well as the frequency of repricing of existing assets and liabilities. Net interest income increased ~~$12.2~~$9.3 million or ~~19.7%~~8.3% in the ~~third~~second quarter of ~~2017~~2023 compared to the ~~same~~second quarter of ~~2016,~~2022. This increase was due to a ~~17.7%~~15 basis point increase year over year in ~~average loan balances and a 16~~the net interest margin to 3.18% for the second quarter of 2023, resulting from the 500 basis point increase in the ~~net interest margin. For the first nine months~~federal funds rate since March of ~~2017, net interest income~~2022. Portfolio loans increased ~~$35.5 million or 19.5%~~by 9.0% from ~~the first nine months of 2016 as average loan balances increased 21.3% and the net interest margin increased 15 basis points~~June 30, 2022, due to ~~3.45%. Average loan balances increased from the third quarter of 2016, from both the YCB acquisition and organic~~strong new loan growth and ~~included 5.5% of organic commercial loan growth over the last twelve months.~~internal initiatives to improve lending efficiencies. Total ~~average deposits increased~~purchase accounting accretion continued to decrease in the ~~third~~second quarter ~~by $842.9 million or 13.5%~~of 2023 as compared to the ~~third~~second quarter of 2016, while certificates of deposit, which have the highest interest cost among deposits, decreased by $59.0 million or 4.1%. Reflecting the benefit from the increases in the Federal Reserve Board’s target federal funds rate over the past year and the higher margin on the acquired YCB net assets, the net interest margin increased to 3.48% in the third quarter of 2017 from 3.32% in the same quarter of 2016. Yields increased in most earning asset categories, more than offsetting a 14 basis point increase in the cost of interest bearing liabilities from the third quarter of 2016. The increase in the cost of interest bearing liabilities is primarily due to rate increases for larger balance customers in interest bearing demand deposits, which include public funds, and higher rates for certain short term and Federal Home Loan Bank borrowings. Approximately 122022, as approximately three basis points of accretion from prior acquisitions was included in the ~~third~~second quarter ~~of 2017~~2023 net interest margin as compared to 6six basis points in the ~~third~~2022 second quarter ~~of 2016, and 8 basis points~~net interest margin. Total average deposits, excluding CDs, decreased in the second ~~quarter.~~

quarter of 2023 by $590.8 million or 4.7% compared to the second quarter of 2022. The cost of interest bearing deposits increased by 144 basis points and the cost of total interest bearing liabilities increased by 189 basis points from the second quarter of 2022 to the second quarter of 2023. The increase in the cost is primarily due to rate increases for interest bearing deposits in response to the general increase in overall borrowing rates in the marketplace resulting from the previously mentioned federal fund rate increases in 2022 and 2023.

Interest income increased ~~$15.4~~$57.6 million or ~~22.0%~~48.6% in the ~~third~~second quarter of ~~2017 and $42.3 million or 20.6% in the first nine months of 2017~~2023 compared to the same ~~periods~~period of 2022 and $106.0 million or 46.0% in ~~2016~~the first six months of 2023 compared to the same period in 2022 due to ~~higher average loan balances and higher yields in almost every earning asset category. Earning asset yields were influenced positively in 2017 by~~ the 25500 basis point ~~target~~increase in the federal funds rate ~~increases occurring in both the first and second quarter.~~since March of 2022. Average loan balances increased ~~by $960.0 million~~$1.1 billion or 10.8% in the ~~third~~second quarter of ~~2017~~2023 compared to the ~~third~~second quarter of ~~2016, primarily due to the acquisition, and~~2022, while loan yields increased by 28142 basis points during this same ~~period. Loan yields increased~~period to ~~4.36% in the third quarter of 2017~~5.31% due to ~~higher loan yields on the acquired YCB loan portfolio and~~ the previously mentioned ~~federal funds~~rising rate ~~increases.~~environment and its effect on the repricing of portfolio loans, as well as higher offered rates on new loans. Loans provide the greatest impact on interest income and the yield on earning assets as they have the largest balance and the highest yield within major earning asset categories. In the ~~third~~second quarter of ~~2017,~~2023, average loans represented ~~72.9%~~71.1% of average earning assets, an increase from ~~70.2%~~66.1% in the ~~same~~second quarter of ~~2016. Total~~2022. Average total securities balances decreased $340.5 million or 7.9% from the second quarter of 2022, and represented 25.7% of total earning assets in the second quarter of 2023. Taxable securities yields increased by 952 basis points in the ~~third~~second quarter of ~~2017~~2023 from the ~~same period in 2016~~second quarter of 2022 due to ~~lower amortization expense from paydowns on mortgage-backed~~the increased rate environment for this type of security. Tax-exempt securities ~~increases in market~~ yields, ~~on new purchases and a higher percentage of averagetax-exempt~~ ~~securities to total securities. The average balance of tax-exempt securities,~~ which ~~provide~~are the highest ~~yield~~yields within total securities, remained relatively flat with an increase of four basis points from the second quarter of 2022 to the second quarter of 2023.

Interest expense increased ~~10.1% or $66.0~~$48.3 million ~~over the last year, and were 31.1% of total average securities~~ in the ~~third~~second quarter of 2017 compared to 29.2% in the third quarter of 2016, which helped to mitigate their 13 basis point decline as new securities yields were lower than those maturing throughout the period. While increasing 13 basis points in yield, taxable securities balances remained virtually unchanged from the third quarter of 2016. The securities portfolio is currently being managed to maintain the size of the balance sheet in order to delay the financial impact of crossing $10 billion in assets.

~~Portfolio loans increased $136.2~~2023 and $80.0 million ~~or 2.2% over the last twelve months. Loan growth was achieved through $2.1 billion in loan originations, led by an increase in business loan originations~~ in the first ~~nine months~~half of ~~2017 of 13.5% from last year. Loan growth was driven by expanded market areas and additional commercial personnel in our core markets.~~

~~Interest expense increased $3.2 million or 39.3% in the third quarter of 2017 and $6.8 million or 28.9% in the first nine months of 2017~~2023 as compared to the same periods in ~~2016,~~2022, due ~~primarily~~ to the timing of the previously mentioned federal funds rate increases inand their effect on the ~~balances~~costs of deposits and ~~rates paid on most interest bearing liability categories.~~borrowings. The cost of interest bearing liabilities increased by 14189 basis points from the second quarter of 2022 to 2.15% in the ~~third~~second quarter of ~~2017 from the same period of 2016.~~2023. Average interest bearing deposits ~~increased by $450.6~~decreased $508.0 million or ~~9.4%~~5.6% from the ~~third~~second quarter of ~~2016, also~~2022, due ~~to the YCB acquisition; however, the average balance of CDs decreased $59.0 million from the third quarter of 2016. This decrease was partially due~~specifically to a ~~$37.0 million reduction~~4.5% decrease in ~~CDARS~~^® ~~balances from $164.7 million at September 30, 2016 to $127.7 million at September 30, 2017. In addition,non-interest~~average interest bearing demand deposits, a 7.6% decrease in average money market accounts, and a 21.5% decrease in average certificates of deposit. The rate on interest bearing deposits increased 144 basis points to 1.57% from the second quarter of 2022, primarily from increases in rates on interest bearing public funds, money market funds and savings deposits, which were previously near their floors, and a mix shift from non-interest bearing demand deposits into interest bearing demand deposits and certificates of deposit. Average non-interest bearing demand deposit balances decreased from the second quarter of 2022 to the second quarter of 2023 by ~~$392.4~~$333.1 million or ~~27.5% from the third quarter of 2016~~7.1%, and ~~are now 25.7%~~were 34.0% of total average deposits at June 30, 2023, compared to ~~22.9%~~34.3% at June 30, 2022, reflecting customers' preferences in the third quarter of 2016, reflecting customers’ preferences and marketing strategies. Average other borrowings and subordinated debt balances increased by $115.7 million or 49.5% from the third quarter of 2016 primarily due to debt acquired in the YCB acquisition. The averagepreviously mentioned interest rate paid on other borrowings and subordinated debt increased by 44 and 99 basis points, respectively, from the third quarter of 2016 due to the higher rate borrowings assumed in the YCB acquisition, and increases in LIBOR, the index upon which most of the subordinated debt is priced at, as most are currently variable rate.environment. The average balance of FHLB borrowings increased ~~only slightly~~$1.2 billion from the ~~third~~second quarter of ~~2016, but the average rate paid increased by 22 basis points~~2022 to 2023, due to increased loan funding demand and for liquidity purposes. Average repurchase agreements decreased $40.9 million or 28.0% from the ~~replacement~~second quarter of ~~maturing shorter-term borrowings with those of a medium-term length throughout 2017.~~

2022 to 2023, while average subordinated and junior subordinated debt balances remained flat.

TABLE 2. AVERAGE BALANCE SHEETS AND NET INTEREST MARGIN ANALYSIS


																					For The Three Months Ended June 30,										For the Six Months Ended June 30,
	For the Three Months Ended September 30,										For the Nine Months Ended September 30,										2023					2022					2023					2022
	2017					2016					2017					2016					Average		Average			Average		Average			Average		Average			Average		Average
*(unaudited, dollars in thousands)*	Average Balance		Average Rate			Average Balance		Average Rate			Average Balance		Average Rate			Average Balance		Average Rate			Balance		Rate			Balance		Rate			Balance		Rate			Balance		Rate
ASSETS
Due from banks – interest bearing	$	9,841		1.26	%	$	17,433		0.80	%	$	12,199		0.80	%	$	31,750		0.52	%
Due from banks - interest bearing																					$	438,604		5.71	%	$	744,261		0.74	%	$	359,466		5.16	%	$	951,588		0.39	%
Loans, net of unearned income⁽¹⁾		6,396,897		4.36	%		5,436,876		4.08	%		6,347,626		4.27	%		5,231,118		4.11	%		11,009,093		5.31	%		9,932,744		3.89	%		10,880,328		5.17	%		9,823,024		3.89	%
Securities:⁽²⁾
Taxable		1,595,263		2.43	%		1,590,233		2.30	%		1,582,875		2.42	%		1,698,558		2.29	%		3,198,838		2.32	%		3,532,624		1.80	%		3,250,174		2.33	%		3,433,551		1.76	%
Tax-exempt⁽³⁾		721,343		4.15	%		655,356		4.28	%		722,834		4.15	%		645,522		4.33	%		786,128		3.05	%		792,878		3.01	%		793,425		3.06	%		761,304		3.03	%

Total securities		2,316,606		2.97	%		2,245,589		2.88	%		2,305,709		2.96	%		2,344,080		2.85	%		3,984,966		2.46	%		4,325,502		2.02	%		4,043,599		2.47	%		4,194,855		1.99	%
Other earning assets		48,961		4.44	%		45,258		4.76	%		47,511		4.49	%		45,460		4.54	%		61,613		5.64	%		13,296		3.82	%		53,789		4.44	%		14,365		3.81	%

Total earning assets⁽³⁾		8,772,305		3.99	%		7,745,156		3.73	%		8,713,045		3.92	%		7,652,408		3.71	%		15,494,276		4.59	%		15,015,803		3.20	%		15,337,182		4.46	%		14,983,832		3.14	%

Other assets		1,125,182					989,068					1,123,193					951,530					1,800,070					1,955,649					1,796,162					1,998,126

Total Assets	$	9,897,487				$	8,734,224				$	9,836,238				$	8,603,938				$	17,294,346				$	16,971,452				$	17,133,344				$	16,981,958

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing demand deposits	$	1,635,956		0.44	%	$	1,328,403		0.21	%	$	1,602,546		0.37	%	$	1,250,157		0.20	%	$	3,228,799		2.14	%	$	3,380,684		0.14	%	$	3,129,921		1.82	%	$	3,392,029		0.12	%
Money market accounts		994,772		0.30	%		927,839		0.19	%		1,015,852		0.26	%		935,339		0.19	%		1,635,939		1.77	%		1,770,342		0.09	%		1,634,347		1.42	%		1,788,430		0.08	%
Savings deposits		1,257,785		0.06	%		1,122,715		0.06	%		1,246,252		0.06	%		1,100,094		0.06	%		2,729,210		0.86	%		2,700,642		0.05	%		2,751,850		0.72	%		2,664,005		0.05	%
Certificates of deposit		1,367,581		0.76	%		1,426,559		0.72	%		1,408,231		0.71	%		1,500,591		0.70	%		912,144		1.28	%		1,162,392		0.39	%		887,560		0.93	%		1,208,243		0.40	%

Total interest bearing deposits		5,256,094		0.40	%		4,805,516		0.32	%		5,272,881		0.37	%		4,786,181		0.32	%		8,506,092		1.57	%		9,014,060		0.13	%		8,403,678		1.29	%		9,052,707		0.13	%
Federal Home Loan Bank borrowings		1,005,106		1.43	%		989,585		1.21	%		967,356		1.33	%		1,019,696		1.19	%		1,288,242		5.20	%		123,474		1.34	%		1,130,000		5.00	%		151,593		1.31	%
Other borrowings		185,051		0.85	%		114,390		0.41	%		178,613		0.71	%		100,054		0.40	%
Repurchase agreements																						105,266		1.87	%		146,119		0.13	%		118,155		1.55	%		151,115		0.13	%
Subordinated debt and junior subordinated debt		164,236		4.47	%		119,246		3.48	%		164,112		4.44	%		110,582		3.27	%		281,715		5.83	%		280,962		3.97	%		281,600		5.76	%		214,704		3.71	%

Total interest bearing liabilities⁽¹⁾		6,610,487		0.67	%		6,028,737		0.53	%		6,582,962		0.62	%		6,016,513		0.52	%
Total interest bearing liabilities (4)																						10,181,315		2.15	%		9,564,615		0.26	%		9,933,433		1.84	%		9,570,119		0.23	%
Non-interest bearing demand deposits		1,817,781					1,425,416					1,801,945					1,356,336					4,379,345					4,712,466					4,479,200					4,644,982
Other liabilities		75,254					65,258					74,920					60,290					240,590					184,932					245,033					184,600
Shareholders’ equity		1,393,965					1,214,813					1,376,411					1,170,799					2,493,096					2,509,439					2,475,678					2,582,257

Total Liabilities and Shareholders’ Equity	$	9,897,487				$	8,734,224				$	9,836,238				$	8,603,938				$	17,294,346				$	16,971,452				$	17,133,344				$	16,981,958

Taxable equivalent net interest spread				3.32	%				3.20	%				3.30	%				3.19	%				2.44	%				2.94	%				2.62	%				2.91	%
Taxable equivalent net interest margin				3.48	%				3.32	%				3.45	%				3.30	%				3.18	%				3.03	%				3.27	%				2.99	%

~~(1)~~

~~Gross of allowance for loan losses and net of unearned income. Includesnon-accrual~~ and loans held for sale. Loan fees included in interest income on loans totaled $(0.5) million and $0.8 million for the three months ended September 30, 2017 and 2016, respectively. Loan fees included in interest income on loans totaled $1.0 million and $2.3 million for the nine months ended September 30, 2017 and 2016, respectively. Additionally, loan accretion included in net interest income on loans acquired from prior acquisitions was $2.4 million and $0.8 million for the three months ended September 30, 2017 and 2016, respectively, and $4.9 million and $2.3 million for the nine months ended September 30, 2017 and 2016, respectively. Accretion on interest bearing liabilities from prior acquisitions was $0.3 million for both the three months ended September 30, 2017 and 2016, and $1.1 million and $1.2 million for the nine months ended September 30, 2017 and 2016, respectively.

~~(2)~~

~~Average yields onavailable-for-sale~~ ~~securities are calculated based on amortized cost.~~

~~(3)~~

~~Taxable equivalent basis is calculated ontax-exempt~~ ~~securities using a tax rate of 35% for each year presented.~~

(1)

Gross of allowance for credit losses and net of unearned income. Includes non-accrual and loans held for sale. Loan fees included in interest income on loans were $0.7 million and $2.5 million for the three months ended June 30, 2023 and 2022, respectively, and were $1.1 million and $6.6 million for the six months ended June 30, 2023 and 2022, respectively. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.2 million and $1.9 million for the three months ended June 30, 2023 and 2022, respectively, and $2.5 million and $4.5 million for the six months ended June 30, 2023 and 2022, respectively.

(2)

Average yields on available-for-sale debt securities are calculated based on amortized cost.

(3)

Taxable equivalent basis is calculated on tax-exempt securities using a federal statutory rate of 21% for each period presented.

(4)

Accretion on interest bearing liabilities acquired from prior acquisitions was $0.1 million and $0.3 million for the three months ended June 30, 2023 and 2022, respectively, and $0.3 million and $0.7 million for the six months ended June 30, 2023 and 2022, respectively.

TABLE 3. RATE/VOLUME ANALYSIS OF CHANGES IN INTEREST INCOME AND INTEREST EXPENSE


																			For the Three Months Ended June 30, 2023							For the Six Months Ended June 30, 2023
	Three Months Ended September 30, 2017 Compared to September 30, 2016									Nine Months Ended September 30, 2017 Compared to September 30, 2016									Compared to June 30, 2022							Compared to June 30, 2022
*(unaudited, in thousands)*	Volume			Rate			Net Increase (Decrease)			Volume			Rate			Net Increase (Decrease)			Volume			Rate		Net Increase (Decrease)		Volume			Rate		Net Increase (Decrease)
Increase (decrease) in interest income:
Due from banks—interest bearing	$	(17	)	$	19		$	2		$	(95	)	$	50		$	(45	)
Due from banks - interest bearing																			$	(785	)	$	5,648	$	4,863	$	(1,814	)	$	9,178	$	7,364
Loans, net of unearned income		10,480			4,040			14,520			35,305			6,437			41,742			11,320			38,009		49,329		22,056			67,559		89,615
Taxable securities		29			545			574			(2,045	)		1,598			(447	)		(1,602	)		4,260		2,658		(1,672	)		9,304		7,632
Tax-exempt securities⁽¹⁾		690			(225	)		465			2,432			(898	)		1,534			(51	)		72		21		487			101		588
Other earning assets		38			(40	)		(2	)		77			(29	)		48			654			87		741		862			51		913

Total interest income change⁽¹⁾		11,220			4,339			15,559			35,674			7,158			42,832			9,536			48,076		57,612		19,919			86,193		106,112

Increase (decrease) in interest expense:
Interest bearing demand deposits		192			931			1,123			629			1,943			2,572			(54	)		16,104		16,050		(164	)		26,508		26,344
Money market accounts		34			273			307			124			496			620			(31	)		6,868		6,837		(66	)		10,834		10,768
Savings deposits		21			(5	)		16			65			(12	)		53			4			5,526		5,530		20			9,245		9,265
Certificates of deposit		(106	)		124			18			(495	)		172			(323	)		(288	)		2,078		1,790		(775	)		2,495		1,720
Federal Home Loan Bank borrowings		49			574			623			(486	)		990			504			12,471			3,831		16,302		18,826			8,201		27,027
Other borrowings		102			174			276			327			328			655
Repurchase agreements																				(17	)		461		444		(25	)		838		813
Subordinated debt and junior subordinated debt		460			346			806			1,576			1,167			2,743			7			1,309		1,316		1,475			2,616		4,091

Total interest expense change		752			2,417			3,169			1,740			5,084			6,824			12,092			36,177		48,269		19,291			60,737		80,028

Net interest income increase (decrease)⁽¹⁾	$	10,468		$	1,922		$	12,390		$	33,934		$	2,074		$	36,008

Net interest income change (1)																			$	(2,556	)	$	11,899	$	9,343	$	628		$	25,456	$	26,084

~~(1)~~

~~Taxable equivalent basis is calculated ontax-exempt~~ ~~securities using a tax rate of 35% for each year presented.~~

(1)

Taxable equivalent basis is calculated on tax-exempt securities using a federal statutory tax rate of 21%.

PROVISION FOR CREDIT LOSSES – LOANS AND LOAN COMMITMENTS

The provision for credit losses – loans is the amount to be added to the allowance for credit losses – loans after net ~~charge-offs~~(charge-offs) recoveries have been ~~deducted~~(deducted) added to bring the allowance to a level considered appropriate to absorb ~~probable~~lifetime expected losses ~~in the loan portfolio.~~for all portfolio loans. The provision for credit losses ~~also includes~~– loan commitments is the amount to be added to the ~~reserve~~allowance for credit losses for loan commitments to bring that ~~reserve~~allowance to a level considered appropriate to absorb ~~probable~~lifetime expected losses on unfunded loan commitments. The provision for credit losses - loans and loan commitments increased to ~~$2.5~~$3.0 million in the ~~third~~second quarter of ~~2017~~2023 compared to ~~$2.2~~a negative provision of $0.8 million in the ~~third~~second quarter of ~~2016, due primarily to~~2022. While the provision increased year-over-year, the $3.0 million provision in the second quarter of 2023 was a result of continued loan ~~growth. The continued strength~~growth and adjustments in ~~various credit quality ratios is reflective~~regional macroeconomic factors and loan concentrations. Non-performing loans were 0.28% of total portfolio loans as of June 30, 2023, decreasing from 0.35% of total portfolio loans at the end of the ~~Company’s strong legacy~~second quarter of ~~credit and risk management processes. Compared to the prior year quarter,non-performing~~ ~~assets as a percentage of total assets improved to 0.48% from 0.50%.~~2022. Criticized and classified loans were 1.24% of total loans, improving from 1.42% at September 30, 2016. Net charge-offs as a percentage of average portfolio loans were 0.12% in the third quarter of 2017 compared to 0.20% in the third quarter of 2016.~~Non-performing~~ ~~loans as a percentage~~1.68% of total portfolio loans as of June 30, 2023, decreasing from 3.14% as of June 30, 2022, primarily due to risk rating improvements. Past due loans at June 30, 2023 were 0.21% of total portfolio loans, compared to 0.40% at June 30, 2022. Annualized net loan charge-offs increased ~~from 0.63% last year~~ to ~~0.66% at September~~0.05% for the six months ended June 30, ~~2017. (Please~~2023 compared to 0.00% for the six months ended June 30, 2022. Please see the Allowance for Credit Losses – Loans and Loan Commitments section of this MD&A for additional ~~discussion).~~

discussion.

~~NON-INTEREST~~ ~~INCOME~~

NON-INTEREST INCOME

TABLE 4.NON-INTEREST INCOME


	For the Three Months Ended September 30,											For the Nine Months Ended September 30,										For the Three Months Ended June 30,											For the Six Months Ended June 30,
*(unaudited, dollars in thousands)*	2017			2016		$ Change			% Change			2017		2016		$ Change			% Change			2023		2022			$ Change			% Change			2023		2022			$ Change			% Change
Trust fees	$	5,358		$	5,413	$	(55	)		(1.0	%)	$	17,073	$	16,160	$	913			5.6	%	$	6,918	$	6,527		$	391			6.0		$	14,412	$	14,362		$	50			0.3
Service charges on deposits		5,320			4,733		587			12.4	%		15,254		12,861		2,393			18.6	%		6,232		6,487			(255	)		(3.9	)		12,401		12,577			(176	)		(1.4	)
Electronic banking fees		4,883			3,945		938			23.8	%		14,395		11,290		3,105			27.5	%		5,010		5,154			(144	)		(2.8	)		9,615		10,499			(884	)		(8.4	)
Net securities brokerage revenue		1,721			1,473		248			16.8	%		5,164		5,119		45			0.9	%		2,523		2,258			265			11.7			5,098		4,478			620			13.8
Bank-owned life insurance		1,164			995		169			17.0	%		3,671		2,910		761			26.2	%		3,189		2,384			805			33.8			5,149		6,264			(1,115	)		(17.8	)
Net gains on sales of mortgage loans		1,103			814		289			35.5	%		3,511		2,045		1,466			71.7	%
Net securities gains		6			598		(592	)		(99.0	%)		511		2,293		(1,782	)		(77.7	%)
Net (loss)/gain on other real estate owned and other assets		(298	)		184		(482	)		(262.0	%)		9		380		(371	)		(97.6	%)
Net securities gains (losses)																							205		(1,183	)		1,388			117.3			350		(1,832	)		2,182			119.1
Mortgage banking income																							601		1,328			(727	)		(54.7	)		1,027		3,251			(2,224	)		(68.4	)
Net insurance services revenue		661			636		25			3.9	%		2,313		2,326		(13	)		(0.6	%)		966		925			41			4.4			1,757		1,951			(194	)		(9.9	)
Swap fee and valuation income		60			1,239		(1,179	)		(95.2	%)		882		2,168		(1,286	)		(59.3	%)
Payment processing fees																							951		877			74			8.4			1,822		1,618			204			12.6
Net gain (loss) on other real estate owned and other assets																							871		(1,302	)		2,173			166.9			1,104		(2,108	)		3,212			152.4
Net swap fee and valuation income																							2,612		2,007			605			30.1			3,411		3,624			(213	)		(5.9	)
Other		921			987		(66	)		(6.7	%)		3,123		2,449		674			27.5	%		1,763		1,521			242			15.9			3,347		2,681			666			24.8

Totalnon-interest income	$	20,899		$	21,017	$	(118	)		(0.6	%)	$	65,906	$	60,001	$	5,905			9.8	%	$	31,841	$	26,983		$	4,858			18.0		$	59,493	$	57,365		$	2,128			3.7

Non-interest income is a significant source of revenue and an important part of ~~WesBanco’s~~Wesbanco’s results of operations, ~~was 22% and 23%~~as it represents 20.8% of ~~net revenues~~total revenue for the three ~~and nine~~ months ended ~~September~~June 30, ~~2017, respectively. WesBanco~~2023. Wesbanco offers its customers a wide range of retail, commercial, investment and electronic banking services, which are viewed as a vital component of ~~WesBanco’s~~Wesbanco’s ability to attract and maintain customers, as well as providing additional fee income beyond normal spread-related income to ~~WesBanco.~~Wesbanco. For the ~~third~~second quarter of ~~2017,~~2023, non-interest income ~~was down slightly by $0.1~~increased $4.9 million or ~~0.6%~~18.0% compared to the ~~third~~second quarter of ~~2016. The decrease is~~2022, primarily due to a ~~combination of~~$1.4 million increase in net securities gains, a ~~$1.2~~$2.2 million ~~decrease~~increase in net gain on other real estate owned and other assets, a $0.8 million increase in bank-owned life insurance and a $0.6 million increase in net swap fee and valuation ~~income partially~~income. These increases were slightly offset by a ~~$0.9~~$0.7 million ~~increase~~decrease in ~~electronic~~mortgage banking income.

Trust fees increased $0.4 million or 6.0% compared to the ~~third~~second quarter of ~~2016. For the nine months ended September 30, 2017,non-interest~~ income increased $5.9 million or 9.8% primarily driven by the acquisition and a $3.1 million increase in electronic banking fees and $2.4 million increase in service charges in deposits compared to the nine months ended September 30, 2016.

~~Trust fees increased $0.9 million for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016~~2022, due to market ~~improvements, customer development initiatives, and increased trust assets.~~value increases. Total trust assets ~~have increased $0.2 billion from $3.7~~were $5.1 billion at ~~September~~June 30, ~~2016~~2023 as compared to ~~$3.9~~$4.8 billion at ~~September~~June 30, ~~2017. Trust fees decreased $0.1 million compared to the third quarter~~2022. As of ~~2016 primarily due to aone-time~~ ~~$0.2 million accrual adjustment in the third quarter of 2017. At September~~June 30, ~~2017,~~2023, trust assets include managed assets of ~~$3.3~~$4.1 billion andnon-managed (custodial) assets of ~~$0.6~~$1.0 billion. Assets managed for the WesMark Funds, a proprietary group of mutual funds that is advised by ~~WesBanco~~Wesbanco Trust and Investment Services, were ~~$948.3 million~~$0.8 billion and $0.9 billion as of ~~September~~June 30, ~~2017~~2023 and ~~$898.2 million at September~~June 30, ~~2016, which~~2022, respectively, and are included in ~~trust~~ managed assets.

~~Service charges on deposits increased $0.6 million or 12.4% compared to~~ Trust fees remained flat in the ~~third quarter~~first six months of ~~2016 due to growth in demand and saving deposits. For the nine months ended September 30, 2017, service charges on deposits increased $2.4 million or 18.6%~~2023 as compared to the ~~nine~~first six months of 2022.

Bank-owned life insurance increased $0.8 million or 33.8% compared to the second quarter of 2022 due to an increase in mortality-related benefits received in the second quarter of 2023. For the six months ended ~~September~~June 30, ~~2016. Deposits, excluding certificates of deposit, increased $206.2~~2023, bank-owned life insurance decreased by $1.1 million or ~~3.7%~~17.8% from the first six months of 2022, due to lower mortality-related benefits received in the year-to-date period, as no mortality-related benefits were received in the first quarter of 2023.

Net securities gains (losses) include both gains and losses on investment security transactions as well as market value adjustments on Wesbanco's deferred compensation plan. For the three months ended June 30, 2023, net securities gains (losses) increased $1.4 million compared to the same period of 2022, due to a $0.2 million increase in market adjustments on the deferred compensation plan in the second quarter of 2023 as compared to ~~September~~a $1.2 million decrease in market adjustments in the second quarter of 2022. These market adjustments had an offsetting effect in employee benefits expense. For the six months ended June 30, ~~2016.~~2023, net securities gains (losses) increased by $2.2 million from the first six months of 2022 for the same reasons.

~~Electronic~~Mortgage banking ~~fees, which include debit card interchange fees, continued to grow, increasing $0.9~~income decreased $0.7 million or ~~23.8%~~54.7% in the second quarter of 2023 compared to the ~~third~~second quarter of ~~2016,~~2022, due to lower margins on sales and decreased fair value adjustments on mortgage loan commitments and related derivatives. For the second quarter of 2023, total mortgage production was $207.7 million, which decreased by 36.6% from the second quarter of 2022. For the three months ended June 30, 2023, $84.1 million in mortgages were sold into the secondary market as compared to $61.1 million in the comparable 2022 period. Included in mortgage banking income above are gains of $0.1 million and $1.2 million from the fair value adjustments on mortgage loan commitments and related derivatives for the three months ended June 30, 2023 and 2022, respectively. Mortgage banking income decreased by $2.2 million or 68.4% from the first six months of 2022 to the first six months of 2023 for similar reasons as that for the three months ended.

Net gain (loss) on other real estate owned and other assets increased $2.2 million or 166.9% in the three months ended June 30, 2023 as compared to the same period in 2022, due primarily to a $1.1 million recovery of an asset previously written-off, as well as a negative market value adjustment of $1.3 million recorded in the second quarter of 2022 on an investment made by Wesbanco’s CDC in a start-up firm more than ten years ago that was acquired by a public company in 2021. This investment was sold later in 2022. Net gain (loss) on other real estate owned and other assets increased $3.2 million or 152.4% in the first six months of 2023 as compared to the same period in 2022 for similar reasons as that for the three months ended.

Net swap fee and valuation income, which includes fair value adjustments, increased $0.6 million in the second quarter of 2023 compared to the second quarter of 2022, due to a higher volume of ~~debit card transactions from WesBanco customers.~~new swaps originated. For the ~~nine~~three months ended ~~September~~June 30, ~~2017, electronic banking fees increased $3.1~~2023, new swaps executed totaled $226.8 million ~~or 27.5%~~in notional principal, resulting in $2.4 million of fee income, compared to new swaps executed of $35.8 million in notional principal resulting in $0.9 million of fee income for the three months ended June 30, 2022. Fair value adjustments on existing swaps for the three months ended June 30,

2023 were $0.2 million as compared to $1.1 million for the ~~nine~~three months ended ~~September~~June 30, ~~2016. The volume increase is due to marketing and process initiatives as well as a higher percentage of customers using these products.~~

~~Net securities gains decreased $0.6 million or 99.0% compared to the third quarter of 2016 due to select sales in the prior year.~~2022. For the nine months ended September 30, 2017, net securities gains decreased $1.8 million or 77.7% compared to the nine months ended September 30, 2016 primarily due to one agency call in 2016 resulting in a $0.9 million securities gain. Total securities decreased $19.0 million to $2.3 billion as of September 30, 2017 as compared to September 30, 2016.

Net gains on sales of mortgage loans increased $0.3 million or 35.5% compared to the third quarter of 2016 due to increased production volumes combined with higher sales percentages. For the nine months ended September 30, 2017, net gains on sales of mortgage loans increased $1.5 million or 71.7% as compared to September 30, 2016. Total mortgage production was $294.1 million in 2017, up 4.3% from 2016. Mortgages sold into the secondary market represented $154.7 million or 52.6% of overall mortgage loan production in 2017 compared to $116.0 million or 41.1% for the first ~~nine~~six months of ~~2016.~~

Swap fee and valuation income decreased $1.2 million or 95.2% compared to the third quarter of 2016 due to the prior year quarter including higher commercial customer loan swap-related income, primarily from one larger commercial loan relationship. For the nine months ended September 30, 2017,2023, net swap fee and valuation income decreased ~~$1.3~~by $0.2 million or ~~59.3% as compared to September 30, 2016.~~5.9% from the first six months of 2022. During this time period, new swap fee income increased by $3.3 million, but was offset by a $3.5 million decrease in fair value adjustments on existing swaps.

~~NON-INTEREST~~ ~~EXPENSE~~

NON-INTEREST EXPENSE

TABLE 5.NON-INTEREST EXPENSE


	For the Three Months Ended June 30,										For the Six Months Ended June 30,
(unaudited, dollars in thousands)	2023		2022		$ Change			% Change			2023		2022		$ Change			% Change
Salaries and wages	$	44,471	$	41,213	$	3,258			7.9		$	86,422	$	80,150	$	6,272			7.8
Employee benefits		11,511		8,722		2,789			32.0			23,570		17,880		5,690			31.8
Net occupancy		6,132		6,119		13			0.2			12,775		13,354		(579	)		(4.3	)
Equipment and software		8,823		7,702		1,121			14.6			17,885		15,713		2,172			13.8
Marketing		2,763		2,749		14			0.5			5,088		5,170		(82	)		(1.6	)
FDIC insurance		2,871		1,937		934			48.2			5,755		3,459		2,296			66.4
Amortization of intangible assets		2,282		2,579		(297	)		(11.5	)		4,583		5,178		(595	)		(11.5	)
Restructuring and merger-related expenses		35		52		(17	)		(32.7	)		3,188		1,646		1,542			93.7
Franchise and other miscellaneous taxes		3,015		2,951		64			2.2			5,913		5,945		(32	)		(0.5	)
Consulting, regulatory, accounting and advisory fees		3,401		3,524		(123	)		(3.5	)		6,099		7,211		(1,112	)		(15.4	)
ATM and electronic banking interchange expenses		1,772		1,532		240			15.7			3,399		2,950		449			15.2
Legal fees		706		736		(30	)		(4.1	)		1,177		1,671		(494	)		(29.6	)
Communications		1,311		1,149		162			14.1			2,741		2,215		526			23.7
Other real estate owned and foreclosure expenses		70		249		(179	)		(71.9	)		164		507		(343	)		(67.7	)
Supplies, postage and other		7,274		5,805		1,469			25.3			13,801		11,520		2,281			19.8
Total non-interest expense	$	96,437	$	87,019	$	9,418			10.8		$	192,560	$	174,569	$	17,991			10.3

   For the Three Months
Ended September 30,    For the Nine Months
Ended September 30,
(unaudited, dollars in thousands)
   2017    2016    $ Change % Change 2017    2016    $ Change % Change
Salaries and wages
   $ 24,957    $ 21,225    $ 3,732 17.6 % $ 71,575    $ 60,136    $ 11,439 19.0 %
Employee benefits
   7,728    6,275    1,453 23.2 % 23,670    20,684    2,986 14.4 %
Net occupancy
   4,132    3,647    485 13.3 % 12,969    10,459    2,510 24.0 %
Equipment
   3,905    3,557    348 9.8 % 12,043    10,387    1,656 15.9 %
Marketing
   1,599    1,295    304 23.5 % 4,482    3,876    606 15.6 %
FDIC insurance
   945    961    (16 ) (1.7 %) 2,677    3,225    (548 ) (17.0 %)
Amortization of intangible assets
   1,223    837    386 46.1 % 3,736    2,263    1,473 65.1 %
Restructuring and merger-related expenses
   —      9,883    (9,883 ) (100.0 %) 491    10,577    (10,086 ) (95.4 %)
Franchise and other miscellaneous taxes
   2,095    1,893    202 10.7 % 6,223    5,131    1,092 21.3 %
Postage and courier expenses
   935    814    121 14.9 % 2,925    2,355    570 24.2 %
Consulting, regulatory, accounting and advisory fees
   1,755    1,450    305 21.0 % 5,082    4,030    1,052 26.1 %
Other real estate owned and foreclosure expenses
   251    548    (297 ) (54.2 %) 906    1,156    (250 ) (21.6 %)
Legal fees
   675    559    116 20.8 % 2,086    1,835    251 13.7 %
Communications
   602    388    214 55.2 % 1,982    1,109    873 78.7 %
ATM and electronic banking interchange expenses
   1,202    953    249 26.1 % 3,493    3,143    350 11.1 %
Supplies
   631    601    30 5.0 % 2,360    1,965    395 20.1 %
Other
   3,119    2,715    404 14.9 % 9,323    7,972    1,351 16.9 %






��



Totalnon-interest expense
   $ 55,754    $ 57,601    $ (1,847 ) (3.2 %) $ 166,023    $ 150,303    $ 15,720 10.5 %

Non-interest expense in the ~~third~~second quarter of ~~2017 decreased $1.8~~2023 increased $9.4 million or ~~3.2%~~10.8% as compared to the same quarter in ~~2016,~~2022, principally from ~~the $9.9~~a $3.3 million ~~of restructuring and merger-related expenses incurred~~increase in ~~the third quarter of 2016 from the YCB acquisition.Non-interest~~ ~~expense for the nine months ended September 30, 2017 increased $15.7 million or 10.5% compared to the same period in 2016. For the third quarter,~~ salaries and wages, ~~increased $3.7~~a $2.8 million ~~or 17.6% due to higher average staff levels from the YCB acquisition, which also was the primary driver for the $1.5 million or 23.2%~~ increase in employee benefits, a $1.5 million increase in supplies, postage and other operating expense, a $1.1 million increase in equipment and software expense and a $0.9 million increase in FDIC insurance expense.

Salaries and wages increased $3.3 million or 7.9% in the second quarter of 2023 as compared to the ~~third~~second quarter of ~~2016. For~~2022 due to higher salary expense related to higher staffing levels in revenue-producing positions, and normal merit increases. Average full time equivalent employees increased by 1.5% from the ~~nine months ended September 30, 2017, nearly all other expenses increased with the exception~~second quarter of ~~restructuring and merger-related expenses compared~~2022 to the ~~same period in 2016.~~

second quarter of 2023 due to the planned hiring of loan officers. Salaries and wages increased ~~$3.7~~$6.3 million or ~~17.6% from the third quarter of 2016 and $11.4 million or 19.0% over~~7.8% in the first ~~nine~~six months of ~~2016 due~~2023 as compared to ~~increased compensation expense from~~ the ~~acquisition, select sales personnel additions, and staff additions in preparation~~first six months of 2022 for the ~~anticipated crossing of $10 billion in total assets, as well as increased short-term incentives and stock compensation.~~ same reasons.

Employee benefits expense increased by $2.8 million or 32.0% in the second quarter of 2023 as compared to the second quarter of 2022. This increase was primarily due to a $1.3 million increase in deferred compensation plan expense, which relates to the increase in the market value of the underlying investments, a $0.7 million increase in pension expense and a $0.7 million increase in health insurance contributions. Employee benefits expense increased $5.7 million or 31.8% in the first six months of 2023 as compared to the first six months of 2022 for the same reasons.

Equipment and software costs increased $1.1 million or 14.6% in the second quarter of 2023 as compared to the second quarter of 2022, due primarily to general inflationary cost increases for existing service agreements as well as the continuation of the planned upgrade to one-third of Wesbanco's ATM fleet with the latest technology. Similarly, equipment and software costs increased $2.2 million or 13.8% in the first six months of 2023 as compared to the first six months of 2022.

FDIC insurance expense increased $0.9 million or 48.2% in the second quarter of 2023 as compared to the second quarter of 2022 due primarily to the two basis point increase in the minimum FDIC assessment rate for all banks. Similarly, FDIC insurance expense increased $2.3 million or 66.4% in the first six months of 2023 as compared to 2022.

Supplies, postage and other operating expense increased by $1.5 million or ~~23.2%~~25.3% in the second quarter of 2023 as compared to the ~~third~~second quarter of ~~2016, and $3.0 million or 14.4% over the first nine months of 2016 primarily from the additional acquisition-related employees, which was partially offset by a decrease in pension costs.~~

~~Net occupancy costs increased $0.5 million or 13.3% from the third quarter of 2016 and $2.5 million or 24.0% over the first nine months of 2016~~2022 primarily due to costs associated with higher customer transactional volume and increased ~~building-related costs, including utilities, lease expense, depreciation, repairs~~employee travel expenses. Similarly, supplies, postage and other ~~seasonal maintenance costs, primarily due to the 34 YCB branch locations acquired and normal building maintenance and repair costs of the legacy branch network and other infrastructure needs.~~

~~Equipment costs~~expense increased ~~$0.3~~$2.3 million or ~~9.8% from the third quarter of 2016 and $1.7 million or 15.9% over~~19.8% in the first ~~nine~~six months of ~~2016 due to the acquisition and continuous improvements in technology and communication infrastructure, software costs and origination and customer support centers.~~

~~Amortization of intangible assets increased $1.5 million for the nine months ended September 30, 2017~~2023 as compared to ~~the nine months ended September 30, 2016.~~ 2022.

INCOME TAXES

The ~~YCB acquisition added approximately $12.0 million in core deposit intangibles and $0.8 million innon-compete~~ ~~agreements with former YCB executives covering a three-year term.~~

~~Merger-related expenses were $9.9~~provision for income taxes was $9.1 million for the three months ended ~~September~~June 30, ~~2016 and $10.6~~2023, which is a $1.2 million ~~for the nine months ended September 30, 2016 as~~decrease compared to the ~~current quarter of no merger related expenses and $0.5 million~~provision for the ~~nine~~three months ended ~~September~~June 30, ~~2017. The merger-related expenses were from WesBanco’s acquisition of YCB on September 9, 2016.~~

Franchise and other miscellaneous taxes increased $0.2 million compared to the third quarter of 2016 and $1.1 million for the nine months ended September 30, 2017 as compared to September 30, 2016 due to increases in Pennsylvania bank shares tax expense, Kentucky capital stock tax and real estate taxes in various jurisdictions.

Professional fees have increased $0.3 million from the third quarter of 2016 and $1.1 million for the nine months ended September 30, 2017 as compared to September 30, 2016 primarily due to certain third-party fees associated with the increased volume in loan originations, as well as consulting fees related to preparations for certain regulatory requirements, such as stress testing, for institutions that exceed $10 billion in total assets.

~~INCOME TAXES~~

2022. The provision for income taxes ~~increased $8.2~~was $19.0 million ~~or 36.5%,~~ for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023, which is a $1.1 million decrease compared ~~to the nine months ended September 30, 2016. The increase was due in part to a 28.7% increase inpre-tax~~ income for the nine months ended September 30, 2017 as compared to the same period of 2016. In addition, earlier this year the Company adopted a new accounting standard related to low income housing tax credit investment amortization, which, for the first nine months of 2017, resulted in $1.2 million that would have been accounted for in other operating expense in prior periods moving to the provision for ~~income taxes. Additionally,~~ the ~~adoption of another new accounting standard resulted~~same period in 2022. The decrease in the ~~reclassification of excess tax benefits related to stock-based compensation from additional paid in capital in shareholders’ equity to~~provision for income ~~tax expense, which reduced income tax expense by $0.3 million for the nine months ended September 30, 2017. For the quarter, the provision increased $4.7 million or 81.7% from last year~~taxes is due to ~~higherpre-tax~~ ~~income and~~a decrease in the ~~above-noted additional factors. The~~ effective tax rate ~~was 28.5% for~~from 18.8% in the ~~third quarter and 28.2% for~~first half of 2022 to 17.9% in the ~~nine months ended September 30, 2017.~~

first half of 2023. The decrease is attributable to the decrease in pre-tax income as well as an increase in interest income on tax-exempt loans.

FINANCIAL CONDITION

Total assets increased ~~1.3% during the nine months ended September 30, 2017,~~2.5%, while ~~deposits and shareholders’~~shareholders' equity increased ~~0.9%~~1.6% and ~~4.0%, respectively,~~total deposits decreased 2.1% at June 30, 2023 as compared to December 31, ~~2016.~~2022. Total securities decreased $223.6 million or 5.9% from December 31, 2022 to June 30, 2023, as investment maturities were used to fund loan growth. Total portfolio loans increased ~~$123.6~~$427.2 million or ~~2.0%.~~4.0% as new originations outpaced pay downs. Deposits ~~increased $60.1~~decreased $269.7 million, or 2.1% from~~year-end,~~ ~~due to a 5.4% increase in demand deposits~~ December 31, 2022, as decreases of 3.3% and a 3.8% increase in savings deposits, which more than offset a 0.5% decrease in money market and a 10.8% decrease in certificates of deposit. The decrease in certificates of deposit is a result of lower rate offerings for maturing deposits and customer preferences for other deposit types, or~~non-deposit~~ ~~products, coupled with a $7.5 million decrease in CDARS~~^® ~~balances and decreases in certificates of deposit balances acquired in the ESB and YCB transactions totaling $88.2 million. The increases~~3.1% in demand deposits and savings deposits, respectively, were partially offset by increases of 8.4% and 0.1% in certificate of deposits and money market deposits, respectively. The overall decrease in transaction-based accounts ~~were~~is primarily attributable to ~~marketing, incentives paid to customers, focused retail~~the impact on interest rates, inflationary pressure and ~~business strategies to obtain more account relationships, and customers’ preference for short-term maturities. Also benefiting these balances~~rising costs across the country causing a decrease in personal savings. Deposits were ~~the deposits from~~also somewhat impacted by bonus and royalty payments for Marcellus and Utica shale gas payments from energy companies in ~~WesBanco’s~~Wesbanco’s southwestern Pennsylvania, eastern Ohio, and northern West Virginia markets. Total borrowings increased ~~1.0%~~57.2% or $641.7 million during the first ~~nine~~six months of ~~2017,~~2023, which was primarily asdue to a ~~result of a $46.1~~$675.0 million increase in FHLB borrowings ~~which was~~and partially offset by a $33.8 million decrease in other short-term borrowings. ~~Total shareholders’~~Shareholders' equity increased ~~by $53.2~~$38.3 million or ~~4.0%, compared to~~1.6% from December 31, ~~2016,~~2022, to $2.5 billion at June 30, 2023. The increase resulted primarily ~~due to~~from net income during the current six-month period of $87.2 million, exceeding the declaration of common and preferred shareholder dividends totaling $41.1 million and $5.1 million, respectively, and was slightly offset by a $2.2 million other comprehensive loss for the ~~period by $44.3 million, coupled with a $6.3 million decrease in other comprehensive losses.~~

six months ended June 30, 2023.

SECURITIES

TABLE 6. COMPOSITION OF SECURITIES (1)


													June 30,			December 31,
*(unaudited, dollars in thousands)*	September 30, 2017			December 31, 2016			$ Change			% Change			2023			2022			Change ($)			Change (%)
Trading securities (at fair value)	$	7,929		$	7,071		$	858			12.1
Available-for-sale (at fair value)
Equity securities (at fair value)													$	11,948		$	11,506		$	442			3.8
Available-for-sale debt securities (at fair value)
U.S. Government sponsored entities and agencies		72,319			54,043			18,276			33.8			211,951			225,970			(14,019	)		(6.2	)
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		963,474			938,289			25,185			2.7			1,721,887			1,846,053			(124,166	)		(6.7	)
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		121,834			96,810			25,024			25.8			305,242			349,731			(44,489	)		(12.7	)
Obligations of states and political subdivisions		106,847			111,663			(4,816	)		(4.3	)		78,431			92,228			(13,797	)		(15.0	)
Corporate debt securities		35,503			35,301			202			0.6			11,711			15,158			(3,447	)		(22.7	)

Total debt securities		1,299,977			1,236,106			63,871			5.2
Equity securities		5,555			5,070			485			9.6

Totalavailable-for-sale securities	$	1,305,532		$	1,241,176		$	64,356			5.2

Held-to-maturity (at amortized cost)
Total available-for-sale debt securities													$	2,329,222		$	2,529,140		$	(199,918	)		(7.9	)
Held-to-maturity debt securities (at amortized cost)
U.S. Government sponsored entities and agencies	$	12,128		$	13,394		$	(1,266	)		(9.5	)	$	3,887		$	4,357		$	(470	)		(10.8	)
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		178,429			215,141			(36,712	)		(17.1	)		42,371			45,909			(3,538	)		(7.7	)
Obligations of states and political subdivisions		801,760			805,019			(3,259	)		(0.4	)		1,157,889			1,177,986			(20,097	)		(1.7	)
Corporate debt securities		33,371			34,413			(1,042	)		(3.0	)		20,323			20,377			(54	)		(0.3	)

Totalheld-to-maturity securities		1,025,688			1,067,967			(42,279	)		(4.0	)

Total held-to-maturity debt securities														1,224,470			1,248,629			(24,159	)		(1.9	)
Total securities	$	2,339,149		$	2,316,214		$	22,935			1.0		$	3,565,640		$	3,789,275		$	(223,635	)		(5.9	)

Available-for-sale and trading securities:
Available-for-sale and equity securities:
Weighted average yield at the respective period end⁽²⁾		2.33	%		2.22	%								2.27	%		2.23	%
As a % of total securities		56.2	%		53.9	%								65.7	%		67.0	%
Weighted average life (in years)		4.1			4.3									6.8			6.7

Held-to-maturity securities:
Weighted average yield at the respective period end⁽²⁾		3.83	%		3.76	%								2.97	%		2.96	%
As a % of total securities		43.8	%		46.1	%								34.3	%		33.0	%
Weighted average life (in years)		4.2			5.0									9.2			9.5

Total securities:
Weighted average yield at the respective period end⁽²⁾		2.99	%		2.93	%								2.49	%		2.45	%
As a % of total securities		100.0	%		100.0	%								100.0	%		100.0	%
Weighted average life (in years)		4.1			4.6									7.5			7.6

~~(1)~~

~~(2)~~

~~Weighted average yields have been calculated on a taxable-equivalent basis using the federal statutory tax rate of 35%.~~

(1)

(2)

Weighted average yields have been calculated on a taxable-equivalent basis using the federal statutory tax rate of 21%.

Total investment securities, which are a source of liquidity for ~~WesBanco~~Wesbanco as well as a contributor to interest income, ~~increased~~decreased by ~~$22.9~~$223.6 million or ~~1.0%~~5.9% from December 31, ~~2016~~2022 to ~~September~~June 30, ~~2017.~~2023. Through the first ~~nine~~six months of ~~2017,~~ the year, the available-for-sale ~~portfolio increased by $64.4 million or 5.2%, while theheld-to-maturity~~ portfolio decreased by ~~$42.3~~$199.9 million or ~~4.0%. The increase in the overall portfolio from December 31, 2016 was~~7.9%, primarily due to ~~purchases~~$148.9 million in paydowns, $28.3 million in sales, $19.0 million in maturities and calls and an increase of ~~commercial~~$3.2 million in unrealized losses. The held-to-maturity portfolio decreased by $24.2 million or 1.9% due primarily to maturities and ~~residential mortgage-backed securities, mostly in the third quarter, which were slightly offset by mortgage-backed security paydowns and sales as well as~~ calls of municipal ~~bonds. In the second quarter, $9.4 million of securities were sold, which resulted in $0.4 million in realized gains.~~securities. The weighted average yield of the portfolio increased ~~by 6~~4 basis points from 2.45% at December 31, ~~2016~~2022 to ~~September~~2.49% at June 30, ~~2017, which~~2023, primarily due to increases in the indices tied to variable rate securities.

Total gross unrealized securities losses decreased $9.1 million from $510.7 million at December 31, 2022 to $501.6 million at June 30, 2023. The decrease in unrealized losses from December 31, 2022 was due to a slight decrease in ~~part~~market rates in 2023 to date, causing market prices to increase slightly, particularly on the municipal securities segment of the portfolio. Wesbanco did not allocate any allowance for credit losses to the ~~increase~~unrealized losses on available-for-sale debt securities at June 30, 2023. Please refer to Note 4, “Securities,” of the Consolidated Financial Statements for additional information. Wesbanco does not have any investments in ~~the target federal funds rate during 2017, as well as lower amortization expense on~~private mortgage-backed securities ~~from decreases in principal paydowns. The securities portfolio continues~~or those that are collateralized by sub-prime mortgages, nor does Wesbanco have any exposure to ~~be managed to help maintain the size of the balance sheet under $10 billion in order to delay the financial impact of crossing such total asset level.~~

collateralized debt obligations or government-sponsored enterprise preferred stocks.

Net unrealized losses onavailable-for-sale securities included in accumulated other comprehensive income, net of tax, as of ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016~~2022 were ~~$5.1~~$264.2 million and ~~$9.9~~$261.8 million, respectively. ~~Since~~These net unrealized pre-tax losses represent temporary fluctuations resulting from changes in market rates in relation to fixed yields in the available-for-sale portfolio, and on an after-tax basis are accounted for as an adjustment to other comprehensive income in shareholders’ equity. Net unrealized pre-tax losses in the held-to-maturity portfolio, which are not accounted for in other comprehensive income, were $152.2 million at June 30, 2023, compared to $164.2 million at December 31, 2022. With approximately ~~44%~~34% of the investment portfolio is in theheld-to-maturity category, ~~increases~~the recent volatility in interest rates dodoes not have as much impact on other comprehensive income as if the entire portfolio were included in theavailable-for-sale category.

~~Trading~~Equity securities, of which ~~consist~~a portion consists of investments in various mutual funds held in grantor trusts formed in connection with ~~an executive officer/~~a key officer and director deferred compensation plan, are recorded at fair value. Gains and losses due to fair value fluctuations on ~~trading~~equity securities are included in~~non-interest~~ ~~income under other income, while~~ net securities gains or losses. For those equity securities relating to the key officer and director deferred compensation plan, the corresponding change in the obligation to the employee is recognized in employee benefits expense.

~~WesBanco’s~~

The corporate and municipal bonds in Wesbanco’s held-to-maturity debt portfolio ~~comprises 38.8%~~are analyzed quarterly to determine if an allowance for current expected credit losses is warranted. Wesbanco uses a database of historical financials of all corporate and municipal issuers and actual historic default and recovery rates on rated and non-rated transactions to estimate expected credit losses on an individual security basis. The expected credit losses are adjusted quarterly and are recorded in an allowance for expected credit losses on the balance sheet, which is deducted from the amortized cost basis of the ~~overall securities~~held-to-maturity portfolio as ~~of September 30, 2017 as compared to 39.6%~~a contra asset. The losses are recorded on the income statement in the provision for credit losses. Accrued interest receivable on held-to-maturity securities, which was $9.1 million and $9.5 million as of June 30, 2023 and December 31, ~~2016,~~2022, respectively, is excluded from the estimate of credit losses. Held-to-maturity investments in U.S. Government sponsored entities and ~~it carries different risks that~~agencies as well as mortgage-backed securities and collateralized mortgage obligations, which are ~~not as prevalent in other security types contained~~all either issued by a direct governmental entity or a government-sponsored entity, have no historical evidence supporting expected credit losses; therefore, Wesbanco has estimated these losses at zero, and will monitor this assumption in the ~~portfolio. The following table presents the allocation of the municipal bond portfolio based on the combined S&P and Moody’s ratings of the individual bonds (at fair value):~~future for any economic or governmental policies that could affect this assumption.

~~TABLE 7. MUNICIPAL BOND RATINGS~~

   September 30, 2017    December 31, 2016
(unaudited, dollars in thousands)
   Amount    % of Total    Amount    % of Total
Municipal bonds (at fair value) (1):

Moody’s: Aaa / S&P: AAA
   $ 93,759    10.1    $ 93,676    10.1
Moody’s: Aa1 ; Aa2 ; Aa3 / S&P: AA+ ; AA ; AA-
   689,234    74.3    700,506    75.5
Moody’s: A1 ; A2 ; A3 / S&P: A+ ; A ; A-
   136,214    14.7    121,903    13.2
Moody’s: Baa1 ; Baa2 ; Baa3 / S&P: BBB+ ; BBB ;BBB- (2)
   745    0.1    729    0.1
Not rated by either agency
   7,608    0.8    9,991    1.1








Total municipal bond portfolio
   $ 927,560    100.0    $ 926,805    100.0

~~(1)~~

~~The highest available rating was used when placing the bond into a category in the table.~~

~~(2)~~

~~As of September 30, 2017 and December 31, 2016, there are no securities in the municipal portfolio rated below investment grade.~~

~~WesBanco’s municipal bond portfolio consists primarily oftax-exempt~~ general obligation and revenue bonds from various municipalities, school districts and local revenue bond issues. Certain taxable Build America Bonds are also included in the portfolio. The following table presents additional information regarding the municipal bond type and issuer (at fair value):

~~TABLE 8. COMPOSITION OF MUNICIPAL SECURITIES~~

   September 30, 2017    December 31, 2016
(unaudited, dollars in thousands)
   Amount    % of Total    Amount    % of Total
Municipal bond type:

General Obligation
   $ 641,013    69.1    $ 638,868    68.9
Revenue
   286,547    30.9    287,937    31.1








Total municipal bond portfolio
   $ 927,560    100.0    $ 926,805    100.0








Municipal bond issuer:

State Issued
   $ 93,544    10.1    $ 92,241    10.0
Local Issued
   834,016    89.9    834,564    90.0








Total municipal bond portfolio
   $ 927,560    100.0    $ 926,805    100.0

WesBanco’s municipal bond portfolio is broadly spread across the United States. The following table presents the top five states of municipal bond concentration within those states based on total fair value at September 30, 2017:

~~TABLE 9. CONCENTRATION OF MUNICIPAL SECURITIES~~

   September 30, 2017
(unaudited, dollars in thousands)
   Fair Value    % of Total
Pennsylvania
   $ 199,881    21.5
Ohio
   105,305    11.4
Texas
   104,887    11.3
Illinois
   50,111    5.4
West Virginia
   35,097    3.8
All other states
   432,279    46.6




Total municipal bond portfolio
   $ 927,560    100.0

~~WesBanco~~Wesbanco uses prices from independent pricing services and, to a lesser extent, indicative (non-binding) quotes from independent brokers, to measure the fair value of its securities. ~~WesBanco~~Wesbanco validates prices received from pricing services or brokers using a variety of methods, including, but not limited to, comparison to secondary pricing services, corroboration of pricing by reference to other independent market data such as secondary broker quotes and relevant benchmark indices, review of pricing by personnel familiar with market liquidity and other market-related conditions, review of pricing service methodologies, review of independent auditor reports received from the pricing service regarding its internal controls, and through review of inputs and assumptions used in pricing certain securities thinly traded or with limited observable data points. The procedures in place provide management with a sufficient understanding of the valuation models, assumptions, inputs and pricing to reasonably measure the fair value of ~~WesBanco’s~~Wesbanco’s securities. For additional disclosure relating to fair value measurements, refer to Note 7, “Fair Value Measurement” in the Consolidated Financial Statements.

LOANS AND CREDIT RISK

Loans represent ~~WesBanco’s~~Wesbanco’s single largest balance sheet asset classification and the largest source of interest income. Business purpose loans consist of ~~commercial real estate (“CRE”)~~CRE loans and other ~~commercial and industrial (“~~C~~&I”)~~&I loans that are not secured by real estate. CRE loans are further segmented into land and construction loans, and loans for improved property. Consumer purpose loans consist of residential real estate loans, home equity lines of credit and other consumer loans. Loans held for sale generally consist of residential real estate loans originated for sale in the secondary market, but at times may also include other types of loans. The outstanding balance of each major category of the loan portfolio is summarized in Table 10.

The risk that borrowers will be unable or unwilling to repay their obligations and default on loans is inherent in all lending activities. Credit risk arises from many sources including general economic conditions, external events that impact businesses or industries, isolated events that impact a major employer, individual loss of employment or other personal hardships, as well as changes in interest rates or the value of collateral. Credit risk is also impacted by a concentration of exposure within a geographic market or to one or more borrowers, industries or collateral types. The primary goal in managing credit risk is to minimize the impact of default by an individual borrower or group of borrowers. Credit risk is managed through the initial underwriting process as well as through ongoing monitoring and administration of the portfolio that varies by the type of loan. The Bank’s credit policies establish standard underwriting guidelines for each type of loan and require an appropriate evaluation of the credit characteristics of each borrower. This evaluation includes the borrower’s primary source of repayment capacity; the adequacy of collateral, if any, to secure the loan; the potential value of personal guarantees as secondary sources of repayment; and other factors unique to each loan that may increase or mitigate its risk. Credit bureau scores are also considered when evaluating consumer purpose loans as well as guarantors of business purpose loans. However, the Bank does not periodically update credit bureau scores subsequent to when loans are made to determine changes in credit history.

Credit risk is mitigated for all types of loans by continuously monitoring delinquency levels and pursuing collection efforts at the earliest stage of delinquency. The Bank also monitors general economic conditions, including employment, housing activity and real estate values in its market. The Bank also periodically evaluates and changes its underwriting standards when warranted based on market conditions, the historical performance of a category of the portfolio, or other external factors. Credit risk is also regularly evaluated for the impact of adverse economic and other events that increase the risk of default and the potential loss in the event of default, to understand ~~their~~the impact on the Bank’s earnings and capital.

Commercial loan risk grades are determined based on an evaluation of the relevant characteristics of each loan, assigned at inception and adjusted thereafter at any time to reflect changes in the risk profile throughout the life of each loan. The primary factors used to determine the risk grade are the sufficiency, reliability and sustainability of the primary source of repayment and overall financial strength of the borrower. The rating system more heavily weights the debt service coverage, leverage and loan-to-value factors to derive the risk grade. Other factors that are considered at a lesser weighting include management, industry or property-type risks, payment history, collateral and personal guarantees.

TABLE 10. COMPOSITION OF LOANS (1)

   September 30, 2017    December 31, 2016
(unaudited, dollars in thousands)
   Amount    % of Loans    Amount    % of Loans
Commercial real estate:

Land and construction
   $ 606,593    9.5    $ 496,539    7.9
Improved property
   2,407,819    37.6    2,376,972    37.9








Total commercial real estate
   3,014,412    47.1    2,873,511    45.8
Commercial and industrial
   1,125,693    17.6    1,088,118    17.4
Residential real estate
   1,356,580    21.2    1,383,390    22.1
Home equity
   527,216    8.2    508,359    8.1
Consumer
   349,148    5.5    396,058    6.3








Total portfolio loans
   6,373,049    99.6    6,249,436    99.7
Loans held for sale
   26,888    0.4    17,315    0.3








Total loans
   $ 6,399,937    100.0    $ 6,266,751    100.0

~~(1)~~

~~Loans are presented gross of the allowance for loan losses and net of unearned income, credit valuation adjustments, and unamortized net deferred loan fee income and loan origination costs.~~

~~Portfolio~~

June 30, 2023

December 31, 2022

(unaudited, dollars in thousands)

Amount

% of Loans

Amount

% of Loans

Commercial real estate:

Land and construction

$
829,744

7.4

$
943,887

8.8

Improved property

5,465,723

48.9

5,117,457

47.8

Total commercial real estate

6,295,467

56.3

6,061,344

56.6

Commercial and industrial

1,558,491

14.0

1,579,395

14.7

Residential real estate

2,341,928

21.0

2,140,584

20.0

Home equity

701,824

6.3

695,065

6.5

Consumer

232,254

2.1

226,340

2.1

Total portfolio loans

11,129,964

99.7

10,702,728

99.9

Loans held for sale

28,970

0.3

8,249

0.1

Total loans

$
11,158,934

100.0

$
10,710,977

100.0

(1)

Loans are presented gross of the allowance for loan credit losses – loans ~~which include $1.0 billion from the YCB acquisition,~~and net of unearned income, credit valuation adjustments, and unamortized net deferred loan fee income and loan origination costs.

Total portfolio loans increased ~~$123.6~~$427.2 million or ~~2.0%~~4.0% from December 31, ~~2016~~2022, and ~~$136.2~~have increased $921.3 million or ~~2.2%~~9.0% over the ~~last~~past twelve months. ~~Total loan growth~~The increase over the last twelve months was driven by ~~strategic focus categories with 5.5%~~a 10.8% growth in ~~total commercial~~improved property loans due to increased originations and ~~4.3% growth~~continued low prepayment rates, as well as a 22.8% increase in ~~home~~residential real estate balances, which also stems from low prepayment rates and construction advances, despite efforts to sell more loans into the secondary market. Land and construction loans declined by 9.8% as a large number of construction projects were completed and subsequently transferred to improved property loans, which further increased those balances. Home equity loans ~~from expanded market areas~~have increased 17.4% and ~~additional~~ commercial ~~personnel in our core markets. Secondary market loan sales of residential mortgages continued to increase resulting in an increase in~~and industrial loans have increased 0.6% over the ~~gain on sale of mortgages and a reduction in residential mortgages retained in the portfolio. In addition, the~~12 month period, while consumer ~~portfolio declined due to a reduced focus and pricing adjustments for indirect installment loans.~~loans have decreased 22.7%.

Total loan commitments of ~~$1.9~~$5.1 billion, including loans approved but not closed, increased ~~$102.4~~$479.0 million or ~~5.8%~~10.4% from December 31, ~~2016~~2022 due primarily to ~~the larger overall portfolio size from the YCB acquisition as well as new loan demand, particularly in land~~increased availabilities under lines of credit and ~~construction development.~~loans approved but not closed. The average line utilization percentage for the commercial portfolio was ~~47.4% at September~~32.0% for the three months ended June 30, ~~2017 and 45.5% at~~2023 compared to 34.7% for the three months ended December 31, ~~2016.~~2022.

The commercial portfolio is monitored for potential concentrations of credit risk by market, type of lending, CRE property type, C&I and owner-occupied CRE by industry, investment CRE dependence on common tenants and industries or property types that are similarly impacted by external factors.

~~At September~~43

Loans held for sale at both June 30, ~~2017 total exposure~~2023 and December 31, 2022 are originated residential mortgages that are committed to ~~core energy industries such as drilling, extraction, pipeline construction, mining equipment, investment real estate with energy-related tenants and other related support activities approximated $57.3~~be sold into the secondary market. Loans held for sale increased by $20.7 million or ~~0.71% of the total loan portfolio as compared to $51.1 million or 0.65% of the total loan portfolio at~~251.2% from December 31, ~~2016. Exposure~~2022 due to ~~ancillary industries such as utility distribution and transportation, engineering services, manufacturers and retailers~~an ongoing effort to increase the volume of other heavy equipment used in core energy industries, approximates an additional $67.0 million in exposure or 0.83% of the total loan portfolio as compared to $77.5 million or 0.98% of the total loan portfolio at December 31, 2016. The largest exposure to any one borrower in either core energy or ancillary industries was $24.4 million to a company that operates as a natural gas distribution utility.

fixed-rate mortgage originations, which may subsequently be sold.

NON-PERFORMING ASSETS ~~IMPAIRED LOANS~~ AND LOANS PAST DUE 90 DAYS OR MORE

Non-performing assets consist ofnon-accrual loans, ~~and TDRs,~~ other real estate acquired through or in lieu of foreclosure, bank premises held for sale, and repossessed automobiles acquired to satisfy defaulted consumer loans.

TABLE 11.NON-PERFORMING ASSETS

(unaudited, dollars in thousands)
   September 30,
2017 December 31,
2016
Non-accrual loans:

Commercial real estate - land and construction
   $ 474 $ 766
Commercial real estate - improved property
   14,263 9,535
Commercial and industrial
   2,950 4,299
Residential real estate
   12,641 12,994
Home equity
   4,426 3,538
Consumer
   704 652


Totalnon-accrual loans (1)
   35,458 31,784


TDRs accruing interest:

Commercial real estate - land and construction
   —   —
Commercial real estate - improved property
   1,563 1,618
Commercial and industrial
   133 152
Residential real estate
   4,453 5,311
Home equity
   419 473
Consumer
   70 92


Total TDRs accruing interest (1)
   6,638 7,646


Totalnon-performing loans
   $ 42,096 $ 39,430


Other real estate owned and repossessed assets
   5,782 8,346


Totalnon-performing assets
   $ 47,878 $ 47,776


Non-performing loans/total portfolio loans
   0.66 % 0.63 %
Non-performing assets/total assets
   0.48 % 0.49 %
Non-performing assets/total portfolio loans, other real estate and repossessed assets
   0.75 % 0.76 %

~~(1)~~

~~TDRs on~~


(unaudited, dollars in thousands)	June 30, 2023			December 31, 2022
Non-accrual loans:
Commercial real estate - land and construction	$	—		$	112
Commercial real estate - improved property		11,196			16,254
Commercial and industrial		2,350			2,946
Residential real estate		12,650			13,695
Home equity		5,261			5,044
Consumer		98			134
Total non-accrual loans (1)		31,555			38,185
TDRs accruing interest (2):
Commercial real estate - land and construction		—			—
Commercial real estate - improved property		—			347
Commercial and industrial		—			166
Residential real estate		—			2,362
Home equity		—			330
Consumer		—			25
Total TDRs accruing interest (1)		—			3,230
Total non-performing loans	$	31,555		$	41,415
Other real estate owned and repossessed assets		1,432			1,486
Total non-performing assets	$	32,987		$	42,901
Non-performing loans/total portfolio loans		0.28	%		0.39	%
Non-accrual loans/total portfolio loans		0.28	%		0.36	%
Non-performing assets/total assets		0.19	%		0.25	%
Non-performing assets/total portfolio loans, other real estate and repossessed assets		0.30	%		0.40	%

(1)

Loans previously designated as TDRs that were also on non-accrual of $1.7 million are included in total non-accrual ~~of $3.0 million and $3.5 million at September 30, 2017 and December 31, 2016, respectively, are included in totalnon-accrual~~ ~~loans.~~

~~Non-performing~~ loans ~~which~~as of December 31, 2022.

(2)

Wesbanco eliminated the TDR classification as of January 1, 2023 due to the adoption of ASU 2022-02.

As of the adoption of ASU 2022-02, non-performing loans consist only ofnon-accrual loans. Non-performing loans ~~and TDRs, increased $2.7~~in prior periods also include loans that were previously designated as TDRs. Non-performing loans decreased $9.9 million or ~~6.8%~~23.8%, from December 31, ~~2016, primarily~~2022 due in part to ~~a purchased credit impaired loan from ESB placed onnon-accrual~~ ~~in the first quarter. TDRs~~this change. Non-accrual loans decreased ~~$1.0~~$6.6 million ~~due to successful exit strategies combined with normal repayments and fewer additions to the category due to overall improvement in economic conditions in our markets.~~or 17.4%. (Please see the Notes to the Consolidated Financial Statements for additional ~~discussion.)~~discussion).

Other real estate owned and repossessed assets decreased $2.6 million from December 31, 2016, primarily due to continued efforts to liquidate properties acquired from YCB, which totaled $3.0 million on the acquisition date.44

The following table presents past due and accruing loans excluding~~non-accrual~~ ~~and TDRs:~~ non-accruals:

TABLE 12. PAST DUE AND ACCRUING LOANS EXCLUDING~~NON-ACCRUAL~~ ~~AND TDRs~~ NON-ACCRUALS


*(unaudited, dollars in thousands)*	September 30, 2017			December 31, 2016			June 30, 2023			December 31, 2022
Loans past due 90 days or more:
Commercial real estate - land and construction	$	—		$	—		$	—		$	629
Commercial real estate - improved property		542			318			1,235			84
Commercial and industrial		20			229			537			1,586
Residential real estate		2,418			1,922			1,301			1,551
Home equity		1,289			626			1,655			1,063
Consumer		587			644			419			530

Total loans past due 90 days or more		4,856			3,739			5,147			5,443

Loans past due 30 to 89 days:
Commercial real estate - land and construction		—			—			—			910
Commercial real estate - improved property		2,808			747			7,020			2,459
Commercial and industrial		1,836			1,522			1,083			984
Residential real estate		4,730			6,080			2,486			3,582
Home equity		3,940			2,949			3,749			3,920
Consumer		3,978			4,731			4,010			3,584

Total loans past due 30 to 89 days		17,292			16,029			18,348			15,439

Total 30 days or more	$	22,148		$	19,768

Total loans 30 days or more past due							$	23,495		$	20,882
Loans past due 90 days or more and accruing to total portfolio loans		0.08	%		0.06	%		0.05	%		0.05	%
Loans past due30-89 days and accruing to total portfolio loans		0.27	%		0.26	%		0.16	%		0.14	%

Loans past due 30 days or more and accruing interest, excluding ~~TDRs~~non-accruals, increased ~~$2.4~~$2.6 million or ~~12.0%~~12.5% from December 31, ~~2016.~~2022. These loans continue to accrue interest because they are both well-secured and in the process of collection. ~~The increase in~~Loans 90 days or more past due decreased $0.3 million and represented 0.05% of total portfolio loans at both June 30, 2023 and December 31, 2022. Loans 30 to 89 days past due ~~status was primarily due to a $2.1 million increase in the commercial real estate category and~~ represented 0.27% of total loans at September 30, 2017 and 0.26% at December 31, 2016. Loans past due 90 days or more increased $1.1 million from December 31, 2016 and represented 0.08% of total loans at September 30, 2017 compared to 0.06% at December 31, 2016. The continued low levels of delinquency are the result of management’s continued focus on sound initial underwriting, timely collection of loans at their earliest stage of delinquency, relatively stable unemployment throughout our markets and generally improved economic conditions.

~~ALLOWANCE FOR CREDIT LOSSES~~

~~The allowance for loan losses of $45.5 million represented 0.71%~~0.16% of total portfolio loans at ~~September~~June 30, ~~2017~~2023 and 0.14% at December 31, 2022.

ALLOWANCE FOR CREDIT LOSSES - LOANS AND LOAN COMMITMENTS

As of June 30, 2023, the total allowance for credit losses – loans and commitments was $130.3 million, of which $120.2 million related to loans and $10.1 million related to loan commitments. The allowance for credit losses – loans was 1.08% of total portfolio loans as of June 30, 2023, compared to ~~0.70%~~1.10% as of December 31, ~~2016~~2022. Excluded from the allowance for credit losses and ~~0.69% as of September 30, 2016. Included in the~~related coverage ratio are ~~acquired YCB and ESB loans (recorded at~~ fair market value ~~at the date of acquisition of $1.7 billion) and the related allowance~~adjustments on ~~YCB and ESB~~previously acquired loans representing 0.14% of ~~$3.1~~total portfolio loans. The allowance for credit losses – loans individually-evaluated decreased $1.0 million ~~at September~~from December 31, 2022 to June 30, ~~2017. Excluding these acquired~~2023. The population of individually-evaluated loans ~~and the related allowance results in~~consisted of nine loans, with a ~~more comparable coverage ratio to prior periods.~~

total outstanding loan balance of $28.3 million. The allowance for loans ~~individually-evaluated for impairment decreased $0.3 million~~collectively-evaluated increased from December 31, ~~2016~~2022 to ~~$0.6~~June 30, 2023 by $3.4 million.

The allowance for credit losses- loan commitments ~~of $0.6~~was $10.1 million at ~~September~~June 30, ~~2017 was unchanged~~2023 as compared to $8.4 million as of December 31, ~~2016~~2022, and is included in other liabilities on the Consolidated Balance Sheets.

The allowance for credit losses by loan category, presented in Note 54, “Loans and the Allowance for Credit Losses” toof the Consolidated Financial Statements, summarizes the impact of changes in various factors that affect the allowance for loan losses in each segment of the portfolio. The allowance for ~~all segments~~credit losses under the current expected credit losses methodology ("CECL") is ~~impacted by changes in loan balances,~~calculated utilizing the PD/LGD, which is then discounted to net present value. PD is the probability the asset will default within a given time frame and LGD is the percentage of the asset not expected 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 ~~historical~~prepayment speeds, loan risk grades, portfolio mix, concentrations and loan growth. For the calculation as of June 30, 2023, the forecast was based upon a probability weighted approach which is designed to incorporate loss ~~rates adjusted for qualitative factors such as~~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 ~~conditions. The CRE~~scenarios through a probability weighted approach. At quarter-end, national unemployment was projected to be 4.0%, and ~~C&I segments~~subsequently increase to an average of 4.8% over the remainder of the ~~portfolio are also impacted by changes in the risk grading distribution~~forecast period. Loan growth along with economic drivers of the ~~portfolio as well as the migration of CRE loans from land and construction to improved property upon the completion of construction.~~

~~The loss migration rate by internal risk grade is the primary factor~~quantitative model, including those for ~~establishing~~prepayment speed fluctuations, caused the allowance for ~~all commercial~~credit losses - loans ~~and the portfolio segment loss history is the primary factor for establishing the allowance for residential real estate, home equity and consumer loans. The categorization of loans asnon-performing~~ ~~is not as significant a factor as the loss migration rate~~to increase from December 31, 2022 to June 30, 2023, by ~~risk grade or the segment loss history, although certainnon-performing~~ ~~loans that carry specific reserves are also typically considered classified under the internal risk grading system.~~ $2.4 million.

Criticized and classified loans were ~~1.24%~~1.68% of total portfolio loans, ~~improving~~or $186.8 million, at June 30, 2023, decreasing from ~~1.42% at September 30, 2016. Criticized and classified loans as a percent~~2.34% of total portfolio loans, ~~improved as overall credit quality continued~~or $250.5 million, at December 31, 2022. The $63.7 million decline is primarily due to ~~improve, enabling certain loans to be upgraded while others have paid down.~~upgrades across the commercial loan portfolio. See Footnote 4, “Loans and the Allowance for Credit Losses” for more information.

Table 13 summarizes the allocation of the allowance for credit losses to each category of the loan portfolio. The increase in the allocation of the allowance for CRE—land and construction and C&I loans is primarily driven by growth in these respective categories. The allowance for CRE—improved property was relatively flat as historical charge-offs and loan downgrades continue to decline at a faster pace than growth in the category. The allocation of allowance to residential real estate and consumer loans decreased due to lower loan volumes, while the allocation of allowance to the home equity category represented the most significant increase due to higher loan balances year over year resulting from management’s efforts to increase this category of lending.

TABLE 13. ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES – LOANS AND LOAN COMMITMENTS


*(unaudited, dollars in thousands)*	September 30, 2017		Percent of Total		December 31, 2016		Percent of Total		June 30, 2023		Percent of Total		December 31, 2022		Percent of Total
Allowance for loan losses:
Allowance for credit losses - loans:
Commercial real estate - land and construction	$	4,852		10.5	$	4,348		9.8	$	5,798		4.5	$	6,737		5.3
Commercial real estate - improved property		18,987		41.2		18,628		42.1		52,951		40.6		52,659		41.7
Commercial and industrial		9,648		20.9		8,412		19.0		32,137		24.7		31,540		25.0
Residential real estate		3,372		7.3		4,106		9.3		20,315		15.6		18,208		14.4
Home equity		4,489		9.7		3,422		7.7		4,420		3.4		4,234		3.4
Consumer		3,379		7.3		3,998		9.0		3,450		2.6		3,127		2.5
Deposit account overdrafts		760		1.7		760		1.8		1,095		0.8		1,285		1.0

Total allowance for loan losses	$	45,487		98.6	$	43,674		98.7

Allowance for loan commitments:
Total allowance for credit losses - loans									$	120,166		92.2	$	117,790		93.3
Allowance for credit losses - loan commitments:
Commercial real estate - land and construction	$	133		0.3	$	151		0.4	$	7,193		5.6	$	6,025		4.8
Commercial real estate - improved property		21		0.0		17		0.0		182		0.1		—		0.0
Commercial and industrial		233		0.5		188		0.4		527		0.4		—		0.0
Residential real estate		9		0.0		9		0.0		1,594		1.2		2,215		1.8
Home equity		211		0.5		162		0.4		628		0.5		128		0.1
Consumer		40		0.1		44		0.1		—		0.0		—		0.0

Total allowance for loan commitments		647		1.4		571		1.3

Total allowance for credit losses	$	46,134		100.0	$	44,245		100.0

Total allowance for credit losses - loan commitments										10,124		7.8		8,368		6.7
Total allowance for credit losses - loans and loan commitments									$	130,290		100.0	$	126,158		100.0

Although the allowance for credit losses is allocated as described in Table 13, the total allowance is available to absorb actual losses in any category of the loan portfolio. However, differences between management’s estimation of probable losses and actual ~~incurred losses~~net charge-offs in subsequent periods for any category may necessitate future adjustments to the ~~provision~~allowance for ~~loan~~credit losses applicable to the category. Management believes the allowance for credit losses is appropriate to absorb ~~probable~~expected losses at ~~September~~June 30, ~~2017.~~

2023.

~~DEPOSITS~~

DEPOSITS

TABLE 14. DEPOSITS


*(unaudited, dollars in thousands)*	September 30, 2017		December 31, 2016		$ Change			% Change			June 30, 2023		December 31, 2022		$ Change			% Change
Deposits
Non-interest bearing demand	$	1,851,167	$	1,789,522	$	61,645			3.4		$	4,286,235	$	4,700,438	$	(414,203	)		(8.8	)
Interest bearing demand		1,666,117		1,546,890		119,227			7.7			3,273,745		3,119,807		153,938			4.9
Money market		990,788		995,477		(4,689	)		(0.5	)		1,685,667		1,684,023		1,644			0.1
Savings deposits		1,258,887		1,213,168		45,719			3.8			2,655,680		2,741,004		(85,324	)		(3.1	)
Certificates of deposit		1,334,066		1,495,822		(161,756	)		(10.8	)		960,107		885,818		74,289			8.4

Total deposits	$	7,101,025	$	7,040,879	$	60,146			0.9		$	12,861,434	$	13,131,090	$	(269,656	)		(2.1	)

Deposits, which represent ~~WesBanco’s~~Wesbanco’s primary source of funds, are offered in various account forms at various rates through ~~WesBanco’s 172~~Wesbanco’s 194 financial ~~centers, down from 174 offices at December 31, 2016.~~centers. The FDIC insures deposits up to $250,000 per ~~account.~~account owner.

Total deposits ~~increased by $60.1~~decreased $269.7 million or ~~0.9%~~2.1% during the first ~~nine~~six months of ~~2017. Interest bearing demand,~~2023. Demand deposits decreased 3.3%, savings deposits ~~andnon-interest~~ ~~bearing demand deposits increased 7.7%~~decreased 3.1%, ~~3.8%, and 3.4%, respectively,~~ while money market ~~deposits decreased 0.5%~~deposit accounts increased 0.1%. ~~This net growth~~The overall decrease in transaction-based accounts is primarily attributable to ~~marketing, customer incentives, focused retail~~interest rate and ~~business strategies~~inflationary pressures and rising costs across the economy, combined with the Federal Reserve's tightening actions to ~~obtain more account relationships and customers’ preferences for shorter-term maturities, coupled with deposits from~~control inflation which has resulted in industry-wide deposit contraction. Deposit balances were also impacted by bonus and royalty payments for Marcellus and Utica shale gas payments from energy companies in ~~WesBanco’s~~Wesbanco’s southwestern Pennsylvania, eastern Ohio and northern West Virginia markets. In addition, ~~money market deposits were influenced primarily through WesBanco’s participation~~Wesbanco also participates in the Insured Cash Sweep ~~(ICS~~^®(ICS®) ~~money market~~ deposit program. ~~ICS~~^®ICS® reciprocal balances totaled ~~$54.0~~$794.5 million at ~~September~~June 30, ~~2017~~2023 compared to ~~$5.7~~$580.6 million at December 31, ~~2016.~~2022. In addition, ICS® one-way buys totaled $200.5 million at June 30, 2023 compared to $0 at December 31, 2022.

Certificates of deposit ~~decreased $161.8 million or 10.8% due primarily~~increased 8.4% from December 31, 2022 to the effects of an overall strategy designed to increase and remix retail deposit relationships with a focus on overall products that can be offered at a lower cost to WesBanco. The decline was also impacted by lower offered rates on maturing certificates of deposit earlier in the period and customer preferences for other~~non-maturity~~ ~~deposit types. WesBanco~~June 30, 2023. Wesbanco does not generally solicit brokered or other depositsout-of-market or over the internet, but does participate in the Certificate of Deposit Account Registry Services ~~(CDARS~~^®(CDARS®) ~~program and the ICS~~^® ~~money market deposit~~ program. ~~CDARS~~^®CDARS® balances totaled ~~$127.7~~$31.5 million in outstanding balances at ~~September~~June 30, ~~2017,~~2023, none of which ~~$95.1 million~~ representedone-way buys, compared to ~~$135.2~~$21.0 million in total outstanding balances, none of which represented one-way buys, at December 31, ~~2016, of which $100.1 million representedone-way~~ ~~buys.~~2022. Certificates of deposit greater than $250,000 were approximately ~~$214.2~~$131.7 million at ~~September~~June 30, ~~2017~~2023 compared to ~~$219.3~~$133.9 million at December 31, ~~2016. Certificates of deposit of $100,000 or more were approximately $611.6 million at September 30, 2017 compared to $681.5 million at December 31, 2016.~~2022. Certificates of deposit totaling approximately ~~$762.9~~$646.7 million at ~~September~~June 30, ~~2017~~2023 with a cost of ~~0.62%~~1.95% are scheduled to mature within the next 12 months. ~~WesBanco~~Wesbanco intends to continue to focus on its core deposit strategies and improving its overall mix of transaction accounts to total ~~deposits, while reducing single service certificate of deposit relationships.~~deposits. From~~time-to-time,~~ time to time, the ~~Company~~Bank may offer special promotions or match competitor rates on certain certificates of deposit maturities ~~of CD’s~~ and ~~other~~ savings products based on competition, sales strategies, liquidity needs and wholesale borrowing costs.

~~BORROWINGS~~

BORROWINGS

TABLE 15. BORROWINGS


*(unaudited, dollars in thousands)*	September 30, 2017		December 31, 2016		$ Change			% Change			June 30, 2023		December 31, 2022		$ Change			% Change
Federal Home Loan Bank Borrowings	$	1,015,010	$	968,946	$	46,064			4.8		$	1,380,000	$	705,000	$	675,000			95.7
Other short-term borrowings		165,576		199,376		(33,800	)		(17.0	)		101,286		135,069		(33,783	)		(25.0	)
Subordinated debt and junior subordinated debt		164,278		163,598		680			0.4			281,854		281,404		450			0.2

Total	$	1,344,864	$	1,331,920	$	12,944			1.0		$	1,763,140	$	1,121,473	$	641,667			57.2

~~Borrowings~~

While borrowings are a significant source of ~~alternative~~ funding for ~~WesBanco~~Wesbanco, they are less significant as compared to ~~deposits, and totaled 13.6% of~~ total ~~assets at both September 30, 2017 and~~deposits. FHLB borrowings increased $675.0 million from December 31, ~~2016. During~~2022 to June 30, 2023, as $1.4 billion in new advances were partially offset by $0.7 billion in maturities. The average cost of maturing FHLB advances was 4.98% during the first ~~nine~~six months of 2017, WesBanco reduced other short-term borrowings and borrowed approximately $75.0 million of FHLB borrowings with longer-term maturities. In addition, WesBanco extended the maturities of approximately $465.0 million of FHLB borrowings at2023, compared to an average cost of ~~1.57% versus current short-term FHLB rates approximating 1.30% to 1.35%.~~5.13% for new borrowings during the first six months of 2023.

Other short-term borrowings, which may consist ~~primarily~~ of ~~securities sold under~~federal funds purchased, callable repurchase agreements, overnight sweep checking accounts, and borrowings on a revolving line of credit, were $101.3 million at June 30, 2023, compared to ~~repurchase and~~$135.1 million at December 31, 2022. There were no outstanding federal funds purchased at ~~September~~either June 30, ~~2017, and may also include notes payable, were $165.6 million at September 30, 2017 compared to $199.4 million at~~2023 or December 31, ~~2016. The decrease is primarily due to a $54.0 million decrease in federal funds purchased, which was partially offset by a $20.2 million increase in repurchase agreements. WesBanco also~~2022.

Wesbanco renewed a revolving line of credit in August ~~2017,~~2022, which is a senior obligation of the parent company, with another financial institution. This line of credit, ~~which accrues~~with each advance accruing interest at the borrower selected rate of either an adjusted ~~LIBOR~~base rate, Daily SOFR, or Term SOFR, provides for aggregate unsecured borrowings of up to ~~$25.0~~$30.0 million. There ~~was~~were no outstanding ~~balance~~balances at ~~September~~either June 30, ~~2017~~2023 or December 31, ~~2016.~~2022.

Subordinated debt and junior subordinated debt consisted of $25.8 million in subordinated debentures and $138.4 million in junior subordinated debt at September 30, 2017. The subordinated debt was issued by YCB and has a fixed rate of 6.25% through the call date of December 15, 2020, at which time the interest rate converts to a variable rate equal to three-month LIBOR plus 459 basis points. The subordinated debt matures on December 15, 2025 and is considered Tier 2 regulatory capital for both WesBanco Bank and WesBanco, Inc. until it begins to phase out in 2020. The junior subordinated debt has either been issued by trusts formed by WesBanco (trust preferred securities) or assumed in various acquisitions,. At September 30, 2017, junior subordinated debt totaling $130.0 million had variable interest rates based on three-month LIBOR ranging from 2.90% to 4.45%, and junior subordinated debt totaling $8.4 million had a fixed rate of 8.00%. The junior subordinated debt matures at various dates from June 2033 through June 2038, and the related trust preferred securities are considered Tier 1 regulatory capital for WesBanco, Inc. under current regulatory guidelines.47

~~OFF-BALANCE~~ ~~SHEET ARRANGEMENTS~~

~~WesBanco enters into financial instruments withoff-balance~~ sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, letters of credit, loans approved but not closed, overdraft limits and contingent obligations to purchase loans funded by other entities. Since many of these commitments expire unused or partially used, these commitments may not reflect future cash requirements. Please refer to Note 9, “Commitments and Contingent Liabilities,” of the Consolidated Financial Statements and the “Loans and Credit Risk” section of this MD&A for additional information.

CAPITAL RESOURCES

~~Shareholders’~~

Shareholders' equity ~~was $1.4~~increased $38.3 million or 1.6% from December 31, 2022, to $2.5 billion at ~~September~~June 30, ~~2017 compared to $1.3 billion at December 31, 2016.~~2023. The increase resulted ~~primarily~~ from net income during the current ~~nine-month~~six-month period of ~~$78.6~~$87.2 million, ~~and a $6.3 million decrease in other comprehensive loss, which were partially offset by~~exceeding the declaration of common and preferred shareholder dividends totaling ~~$34.3~~$41.1 million and $5.1 million, respectively, and a $2.2 million other comprehensive loss for the ~~nine~~six months ended ~~September~~June 30, ~~2017. WesBanco~~2023. Wesbanco also increased its quarterly dividend rate $0.01 per quarter to ~~$0.26~~$0.35 per share in ~~February,~~November 2022, representing ~~an 8.3%~~a 2.9% increase over the prior quarterly rate and a cumulative ~~86%~~150% increase ~~over~~since 2010.

Wesbanco purchased a total of 162,700 shares of its common stock at a total cost of $3.7 million or $23.04 per share during the ~~lasttwenty-six~~ ~~quarters.~~

~~Under~~six month period ended June 30, 2023 under the current share repurchase ~~plan, WesBanco~~authorization. These purchases included both those on the open market for general corporate purposes as well as those purchased ~~12,987 shares during the nine month period ended September 30, 2017~~ from employees for the payment of withholding taxes to facilitate ~~the vesting of restricted stock.~~a stock compensation transaction. At ~~September~~June 30, ~~2017,~~2023, the remaining shares authorized to be purchased under ~~current authorized~~the last approved repurchase ~~plans~~plan totaled ~~1,107,320~~1,021,901 shares.

On February 17, 2017, WesBanco granted 12,000 Total Shareholder Return Plan shares for the performance period beginning January 1, 2017 and ending December 31, 2019 to certain executives. The award is determined at the end of the three-year period if the total shareholder return (“TSR”) of WesBanco common stock is equal to or greater than the 50^th percentile of the TSR of the peer group. The number of shares to be earned by the participant shall be 200% of the grant-date award if the TSR of WesBanco common stock is equal to or greater than the 75^th ~~percentile of the TSR of the peer group. Upon achieving the market-based metric, shares determined to be earned by the participant become service-based and vest in three equal annual installments.~~

On May 16, 2017, WesBanco granted 117,550 stock options to selected officers at an exercise price of $38.88. These options are service-based and vest 50% at December 31, 2017 and 50% at December 31, 2018. On the same date, WesBanco also issued 70,321 shares of time-based restricted stock and 9,003 shares of performance-based restricted stock to selected officers. The time-based restricted shares are service-based and cliff-vest 36 months from the date of grant. The performance-based restricted shares have a three-year performance period, beginning January 1, 2018, based on WesBanco’s return on average assets and return on average tangible common equity measured for each year, compared to a national peer group of financial institutions with total assets between approximately $9 billion and $15 billion. Earned performance-based restricted shares are also subject to additional service-based vesting with 50% vesting on May 16, 2021 after the completion of the three-year performance period and the final 50% vesting on May 16, 2022.

Regulatory guidelines require bank holding companies and commercial banks to maintain certain minimum capital ratios and define companies as “well capitalized” that sufficiently exceed the minimum ratios. At ~~September~~June 30, ~~2017,~~2023, regulatory capital levels for both the Bank and ~~WesBanco~~Wesbanco were substantially greater than the minimum amounts needed to be considered “well capitalized” under the regulations. There are various legal limitations under federal and state laws that limit the payment of dividends from the Bank to ~~WesBanco.~~Wesbanco. As of ~~September~~June 30, ~~2017,~~2023, under FDIC regulations, ~~WesBanco~~Wesbanco could receive, without prior regulatory approval, a dividend of approximately ~~$60.5~~$65.4 million from the Bank. ~~WesBanco intends~~

On March 26, 2020, regulators issued interim financial rule (“IFR”) “Regulatory Capital Rule: Revised Transition of the Current Expected Losses Methodology for Allowances” in response to ~~continue~~the disrupted economic activity from the spread of COVID-19. The IFR provides financial institutions that adopt CECL during 2020 with the option to ~~improve its consolidated~~delay for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided by the initial two-year delay (“five-year transition”). Wesbanco adopted CECL effective January 1, 2020 and elected to implement the five-year transition. Regulatory capital levels without the capital benefit at June 30, 2023 for both the Bank and Wesbanco would have continued to be greater than the amounts needed to be considered “well capitalized,” as the capital benefit approximated 11 to 15 basis points for three of the four regulatory ratios, ~~over time primarily from retaining a majority of its earnings, net of general corporate uses for stock repurchases, acquisitions, and other purposes.~~while total risk-based capital would have been slightly higher without the transition.

The following table summarizes risk-based capital amounts and ratios for ~~WesBanco~~Wesbanco and the Bank for the periods indicated:


																											June 30, 2023							December 31, 2022
							September 30, 2017							December 31, 2016							Minimum			Well-								Minimum							Minimum
*(unaudited, dollars in thousands)*	Minimum Value⁽¹⁾			Well Capitalized ⁽²⁾			Amount		Ratio			Minimum Amount⁽¹⁾		Amount		Ratio			Minimum Amount⁽¹⁾		Value(1)			Capitalized(2)			Amount		Ratio			Amount(1)		Amount		Ratio			Amount(1)
WesBanco, Inc.
Wesbanco, Inc.
Tier 1 leverage		4.00	%		5.00	%	$	950,758		10.21	%	$	372,546	$	901,873		9.81	%	$	367,843		4.00	%		5.00	%	$	1,612,358		9.78	%	$	659,700	$	1,576,764		9.90	%	$	636,966
Common equity Tier 1		4.50	%		6.50	%		816,721		11.70	%		314,152		773,306		11.28	%		308,462		4.50	%		6.50	%		1,467,873		11.03	%		598,623		1,432,280		11.20	%		575,500
Tier 1 capital to risk-weighted assets		6.00	%		8.00	%		950,758		13.62	%		418,869		901,873		13.16	%		411,283		6.00	%		8.00	%		1,612,358		12.12	%		798,164		1,576,764		12.33	%		767,344
Total capital to risk-weighted assets		8.00	%		10.00	%		1,022,695		14.65	%		558,492		971,762		14.18	%		548,378		8.00	%		10.00	%		1,972,773		14.83	%		1,064,219		1,933,007		15.11	%		1,023,112
WesBanco Bank, Inc.
Wesbanco Bank, Inc.
Tier 1 leverage		4.00	%		5.00	%	$	856,750		9.22	%	$	371,816	$	827,173		9.02	%	$	366,903		4.00	%		5.00	%	$	1,591,009		9.66	%	$	658,489	$	1,558,305		9.80	%	$	636,033
Common equity Tier 1		4.50	%		6.50	%		856,750		12.29	%		313,673		827,173		12.10	%		307,728		4.50	%		6.50	%		1,591,009		12.00	%		596,794		1,558,305		12.22	%		574,079
Tier 1 capital to risk-weighted assets		6.00	%		8.00	%		856,750		12.29	%		418,231		827,173		12.10	%		410,305		6.00	%		8.00	%		1,591,009		12.00	%		795,725		1,558,305		12.22	%		765,439
Total capital to risk-weighted assets		8.00	%		10.00	%		928,099		13.31	%		557,641		896,598		13.11	%		547,073		8.00	%		10.00	%		1,671,424		12.60	%		1,060,967		1,634,548		12.81	%		1,020,585

(1)

Minimum requirements to remain adequately capitalized.

(2)

Well-capitalized under prompt corrective action regulations.

~~(1)~~

~~Minimum requirements to remain adequately capitalized.~~

~~(2)~~

~~Well-capitalized under prompt corrective action regulations.~~

LIQUIDITY RISK

Liquidity is defined as a financial institution’s capacity to meet its cash and collateral obligations at a reasonable cost. Liquidity risk is the risk that an institution’s financial condition or overall safety and soundness is adversely affected by an inability, or perceived inability, to meet its obligations. An institution’s obligations, and the funding sources to meet them, depend significantly on its business mix, balance sheet structure, and the cash flows of itson- andoff-balance sheet obligations. Institutions confront various internal and external situations that can give rise to increased liquidity risk including funding mismatches, market constraints on funding sources, contingent liquidity events, changes in economic conditions, and exposure to credit, market, operation, legal and reputation risk. ~~WesBanco~~Wesbanco actively manages liquidity risk through its ability to provide adequate funds to meet changes in loan demand, unexpected outflows in deposits and other borrowings as well as to take advantage of market opportunities and meet operating cash needs. This is accomplished by maintaining liquid assets in the form of securities, sufficient borrowing capacity and a stable core deposit base. Liquidity is centrally monitored by ~~WesBanco’s~~Wesbanco’s Asset/Liability Committee (“ALCO”).

~~WesBanco~~Wesbanco determines the degree of required liquidity by the relationship of total holdings of liquid assets to the possible need for funds to meet unexpected deposit losses and/or loan demands. The ability to quickly convert assets to cash at a minimal loss is a primary function of ~~WesBanco’s~~Wesbanco’s investment portfolio management. ~~WesBanco~~Wesbanco believes its cash flow from the loan portfolio, the investment portfolio, and other sources, adequately meet its liquidity requirements. ~~WesBanco’s~~Wesbanco’s net loans to assets ratio was ~~64.1%~~63.4% at ~~September~~June 30, ~~2017~~2023 and deposit balances funded ~~71.6%~~74.1% of assets.

The following table lists the sources of liquidity from assets at ~~September~~June 30, ~~2017~~2023 expected within the next year:


*(unaudited, in thousands)*
Cash and cash equivalents	$	110,871	$	562,318
Securities with a maturity date within the next year and callable securities		153,564		254,287
Projected payments and prepayments on mortgage-backed securities and collateralized mortgage obligations (1)		201,614		300,265
Loans held for sale		26,888		28,970
Accruing loans scheduled to mature		945,407		1,008,610
Normal loan repayments		1,444,601		1,411,658

Total sources of liquidity expected within the next year	$	2,882,945	$	3,566,108

(1)

Projected prepayments are based on current prepayment speeds.

~~(1)~~

~~Projected prepayments are based on current prepayment speeds.~~

Deposit flows are another principal factor affecting overall ~~WesBanco~~Wesbanco liquidity. Deposits totaled ~~$7.1~~$12.9 billion at ~~September~~June 30, ~~2017.~~2023. Deposit flows are impacted by current interest rates, products and rates offered by ~~WesBanco~~Wesbanco versus various forms of competition, as well as customer behavior. Certificates of deposit scheduled to mature within one year totaled ~~$762.9~~$646.7 million at ~~September~~June 30, ~~2017,~~2023, with a weighted average cost of 1.95%, which includes jumbo regular certificates of deposit totaling ~~$292.2~~$282.6 million with a weighted-average cost of ~~0.81%~~2.50%, and jumbo ~~CDARS~~^®CDARS® deposits of ~~$90.6~~$25.5 million with a weighted-average cost of ~~0.91%.~~2.81%, which included no one-way buys.

~~WesBanco~~Uninsured deposits, as reported for regulatory purposes, totaled $3.9 billion at June 30, 2023, or 30% of total deposits. Uninsured deposits include $846.6 million of public funds deposits that are over the FDIC-insured limit. Wesbanco secures these public funds deposits by pledging investment securities with a market value at or above the deposit balance. Excluding these public funds, at June 30, 2023, uninsured deposits were $3.0 billion, or 24% of total deposits.

Wesbanco maintains a line of credit with the FHLB as an additional funding source. Available credit with the FHLB approximated $3.3 billion and $3.6 billion at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016 approximated $1.6 billion and $1.7 billion,~~2022, respectively. The FHLB requires securities to be specifically pledged to the FHLB and maintained in a FHLB-approved custodial arrangement if the member wishes to include such securities in the maximum borrowing capacity calculation. ~~WesBanco~~Wesbanco has elected not to specifically pledge to the FHLB otherwise unpledged securities. At ~~September~~June 30, ~~2017,~~2023, the Bank had unpledgedavailable-for-sale securities with an ~~amortized cost~~estimated fair value of ~~$330.6 million.~~$646.6 million, or 28.5% of the total available-for-sale portfolio. A portion of these securities could be sold for additional liquidity, or such securities could be pledged to secure additional FHLB ~~or other~~ borrowings. ~~Available liquidity through the sale of investment securities is limited to unpledged securities totaling 26.1%~~A significant portion of the~~available-for-sale~~ ~~portfolio. Public~~ portfolio is pledged to public deposit customers, as public deposit balances ~~for which securities are pledged~~ have increased significantly through the ~~ESB and YCB~~several acquisitions made since 2015. In addition, at June 30, 2023, the Bank had unpledged held-to-maturity securities with an estimated fair value of ~~the past two years. WesBanco’sheld-to-maturity~~ ~~portfolio currently contains $590.9 million of unpledged securities.~~$818.8 million. Most of ~~the balance of unpledged~~these securities ~~represents~~are tax-exempt municipal ~~bonds,~~securities, which can only be pledged in limited circumstances. ~~Unless in compliance with certain criteria,~~Generally, these securities cannot be sold without tainting the remainder of theheld-to-maturity ~~portfolio being~~ portfolio. If tainting occurs, all remaining securities with the held-to-maturity designation would be required to be ~~classified~~reclassified as~~available-for-sale.~~

available-for-sale, and the held-to-maturity designation would not be available to Wesbanco for a period of time.

~~WesBanco~~Wesbanco participates in the Federal Reserve Bank’sBorrower-in-Custody Program (“BIC”) whereby ~~WesBanco~~Wesbanco pledges certain consumer loans as collateral for borrowings. ~~At September~~Wesbanco did not have any BIC borrowings outstanding at June 30, ~~2017, WesBanco had a BIC line of credit totaling $202.5 million, none of which was outstanding.~~2023. Alternative funding sources may include the utilization of existing overnight lines of credit with third party banks totaling ~~$285.0~~$235.0 million, none of which ~~$4.0 million~~ was outstanding at ~~September~~June 30, ~~2017,~~2023, along with seeking other lines of credit, borrowings under repurchase agreement lines, increasing deposit rates to attract additional funds, accessing brokered deposits, or selling securitiesavailable-for-sale or certain types of loans. In addition, in March 2023, the Federal Reserve announced that it would make available additional funding to eligible depository institutions through the creation of a new Bank Term Funding Program ("BTFP"). The BTFP would offer loans of up to one year in length to eligible depository institutions that pledge U.S. Treasuries, agency debt and mortgage-backed securities, or other qualifying assets as collateral. As of June 30, 2023, Wesbanco has not utilized the BTFP for funding, but does have $615.5 million in par value of qualifying investment securities that could be used to access funds from the program.

Other short-term borrowings of ~~$165.6~~$101.3 million at ~~September~~June 30, ~~2017~~2023 consisted of callable repurchase agreements and overnight sweep checking accounts for large commercial ~~customers, and~~customers. Other short-term borrowings may also include federal funds purchased. ~~There has not been a significant fluctuation in the average deposit balances of the overnight sweep checking accounts during 2017.~~ The overnight sweep checking accounts require U.S. Government securities to be pledged equal to or greater than the average deposit balance in the related customer accounts.

The principal sources of parent company liquidity are dividends from the Bank, ~~$70.7~~$277.7 million in cash ~~and investments~~ on hand, and a ~~$25.0~~$30.0 million revolving line of credit with another bank, which did not have an outstanding balance at ~~September~~June 30, ~~2017. WesBanco~~2023. Wesbanco is in compliance with all applicable loan covenants. There are various legal limitations under federal and state laws that limit the payment of dividends from the Bank to the parent company. As of ~~September~~June 30, ~~2017,~~2023, under FDIC and State of West Virginia regulations, ~~WesBanco~~Wesbanco could receive, without prior regulatory approval, dividends of approximately ~~$60.5~~$65.4 million from the Bank. Management believes these are appropriate levels of cash for ~~WesBanco~~the parent company given the current environment. Management continuously monitors the adequacy of parent company cash levels and sources of liquidity through the use of metrics that relate current cash levels to historical and forecasted cash inflows and outflows.

~~WesBanco~~Wesbanco had outstanding commitments to extend credit in the ordinary course of business approximating ~~$1.9~~$5.1 billion and $4.6 billion at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016.~~2022, respectively. On a historical basis, only a portion of these commitments will result in an outflow of funds. Please refer to Note 9,10, “Commitments and Contingent ~~Liabilities,”~~Liabilities” of the Consolidated Financial Statements and the “Loans and ~~Loan Commitments”~~Credit Risk” section of this MD&A for additional information.

Federal financial regulatory agencies have previously ~~have~~ issued guidance to provide for sound practices for managing funding and liquidity risk and strengthening liquidity risk management practices. ~~WesBanco~~Wesbanco maintains a comprehensive management process for identifying, measuring, monitoring, and controlling liquidity risk, which is fully integrated into its risk management process. Management believes ~~WesBanco~~Wesbanco has sufficient current liquidity to meet current obligations to borrowers, depositors and others ~~as of September 30, 2017,~~ and that ~~WesBanco’s~~Wesbanco’s current liquidity risk management policies and procedures, as periodically reviewed and adjusted, adequately address this guidance.

LIBOR TRANSITION

LIBOR is a widely used short-term reference interest rate benchmark for variable rate loans and securities, borrowings, and interest rate hedge/swap transactions. In July 2017, the U.K. Financial Conduct Authority (“FCA”) announced the discontinuation of LIBOR after certain banks provided purported interest rate figures which did not truly reflect the rate at which they could borrow. In addition to FCA, as early as 2014, financial institution regulators and the Federal Financial Institutions Examination Council (“FFIEC”) began to work to develop a uniform approach to the phase-out of LIBOR because the continued reliance on LIBOR could present systematic risk to financial institutions. The Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee (“AARC”) to identify alternative reference rates to LIBOR. The AARC released consultations on contractual fallback language to prepare for the transition away for LIBOR and on June 22, 2017, identified SOFR as the recommended alternative to LIBOR.

On July 1, 2020, the FFIEC issued a Joint Statement on Managing the LIBOR Transition to further explain that new financial contracts should either utilize a reference rate other than LIBOR or have robust fallback language that defines an alternative reference rate after LIBOR’s discontinuation. The FFIEC statement encouraged supervised financial institutions to continue their efforts to prepare for the change and address the risks associated with the LIBOR transition.

On November 6, 2020, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (collectively, the “Agencies”) issued a statement providing that a financial institution may use any reference rate for its loans that the financial institution determines to be appropriate for its funding model and customer needs.

Thereafter, on November 30, 2020, the Agencies issued an additional joint statement encouraging financial institutions to continue to transition away from LIBOR as soon as practicable, but no later than December 31, 2021. Given the risks associated with the use of LIBOR, the Agencies stated that entering into new contracts that use LIBOR as a reference rate after December 31, 2021, would create safety and soundness risks.

On March 5, 2021, the U.K. FCA and Intercontinental Exchange (“ICE”) Benchmark Administration announced that the publication of the overnight, as well as, the one, three, six, and twelve month LIBOR rates will continue through June 30, 2023, which will provide additional time to wind down or renegotiate existing contracts that reference LIBOR.

On October 20, 2021, the Agencies with the Consumer Financial Protection Bureau, National Credit Union Administration, and State Bank and Credit Union Regulators, issued an additional Joint Statement on Managing the LIBOR Transition to once again emphasize the expectation that supervised institutions with LIBOR exposure continue to progress toward an orderly transition away from LIBOR. The statement confirmed that entering into new contracts, including derivatives that use LIBOR as a reference rate after December 31, 2021, would create safety and soundness risks, including litigation, operational, and consumer protection risks.

On March 15, 2022, President Biden signed the Adjustable Interest Rate (LIBOR) Act into law (the “LIBOR Act”). The LIBOR Act provides a clear and uniform federal solution for transitioning legacy contracts that either lack or contain insufficient contractual provisions addressing the permanent cessation of LIBOR by providing for the transition from LIBOR to a replacement rate and avoiding related litigation.

On December 16, 2022, the Federal Reserve Board adopted a final rule that implements the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR that will replace LIBOR in certain financial contracts after June 30, 2023. The final rule is substantially similar to the proposal with certain clarifying changes made in response to comments.
•
For a LIBOR contract that is a derivative transaction, the “Fallback Rate (SOFR)” as defined in the 2020 IBOR Fallbacks Protocol published by the International Swaps and Derivatives Association (ISDA protocol), which incorporates the statutorily prescribed tenor spread adjustment.
•
For a LIBOR contract that is an FHFA-regulated-entity contract:
•
For Federal Home Loan Bank advances, the “Fallback Rate (SOFR)” as defined in the ISDA protocol; and
•
For all other FHFA-regulated-entity contracts, SOFR (in place of overnight LIBOR) or 30-day compounded average SOFR published by FRBNY (“30-day Average SOFR,” in place of one-, three-, six-, or 12-month LIBOR), plus the applicable statutorily prescribed tenor spread adjustment.
•
For a LIBOR contract that is a FFELP ABS, either (i) 30-day Average SOFR (for one-, six-, and 12-month LIBOR) or (ii) 90-day compounded average SOFR published by FRBNY (for three-month LIBOR), plus the applicable statutorily prescribed tenor spread adjustment.
•
For all other LIBOR contracts, including consumer loans, SOFR (in place of overnight LIBOR) or term SOFR published by CME Group Benchmark Administration, Ltd. (in place of one-, three-, six-, or 12-month LIBOR), plus the statutorily prescribed tenor spread adjustment.
As early as 2018, in anticipation of the potential discontinuance of LIBOR, Wesbanco established a LIBOR transition committee to effectively manage the Company’s transition away from LIBOR in two phases. The first phase included adding additional fallback language to loan documents to allow Wesbanco to replace LIBOR with an equivalent rate index plus the margin to ensure the resulting interest rate is the same as it previously was using LIBOR. Also, as part of the first phase, Wesbanco began quoting to the Treasury Rate published by the Federal Reserve Board instead of the ICE LIBOR Swap Index (which is tied to LIBOR) when repricing certain term loans and originating new loans. The second phase consisted of working to continue to transition existing adjustable-rate loans that fluctuate monthly or periodically that are tied to LIBOR or the ICE LIBOR Swap Index. Wesbanco tracked the dollar amount and number of loans tied to LIBOR or the ICE LIBOR Swap Index, monitored current industry trends, and worked with legal counsel to ensure the smooth transition away from LIBOR. Wesbanco has not offered LIBOR for new contracts after December 31, 2021. With respect to its back-to-back swap program, Wesbanco worked with its swap counterparty customers to institute and accept the International Swaps and Derivatives Association 2020 Interbank Offered Rate Fallbacks Protocol to address LIBOR cessation in swap transactions. Moreover, Wesbanco chose 1M Term SOFR as its replacement index for new loans in the bank’s back-to-back swap program, beginning on January 1, 2022. The final step ahead of the discontinuance of LIBOR on June 30, 2023 was to transition all remaining LIBOR based loans to their appropriate replacement indexes. Ahead of the discontinuance of LIBOR, Wesbanco provided notice to its impacted customers that, for any loan rate reset occurring after the discontinuance of LIBOR, the loan rate would be determined based on a new index consistent with the LIBOR Act and recommendations from the ARRC. Following that customer communication, all necessary changes were made within the applicable loan systems. With the final step now complete, Wesbanco has concluded its transition away from LIBOR. In the coming months, the LIBOR Transition Committee will continue to meet on occasion to ensure no issues arise and to monitor any changing industry trends on the indexes used for pricing new loans.
51

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The disclosures set forth in this item are qualified by the section captioned “Forward-Looking Statements” included in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report.

MARKET RISK

The primary objective of ~~WesBanco’s~~the ALCO is to maximize net interest income within established policy parameters. This objective is accomplished through the management of balance sheet composition, market risk exposures arising from changing economic conditions and liquidity risk.

Market risk is defined as the risk of loss due to adverse changes in the fair value of financial instruments resulting from fluctuations in interest rates and ~~equity~~bond prices. Management considers interest rate risk to be ~~WesBanco’s~~Wesbanco’s most significant market risk. Interest rate risk is the exposure to adverse changes in net interest income due to changes in interest rates. The ~~relative~~ consistency of ~~WesBanco’s~~Wesbanco’s net interest income is largely dependent on effective management of interest rate risk. As interest rates change in the market, rates earned on interest ~~rate sensitive~~rate-sensitive assets and rates paid on interest ~~rate sensitive~~rate-sensitive liabilities do not necessarily move concurrently. Differing rate sensitivities may arise because fixed rate assets and liabilities may not have the same maturities, or because variable rate assets and liabilities differ in the timing and/or the percentage of rate changes.

~~WesBanco’s~~Wesbanco’s ALCO is ~~a Board-level~~an executive management committee with ~~both~~ Board representation, responsible for monitoring and ~~senior management representation, including the Chief Executive Officer, the Chief Financial Officer, the Chief Risk Management Officer and the Senior Treasury Officer. It monitors and manages~~managing interest rate risk within ~~Board-~~ approved policy ~~limits. Interest rate risk is monitored primarily through the use of an~~limits, utilizing earnings sensitivity simulation ~~model~~ and an economicvalue-at-risk ~~model to measure the fair value of net equity.~~ models. These models are highly dependent on various assumptions, which change regularly as the balance sheet and market interest rates change. The key assumptions and strategies employed are analyzed, reviewed and ~~reviewed~~documented at least quarterly by the ~~ALCO, while appropriate documentation is maintained in meeting minutes and treasury department files.~~ALCO.

The earnings sensitivity simulation model projects changes in net interest income resulting from the ~~effect~~effects of changes in interest rates. Forecasting changes in net interest income requires management to make certain assumptions regarding loan and security prepayment rates, ~~security~~ call dates, ~~adjustments~~changes to ~~variousnon-maturity~~ deposit product ~~rates, or “betas”,~~betas andnon-maturity deposit decay rates, which may not necessarily reflect the manner in which actual cash flows, yields, and costs respond to changes in market interest rates. Assumptions ~~used~~ are based ~~primarily~~ on ~~both~~ historical experience, ~~and~~ current market rates and economic forecasts, and are ~~periodically~~internally back-tested and periodically reviewed by a third-party consultants. Security portfolio maturities and prepayments are assumed to be reinvested in similar instruments and callable/prepayable security forecasts are adjusted at varying levels of interest rates. While management believes such assumptions to be reasonable, there can be no assurance that assumed prepayment rates, callable security forecasts and~~non-maturity~~ ~~deposit product behavior assumptions will approximate actual future results. Moreover, the~~consultant. The net interest income sensitivity ~~chart~~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 and also assumes that a particular change in interest rates is reflected uniformly across the yield curve, regardless of the duration of the maturity orre-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. In addition, ~~the~~this analysis ~~may~~does not consider ~~all~~ actions that management ~~could~~might employ in response to changes in interest rates, ~~and various~~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 of 100 - 200 basis points and decreases of 100 - 400 basis points across the entire yield curve, as compared to a stable 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 June 30, 2023 and December 31, 2022, 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)	June 30, 2023	December 31, 2022	Guidelines
+200	5.0%	5.6%	(10.0%)
+100	2.5%	2.8%	(7.5%)
-100	(2.7%)	(4.4%)	(7.5%)
-200	(6.3%)	(9.8%)	(10.0%)
-300	(10.6%)	(15.6%)	(15.0%)
-400	(15.5%)	N/A	(20.0%)

Adjustments to relative sensitivities are due to the impact of the current lower rate and yield curve environment on base case net interest income and the related calculation of parallel rate shock changes in rising and falling rate scenarios. Additional differences typically result from changes in the various earning assets and costing liabilities mix and growth rates, as well as adjustments for various modeling assumptions. Generally, deposit betas utilized in modeling are estimated at more conservative percentages for various rate scenarios than has been the Bank’s historical experience, as a result of both competitive factors in our markets and as public funds and institutional contract terms are renewed. Deposit betas, decay rates and loan prepayment speeds are adjusted periodically in our models for non-maturity deposits and loans. Indicated model asset sensitivity in rising rate scenarios may be less than anticipated due to slower prepayment speeds, rate floors, below forecast new loan yields, spread compression between new asset yields and funding costs, mortgage-related extension risk and other factors. In a decreasing rate environment, asset sensitivity may have greater impact on the margin than currently modeled as prepayment speeds increase, customers refinance or request rate reductions on existing loans, estimated deposit betas do not perform as modeled, or for other reasons.

In addition to the aforementioned parallel rate shock earnings sensitivity simulation model, the ALCO also reviews a “dynamic” forecast scenario to project net interest income over a rolling two-year time period. This forecast is updated at least quarterly, incorporating revisions and updated assumptions into the model for estimated loan and deposit growth, expected balance sheet re-mixing strategies, changes in forecasted rates for various maturities, competitive market spreads for various products and other assumptions. Such modeling is directionally consistent with typical parallel rate shock scenarios, and it assists in predicting changes in forecasted outcomes as well as suggesting potential adjustments to management plans to assist in achieving earnings goals.

Wesbanco also periodically measures the economic value of equity (“EVE”), which is defined as the market value of tangible equity in various rate scenarios. Generally, changes in the economic value of equity relate to changes in various assets and liabilities, changes in the yield curve, as well as changes in loan prepayment speeds and deposit decay rates. The following table presents these results and Wesbanco’s policy limits as of June 30, 2023 and December 31, 2022. Changes in EVE sensitivity since year-end 2022 relate to the change in market interest rates and their impact upon the fair values of earning assets and costing liabilities.


Immediate Change in	Percentage Change in
Interest Rates	Economic Value of Equity from Base over One Year		ALCO
(basis points)	June 30, 2023	December 31, 2022	Guidelines
+200	(1.5%)	(4.3%)	(20.0%)
+100	1.8%	(1.8%)	(10.0%)
-100	(3.5%)	(0.8%)	(10.0%)
-200	(9.8%)	(7.9%)	(20.0%)
-300	(18.1%)	(17.5%)	(30.0%)
-400	(27.8%)	N/A	(40.0%)

The Bank has significant additional borrowing capacity with the FHLB of Pittsburgh, the Federal Reserve Bank of Cleveland and various correspondent banks, and may utilize these funding sources or interest rate swap strategies as necessary to lengthen liabilities, offset mismatches in various asset maturities and manage liquidity. CDARS® and ICS® deposits also may be utilized for similar purposes for certain customers seeking higher-yielding instruments or maintaining deposit levels below FDIC insurance limits. Significant balance sheet strategies to assist in managing the net interest margin in the current interest rate environment include:

•

increasing total loans, particularly commercial and home equity loans that have variable or adjustable features;

•

selling a percentage of longer-term residential mortgage loan production into the secondary market;

•

growing demand deposit account types to increase the relative portion of these account types to total deposits;

•

employing back-to-back loan swaps for certain commercial loan customers desiring a term fixed-rate loan equivalent, with the Bank receiving a variable rate;

•

adjusting terms for FHLB short-term maturing borrowings to balance asset/liability mismatches; or paying them off with excess liquidity;

•

using CDARS® and ICS® deposit programs to manage funding needs and overall liability mix; and

•

adjusting the size, mix or duration of the investment portfolio as part of liquidity and balance sheet management strategies.

Management is aware of the significant effect that inflation or deflation has upon interest rates and ultimately upon financial performance. ~~WesBanco’s~~Wesbanco’s ability to cope with inflation or deflation is best determined by analyzing its capability to respond to changing market interest rates, as well as its ability to manage the various elements ofnon-interest income and expense during periods of increasing or decreasing inflation or deflation. ~~WesBanco~~Wesbanco monitors the level and mix of interest-rate sensitive assets and liabilities through ALCO in order to reduce the impact of inflation or deflation on net interest income. Management also controls the effects of inflation or deflation by conducting periodic reviews of the prices, costs and terms of its various products and services, ~~both in terms of the costs to offer the services~~ as well as ~~outside market influences upon such pricing,~~competitive factors, by ~~introducing~~approving new products and services or ~~reducing~~adjusting the terms and availability of existing products and services ~~and by controlling overhead expenses.~~

Interest rate risk policy limits are determined by measuring the anticipated change in net interest income over a twelve-month period, assuming an immediate and sustained 100, 200, 300 and 400 basis point increase or decrease in market interest rates across the entire yield curve, compared to a stable rate environment or base model. WesBanco’s current policy limits this exposure to a reduction of 10%, 12.5%, 15% and 20% or less, respectively, of net interest income from the base model over a twelve-month period. The table below shows WesBanco’s interest rate sensitivity at September 30, 2017 and December 31, 2016, assuming the above-noted interest rate increases as compared to a base model. Due to the current lower interest rate environment, particularly for ~~short-term rates, the 200 and 300 basis point decreasing change are not shown due to the unrealistic nature of results associated with short-term negative interest rates.~~

~~TABLE 1. NET INTEREST INCOME SENSITIVITY~~

Immediate Change in
Interest Rates
(basis points)
   Percentage Change in
Net Interest Income from Base over
One Year ALCO
Guidelines
   September 30,
2017 December 31,
2016
+400
   10.1% 4.5% (20.0%)
+300
   7.4% 4.7% (15.0%)
+200
   5.0% 4.6% (12.5%)
+100
   3.0% 3.1% (10.0%)
-100
   (3.0%) (2.3%) (10.0%)

As per the table above, the earnings simulation model at September 30, 2017 currently projects that net interest income for the next twelve-month period would decrease by 3.0% if interest rates were to fall immediately by 100 basis points, compared to a decrease of 2.3% for the same scenario as of December 31, 2016.

For rising rate scenarios, net interest income would increase by 3.0%, 5.0%, 7.4% and 10.1% if rates were to increase by 100, 200, 300 and 400 basis points, respectively, as of September 30, 2017, compared to increases of 3.1%, 4.6%, 4.7% and 4.5% in a 100, 200, 300 and 400 basis point increasing rate environment as of December 31, 2016.

The balance sheet shows generally greater asset sensitivity as of September 30, 2017, as compared to December 31, 2016, with differences resulting from changes in the mix of, and growth in various earning assets and costing liabilities,both Wesbanco as well as ~~adjustments earlier in~~its business loan customers. Over the ~~year for various modeling assumptions such as deposit beta rates, decay rates fornon-maturity~~ deposits and loan prepayment speeds based upon a third-party study of the Company’s own data for such assumptions. Generally, deposit betas are higher than those used in prior years, but loan prepayment speeds have also increased to reflect various loan classifications’ propensity to prepay over time. The net impact of these assumption changes was higher asset sensitivity in combination with balance sheet changes experienced from~~year-end.~~ ~~Management believes that overall asset sensitivity innon-parallel~~ rising rate scenarios may be somewhat neutralized due to slower prepayment speeds, slower than forecasted increases to loan yields, extension risk associated with residential mortgages and mortgage-backed securities, and other earning asset and costing liability differences versus currently modeled assumptions. Another factor to be considered in any earnings simulation are rate floors on variable rate commercial loans from prior years’ lower interest rate environments, with such floors currently averaging 4.10% on approximately $1.2 billion of commercial loans at September 30, 2017, or 30% of commercial loans, as compared to $1.3 billion or 32% of commercial loans at~~year-end.~~ Approximately 47% or $578.5 million of these loans are currently priced at their floor, as compared to 53% or $671.9 million at December 31, 2016. In a less than 100 basis point rising rate environment, these loans may not adjust as rapidly from their current floor level as compared to loans without floors. As a result of three federal funds rate increases over the past year, affecting short-term market rates used in loan pricing, more commercial loans with floors should experience a rate increase in a rising rate environment of 100 basis points or more.

~~The net interest margin has grown by 16 and 15 basis points, respectively, for the three and nine month periods ended September 30, 2017 compared to~~ last year due to higher yielding earning assets from YCB, low deposit betas for the prior three federal funds rate increases, loan growth and purchase accounting accretion. Further margin expansion would be dependent on additional federal funds and other market rate/yield curve increases, in addition to continued execution of our business strategy to remix investment securities maturities into loans and higher cost borrowings and CDs into lower costing transaction accounts while controlling the beta of transaction accounts in relation to changes in short-term market interest rates. In addition, net purchase accounting accretion is expected to decrease throughout 2017, which requires loan growth and/or rate increases to offset such impact. Management currently anticipates that one additional short-term federal funds rate increase may occur by the end of the fourth quarter, and potentially two more in 2018 towards the middle and end of the year, relatively consistent with general market and consensus economist expectations. Delays in implementing further rate increases or increases to deposit betas beyond our current modeling assumptions for existing accounts typically would have a negative impact on management’s estimates of the future direction and level of the net interest margin.

~~Customers over the past~~ few ~~years have moved maturing CD balances to lower-costing transaction accounts as well as intonon-deposit~~ products provided by the Company or other competitors. A portion of these lower-cost transaction account balances may migrate to higher-costing CDs or money market accounts as short-term rates continue to increase. Runoff of CDs from prior acquisitions, many of which customers had single service relationships as well as our own retail focus on increasing the number of relationships with our customersquarters, inflation has been ~~replaced with FHLB~~trending higher and ~~other short-term borrowings. Certificates of deposit totaling approximately $762.9 million mature within~~has impacted the ~~next year at an average~~ cost of ~~0.62%. Approximately $465 million of short-term maturing FHLB borrowings~~labor and purchased goods and services. Wesbanco is also monitoring the potential impact that inflation is having on single family home construction and multifamily properties as proposed rental rate caps and controls are put in the first nine months of 2017 were replaced with higher cost, medium-term borrowings, which strategy was intended to improve asset sensitivity and liquidity measures. Additional maturing borrowings over the remainder of the year may also be lengthened at a higher cost to the maturing borrowings’ average rate. In addition, management is currently controlling the total size of the balance sheet, without limiting prudent loan growth opportunities,place in ~~order to remain under $10 billion in total assets through the remainder of 2017 and into 2018.~~areas across Wesbanco’s footprint.

The Bank has significant additional borrowing capacity with the FHLB of Pittsburgh, the Federal Reserve Bank of Cleveland, and various correspondent banks, and may utilize these funding sources, or various interest rate swap strategies as necessary to lengthen liabilities, to help offset mismatches in various asset maturities, and manage liquidity. CDARS^® ~~and ICS~~^® ~~deposits also may be used to lengthen maturities, and for certain customers seeking higher-yielding instruments and/or to maintain their total deposit levels below FDIC insurance limits.~~

~~Current balance sheet strategies to manage the net interest margin in the expected rate environment include:~~53

~~increasing total loans, particularly commercial and home equity loans that have variable or adjustable rates through various marketing and incentive strategies;~~

~~selling additional residential mortgage loan production into the secondary market;~~

~~marketing demand deposit account types to continue to increase the portion of these account types to total deposits;~~

~~employingback-to-back~~ ~~loan swaps for customers desiring a longer-term fixed rate loan such that the Bank receives a variable rate;~~

~~re-mixing~~ ~~a portion of investment securities cash flows into loans;~~

~~extending or renewing FHLB term borrowings as necessary to balance asset/liability mismatches;~~

•

~~using the CDARS~~^®~~and ICS~~^® ~~deposit programs as necessary to manage overall liability mix, and~~

~~managing the overall size of the balance sheet to remain under $10 billion in total assets into 2018 to delay the implementation of certain costs and regulations associated with the Dodd-Frank Act.~~

As an alternative to the immediate rate shock analysis, the ALCO monitors interest rate risk by ramping or increasing interest rates 200 basis points gradually over a twelve-month period. WesBanco’s current policy limits this exposure to a change of minus 10% in net interest income from the base model for a twelve-month period and for an extended~~two-year~~ rate ramp of 400 basis points. Management believes that the ramping analysis reflects a more realistic movement of interest rates, whereas the immediate rate shock reflects a less likely scenario. The simulation model at September 30, 2017 using the 200 basis point increasing rate ramp analysis, projects that net interest income would increase 2.3% over the next twelve months, compared to a 3.2% increase at December 31, 2016. For the first twelve months of a 400 basis point rate ramp over two years, the increase in net interest income would be 3.1% in year one as compared to the base, and 13.0% in year two when compared to year two’s base. In addition, management utilizes a most likely forecast scenario to forecast net interest income over a rolling~~two-year~~ ~~time frame. This forecast is updated and reviewed quarterly, incorporating budget or current forecast assumptions into the model such as estimated loan and deposit growth, asset and liabilityre-mixing,~~ changes in base forecasted rates for various maturities, competitive market spreads for various products, marketing promotions and other assumptions. Such modeling helps to predict changes in forecasted outcomes and necessary adjustments to the plan to achieve management’s earnings goals.

WesBanco also periodically measures the economic value of equity, which is defined as the market value of tangible equity in various rate scenarios. At September 30, 2017, the market value of tangible equity as a percent of base in a 200 basis point rising rate environment indicates a decrease of 1.6%, compared to an increase of 6.7% at December 31, 2016. In a 100 basis point falling rate environment, the model indicates a decrease of 2.9%, compared to a decrease of 9.8% as of December 31, 2016. WesBanco’s policy is to limit such change to minus 10% for a 100 basis point change in interest rates, minus 20% for a 200 basis point change in interest rates, minus 30% for a 300 basis point rate change in interest rates, and minus 40% for a 400 basis point rate change in interest rates. Changes to various assets and liabilities, as well as certain changes to loan prepayment speeds and decay rates associated with~~non-maturity~~ ~~deposits, caused the change in market value of tangible equity as compared toyear-end.~~

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES—~~WesBanco’s~~ Wesbanco’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) have concluded that ~~WesBanco’s~~Wesbanco’s disclosure controls and procedures (as defined in Rules13a-15(e) and15d-15(e) under the Securities Exchange Act of 1934, as amended), based on their evaluation of these controls and procedures as of the end of the period covered by this Form10-Q, are effective to ensure that information required to be disclosed by ~~WesBanco~~Wesbanco in the reports it files under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to ~~WesBanco’s~~Wesbanco’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS—~~WesBanco’s~~ Wesbanco’s management, including the CEO and CFO, does not expect that ~~WesBanco’s~~Wesbanco’s disclosure controls and internal controls will prevent all errors and all fraud. While ~~WesBanco’s~~Wesbanco’s disclosure controls and procedures are designed to provide reasonable assurance of achieving their objective, no control system, no matter how well conceived and operated, can provide absolute assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls.

CHANGES IN INTERNAL CONTROLS—There were no changes in ~~WesBanco’s~~Wesbanco's internal control over financial reporting that occurred during our fiscal quarter ended ~~September~~June 30, ~~2017~~2023 as required to be reported by paragraph (d) of Rules13a-15 and15d-15 under the Securities Exchange Act of 1934, that materially affected, or are reasonably likely to materially affect, ~~WesBanco’s~~the Company's internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

~~WesBanco~~Wesbanco is involved in various lawsuits, claims, investigations and proceedings, which arise in the ordinary course of business. While any litigation contains an element of uncertainty, ~~WesBanco~~Wesbanco does not believe that a material loss related to such proceedings or claims pending or known to be threatened is reasonably possible.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

As of ~~September~~June 30, ~~2017, WesBanco~~2023, Wesbanco had ~~two~~one active ~~one million share~~ stock repurchase ~~plans. The first plan~~plan. It was ~~originally~~ approved by the Board of Directors on ~~March 21, 2007~~February 24, 2022 for 3.2 million shares and ~~the second, which is incremental to the first, was approved October 22, 2015. Each~~ provides for shares to be repurchased for general corporate purposes, which may include a subsequent resource for potential acquisitions, shareholder dividend reinvestment and employee benefit plans. The timing, price and quantity of purchases are at the discretion of ~~WesBanco,~~Wesbanco, and the plan may be discontinued or suspended at any ~~time, although the~~time. The plan has ~~no expiration date.~~1,021,901 shares remaining for repurchase.

Other repurchases in the second quarter included those for Wesbanco's Employee Stock Ownership and 401(k) Plan and dividend reinvestment plans and those from employees for the payment of withholding taxes to facilitate a stock compensation transaction.

The following table presents the monthly share purchase activity during the quarter ended ~~September~~June 30, ~~2017:~~2023:


Period	Total Number of Shares Purchased (1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans (2)		Maximum Number of Shares that May Yet Be Purchased Under the Plans
Balance at March 31, 2023								1,183,207

April 1, 2023 to April 30, 2023		49,321	$	29.23		—		1,183,207
May 1, 2023 to May 31, 2023		121,246	$	22.20		99,428		1,083,779
June 1, 2023 to June 30, 2023		72,564	$	24.62		61,878		1,021,901
Total		243,131	$	24.35		161,306		1,021,901

(1)

Total shares purchased consist of open market purchases transacted in the KSOP for employee benefit and dividend reinvestment plans.

(2)

Consists of open market purchases and shares purchased from employees for the payment of withholding taxes to facilitate a stock compensation transaction.

Period
   Total Number
of Shares
Purchased    Average Price
Paid per
Share    Total Number of
Shares
Purchased as
Part of Publicly
Announced Plans    Maximum Number
of Shares that May
Yet Be Purchased
Under the Plans
Balance at June 30, 2017
            1,107,320
July 1, 2017 to July 31, 2017

Open market repurchases
   —      $ —      —      1,107,320
Other transactions (1)
   15,887    42.75    N/A    N/A
August 1, 2017 to August 31, 2017

Open market repurchases
   —      $ —      —      1,107,320
Other transactions (1)
   1,955    37.54    N/A    N/A
September 1, 2017 to September 30, 2017

Open market repurchases
   —      $ —      —      1,107,320
Other transactions (1)
   1,143    38.98    N/A    N/A








Third Quarter 2017

Open market repurchases
   —      $ —      —      1,107,320
Other transactions (1)
   18,985    41.99    N/A    N/A

~~(1)~~

~~Consists of open market purchases transacted for employee benefit and dividend reinvestment plans.~~

~~N/A – Not applicable~~

ITEM 5. OTHER INFORMATION

Securities Trading Plans of Directors and Executive Officers

During the three months ended June 30, 2023, none of our directors or executive officers adopted, modified or terminated any Rule 10b5-1 trading arrangement or any “non-Rule 10b5-1 trading arrangement, as those terms are defined in Item 408 of Regulation S-K.”

ITEM 6. EXHIBITS


~~31.1~~10.1		Form of Wesbanco, Inc. Incentive Bonus, Option & Restricted Stock Plan - Stock Option Agreement.

10.2		Form of Wesbanco, Inc. Incentive Bonus, Option & Restricted Stock Plan - Restricted Stock Agreement.

10.3		Eighth Amendment to the Wesbanco, Inc. KSOP, effective January 1, 2023.

10.4		Ninth Amendment to the Wesbanco, Inc. KSOP, effective July 31, 2023.

10.5		Employment Agreement, dated as of July 21, 2023, by and among Wesbanco Bank, Inc., Wesbanco, Inc. and Jeffrey H. Jackson (incorporated by reference to Exhibit 10.1 of Form 8-K filed by the Registrant with the Securities and Exchange Commission on July 21, 2023)

10.6		First Amendment to Amended and Restated Employment Agreement, dated as of July 21, 2023, by and among Wesbanco Bank, Inc., Wesbanco, Inc. and Todd F. Clossin (incorporated by reference to Exhibit 10.2 of Form 8-K filed by the Registrant with the Securities and Exchange Commission on July 21, 2023)

10.7		First Amendment to Restricted Stock Agreement, dated as of July 21, 2023, by and between Wesbanco, Inc. and Todd F. Clossin (incorporated by reference to Exhibit 10.3 of Form 8-K filed by the Registrant with the Securities and Exchange Commission on July 21, 2023)

31.1		Certification of Chief Executive Officer of Periodic Report Pursuant to Rule13a-15(e) or Rule15d-15(e).

~~31.2~~
31.2		Certification of Chief Financial Officer of Periodic Report Pursuant to Rule13a-15(e) or Rule15d-15(e).

~~32.1~~
32.1		Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

~~101~~		~~The following materials from WesBanco’s Quarterly Report on Form10-Q~~ ~~for~~
101.INS		Inline XBRL Instance Document (the instance document does not appear in the ~~quarter ended September 30, 2017, formatted~~Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at September 30, 2017 and December 31, 2016, (ii) the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016, (iii) the Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2017 and 2016, (iv) the Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016, and (v) the Notes to Consolidated Financial Statements.Exhibit 101).

~~SIGNATURES~~

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			WESBANCO, INC.

~~Date: October 30, 2017~~			~~/s/ Todd F. Clossin~~

			~~Todd F. Clossin~~
		Date: August 3, 2023	/s/ Jeffrey H. Jackson
	Jeffrey H. Jackson
	President and Chief Executive Officer (Principal Executive Officer)

Date: ~~October 30, 2017~~August 3, 2023			/s/ ~~Robert H. Young~~
			Daniel K. Weiss, Jr.
			~~Robert H. Young~~ Daniel K. Weiss, Jr.
			Executive Vice President and Chief Financial Officer
	(Principal Financial ~~and Accounting~~ Officer)


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(unaudited, in thousands, except shares and per share amounts)	2023		2022			2023		2022
INTEREST AND DIVIDEND INCOME
Loans, including fees	$	145,741	$	96,412		$	279,147	$	189,532
Interest and dividends on securities:
Taxable		18,483		15,825			37,569		29,937
Tax-exempt		4,723		4,706			9,513		9,049
Total interest and dividends on securities		23,206		20,531			47,082		38,986
Other interest income		7,108		1,504			10,380		2,103
Total interest and dividend income		176,055		118,447			336,609		230,621
INTEREST EXPENSE
Interest bearing demand deposits		17,203		1,153			28,309		1,965
Money market deposits		7,220		383			11,472		704
Savings deposits		5,860		330			9,860		595
Certificates of deposit		2,906		1,116			4,109		2,389
Total interest expense on deposits		33,189		2,982			53,750		5,653
Federal Home Loan Bank borrowings		16,713		411			28,013		986
Other short-term borrowings		492		48			909		96
Subordinated debt and junior subordinated debt		4,094		2,778			8,039		3,948
Total interest expense		54,488		6,219			90,711		10,683
NET INTEREST INCOME		121,567		112,228			245,898		219,938
Provision for credit losses		3,028		(812	)		6,605		(4,250	)
Net interest income after provision for credit losses		118,539		113,040			239,293		224,188
NON-INTEREST INCOME
Trust fees		6,918		6,527			14,412		14,362
Service charges on deposits		6,232		6,487			12,401		12,577
Electronic banking fees		5,010		5,154			9,615		10,499
Net securities brokerage revenue		2,523		2,258			5,098		4,478
Bank-owned life insurance		3,189		2,384			5,149		6,264
Mortgage banking income		601		1,328			1,027		3,251
Net securities gains (losses)		205		(1,183	)		350		(1,832	)
Net gain (loss) on other real estate owned and other assets		871		(1,302	)		1,104		(2,108	)
Other income		6,292		5,330			10,337		9,874
Total non-interest income		31,841		26,983			59,493		57,365
NON-INTEREST EXPENSE
Salaries and wages		44,471		41,213			86,422		80,150
Employee benefits		11,511		8,722			23,570		17,880
Net occupancy		6,132		6,119			12,775		13,354
Equipment and software		8,823		7,702			17,885		15,713
Marketing		2,763		2,749			5,088		5,170
FDIC insurance		2,871		1,937			5,755		3,459
Amortization of intangible assets		2,282		2,579			4,583		5,178
Restructuring and merger-related expense		35		52			3,188		1,646
Other operating expenses		17,549		15,946			33,294		32,019
Total non-interest expense		96,437		87,019			192,560		174,569
Income before provision for income taxes		53,943		53,004			106,226		106,984
Provision for income taxes		9,063		10,256			19,005		20,114
Net income		44,880		42,748			87,221		86,870
Preferred stock dividends		2,531		2,531			5,063		5,063
Net income available to common shareholders	$	42,349	$	40,217		$	82,158	$	81,807
EARNINGS PER COMMON SHARE
Basic	$	0.71	$	0.67		$	1.39	$	1.35
Diluted	$	0.71	$	0.67		$	1.38	$	1.34
AVERAGE COMMON SHARES OUTSTANDING
Basic		59,263,949		60,036,103			59,240,958		60,736,858
Diluted		59,385,847		60,185,207			59,389,314		60,899,270
DIVIDENDS DECLARED PER COMMON SHARE	$	0.35	$	0.34		$	0.70	$	0.68


	Common Stock					Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive (Loss) Income			Deferred Benefits for Directors			Total
*(unaudited, in thousands, except shares* *and per share amounts)*	Shares Outstanding			Amount
	Shares Outstanding			Amount
December 31, 2016		43,931,715		$	91,524	$	680,507		$	597,071		$	—		$	(27,126	)	$	(568	)	$	1,341,408

Net income		—			—		—			78,584			—			—			—			78,584
Other comprehensive income		—			—		—			—			—			6,289			—			6,289

Comprehensive income		—			—		—			—			—			—			—			84,873
Common dividends declared ($0.78 per share)		—			—		—			(34,326	)		—			—			—			(34,326	)
Treasury shares acquired		(12,987	)		—		—			—			(488	)		—			—			(488	)
Stock options exercised		40,834			75		858			—			188			—			—			1,121
Issuance of restricted stock		74,023			154		(154	)		—			—			—			—			—
Stock compensation expense		—			—		1,970			—			—			—			—			1,970
Deferred benefits for directors- net		—			—		167			—			—			—			(167	)		—

September 30, 2017		44,033,585		$	91,753	$	683,348		$	641,329		$	(300	)	$	(20,837	)	$	(735	)	$	1,394,558


December 31, 2015		38,459,635		$	80,304	$	516,294		$	549,921		$	(2,640	)	$	(20,954	)	$	(793	)	$	1,122,132

Net income		—			—		—			62,417			—			—			—			62,417
Other comprehensive income		—			—		—			—			—			15,892			—			15,892

Comprehensive income		—			—		—			—			—			—			—			78,309
Common dividends declared ($0.72 per share)		—			—		—			(28,946	)		—			—			—			(28,946	)
Shares issued for acquisition		5,423,348			11,071		162,934			—			3,144			—			—			177,149
Treasury shares acquired		(130,041	)		—		56			—			(3,730	)		—			—			(3,674	)
Stock options exercised		31,541			2		(165	)		—			955			—			—			792
Issuance of restricted stock		76,400			—		(2,271	)		—			2,271			—			—			—
Stock compensation expense		—			—		1,389			—			—			—			—			1,389
Deferred benefits for directors- net		—			—		(230	)		—			—			—			230			—

September 30, 2016		43,860,883		$	91,377	$	678,007		$	583,392		$	—		$	(5,062	)	$	(563	)	$	1,347,151


*(unaudited, in thousands)*	September 9, 2016
Purchase Price:
Fair value of WesBanco shares issued	$	177,149
Cash consideration for outstanding YCB shares		43,349

Total purchase price	$	220,498
Fair value of:
Tangible assets acquired	$	1,398,183
Core deposit and other intangible assets acquired		11,957
Liabilities assumed		(1,330,887	)
Net cash received in the acquisition		48,212

Fair value of net assets acquired	$	127,465

Goodwill recognized	$	93,033


*(unaudited, in thousands)*	September 9, 2016
Assets acquired
Cash and due from banks	$	48,212
Securities		173,223
Loans		1,012,410
Goodwill and other intangible assets		104,990
Accrued income and other assets (1)		212,550

Total assets acquired	$	1,551,385

Liabilities assumed
Deposits	$	1,193,010
Borrowings		123,001
Accrued expenses and other liabilities		14,876

Total liabilities assumed		1,330,887

Net assets acquired	$	220,498


*(unaudited, in thousands)*	September 9, 2016
Goodwill recognized as of December 31, 2016	$	92,889
Change in fair value of net assets acquired:
Assets
Loans		(1,156	)
Accrued income and other assets		743
Liabilities
Borrowings		—
Accrued expenses and other liabilities		269

Fair value of net assets acquired	$	(144	)

Increase in goodwill recognized		144

Goodwill recognized as of September 30, 2017	$	93,033


	September 30, 2017
	One Year		One to		Five to			After		Mortgage-backed
*(unaudited, in thousands)*	or less		Five Years		Ten Years			Ten Years		and Equity		Total
Available-for-sale
U.S. Government sponsored entities and agencies	$	—	$	11,967	$	16,855		$	6,908	$	36,589	$	72,319
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies⁽¹⁾		—		—		—			—		963,474		963,474
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies⁽¹⁾		—		—		—	��		—		121,834		121,834
Obligations of states and political subdivisions		7,723		17,886		36,514			44,724		—		106,847
Corporate debt securities		—		30,483		5,020			—		—		35,503
Equity securities⁽²⁾		—		—		—			—		5,555		5,555

Totalavailable-for-sale securities	$	7,723	$	60,336	$	58,389		$	51,632	$	1,127,452	$	1,305,532

Held-to-maturity⁽³⁾
U.S. Government sponsored entities and agencies	$	—	$	—	$	—		$	—	$	11,874	$	11,874
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies⁽¹⁾		—		—		—			—		177,725		177,725
Obligations of states and political subdivisions		4,703		88,402		412,322			315,286		—		820,713
Corporate debt securities		—		2,804		31,632			—		—		34,436

Totalheld-to-maturity securities	$	4,703	$	91,206	$	443,954		$	315,286	$	189,599	$	1,044,748

Total	$	12,426	$	151,542	$	502,343		$	366,918	$	1,317,051	$	2,350,280


	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
*(unaudited, in thousands)*	2017			2016			2017			2016
Gross realized gains	$	29		$	602		$	603		$	2,517
Gross realized losses		(23	)		(4	)		(92	)		(224	)

Net realized gains	$	6		$	598		$	511		$	2,293


	Allowance for Credit Losses By Category
	For the Nine Months Ended September 30, 2017 and 2016
	Commercial			Commercial
	Real Estate-			Real Estate-
	Land and			Improved			Commercial			Residential			Home						Deposit
*(unaudited, in thousands)*	Construction			Property			& Industrial			Real Estate			Equity			Consumer			Overdraft			Total
Balance at December 31, 2016:
Allowance for loan losses	$	4,348		$	18,628		$	8,412		$	4,106		$	3,422		$	3,998		$	760		$	43,674
Allowance for loan commitments		151			17			188			9			162			44			—			571

Total beginning allowance for credit losses		4,499			18,645			8,600			4,115			3,584			4,042			760			44,245

Provision for credit losses:
Provision for loan losses		415			1,619			2,842			(203	)		1,259			922			680			7,534
Provision for loan commitments		(18	)		4			45			—			49			(4	)		—			76

Total provision for credit losses		397			1,623			2,887			(203	)		1,308			918			680			7,610

Charge-offs		—			(1,752	)		(2,255	)		(797	)		(372	)		(2,877	)		(947	)		(9,000	)
Recoveries		89			492			649			266			180			1,336			267			3,279

Net charge-offs		89			(1,260	)		(1,606	)		(531	)		(192	)		(1,541	)		(680	)		(5,721	)

Balance at September 30, 2017:
Allowance for loan losses		4,852			18,987			9,648			3,372			4,489			3,379			760			45,487
Allowance for loan commitments		133			21			233			9			211			40			—			647

Total ending allowance for credit losses	$	4,985		$	19,008		$	9,881		$	3,381		$	4,700		$	3,419		$	760		$	46,134


Balance at December 31, 2015:
Allowance for loan losses	$	4,390		$	14,748		$	10,002		$	4,582		$	2,883		$	4,763		$	342		$	41,710

Allowance for loan commitments		157			26			260			7			117			46			—			613

Total beginning allowance for credit losses		4,547			14,774			10,262			4,589			3,000			4,809			342			42,323

Provision for credit losses:
Provision for loan losses		498			1,351			2,827			(67	)		301			918			559			6,387
Provision for loan commitments		(5	)		—			(40	)		2			8			(2	)		—			(37	)

Total provision for credit losses		493			1,351			2,787			(65	)		309			916			559			6,350

Charge-offs		(73	)		(1,732	)		(2,883	)		(529	)		(345	)		(2,733	)		(585	)		(8,880	)
Recoveries		3			1,406			241			351			171			1,199			167			3,538

Net charge-offs		(70	)		(326	)		(2,642	)		(178	)		(174	)		(1,534	)		(418	)		(5,342	)

Balance at September 30, 2016:
Allowance for loan losses		4,818			15,773			10,187			4,337			3,010			4,147			483			42,755
Allowance for loan commitments		152			26			220			9			125			44			—			576

Total ending allowance for credit losses	$	4,970		$	15,799		$	10,407		$	4,346		$	3,135		$	4,191		$	483		$	43,331


	Non-accrual Loans⁽¹⁾
*(unaudited, in thousands)*	September 30, 2017		December 31, 2016
*(unaudited, in thousands)*	September 30, 2017		December 31, 2016
Commercial real estate:
Land and construction	$	474	$	766
Improved property		14,263		9,535

Total commercial real estate		14,737		10,301

Commercial and industrial		2,950		4,299
Residential real estate		12,641		12,994
Home equity		4,426		3,538
Consumer		704		652

Total	$	35,458	$	31,784


	TDRs
	September 30, 2017						December 31, 2016
*(unaudited, in thousands)*	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Commercial real estate:
Land and construction	$	—	$	4	$	4	$	—	$	8	$	8
Improved property		1,563		446		2,009		1,618		688		2,306

Total commercial real estate		1,563		450		2,013		1,618		696		2,314

Commercial and industrial		133		164		297		152		151		303
Residential real estate		4,453		1,810		6,263		5,311		2,212		7,523
Home equity		419		419		838		473		297		770
Consumer		70		139		209		92		190		282

Total	$	6,638	$	2,982	$	9,620	$	7,646	$	3,546	$	11,192


	New TDRs⁽¹⁾
	For the Nine Months Ended
	September 30, 2017						September 30, 2016
*(unaudited, dollars in thousands)*	Number of Modifications		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Modifications		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:
Land and construction		—	$	—	$	—		—	$	—	$	—
Improved Property		1		190		185		—		—		—

Total commercial real estate		1		190		185		—		—		—

Commercial and industrial		1		64		59		2		125		122
Residential real estate		2		22		17		3		150		143
Home equity		3		141		132		1		44		41
Consumer		4		42		33		10		70		54

Total		11	$	459	$	426		16	$	389	$	360


			December 31, 2016
			Fair Value Measurements Using:
	December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Investments Measured at Net Asset
*(unaudited, in thousands)*	2016		(level 1)		(level 2)		(level 3)		Value
Recurring fair value measurements
Trading securities	$	7,071	$	5,633	$	—	$	—	$	1,438
Securities -available-for-sale
U.S. Government sponsored entities and agencies		54,043		—		54,043		—		—
Residential mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		938,289		—		938,289		—		—
Commercial mortgage-backed securities and collateralized mortgage obligations of government sponsored entities and agencies		96,810		—		96,810		—		—
Obligations of state and political subdivisions		111,663		—		111,663		—		—
Corporate debt securities		35,301		—		35,301		—		—
Equity securities		5,070		2,938		2,132		—		—

Total securities -available-for-sale	$	1,241,176	$	2,938	$	1,238,238	$	—	$	—

Other assets - interest rate derivatives agreements	$	5,596	$	—	$	5,596	$	—	$	—

Total assets recurring fair value measurements	$	1,253,843	$	8,571	$	1,243,834	$	—	$	1,438

Other liabilities - interest rate derivatives agreements	$	5,199	$	—	$	5,199	$	—	$	—

Total liabilities recurring fair value measurements	$	5,199	$	—	$	5,199	$	—	$	—


Nonrecurring fair value measurements
Impaired loans	$	3,405	$	—	$	—	$	3,405	$	—
Other real estate owned and repossessed assets		8,346		—		—		8,346		—
Loans held for sale		17,315		—		17,315		—		—

Total nonrecurring fair value measurements	$	29,066	$	—	$	17,315	$	11,751	$	—


	Accumulated Other Comprehensive Income/(Loss)⁽¹⁾
*(unaudited, in thousands)*	Defined Benefit Pension Plan			Unrealized Gains (Losses) on Securities Available-for-Sale			Unrealized Gains on Securities Transferred from Available-for-Sale to Held-to-Maturity			Total
Balance at December 31, 2016	$	(17,758	)	$	(9,890	)	$	522		$	(27,126	)

Other comprehensive income before reclassifications		—			4,740			—			4,740
Amounts reclassified from accumulated other comprehensive income		1,679			35			(165	)		1,549

Period change		1,679			4,775			(165	)		6,289

Balance at September 30, 2017	$	(16,079	)	$	(5,115	)	$	357		$	(20,837	)


Balance at December 31, 2015	$	(17,539	)	$	(4,162	)	$	747		$	(20,954	)

Other comprehensive income before reclassifications		—			16,065			—			16,065
Amounts reclassified from accumulated other comprehensive income		1,407			(1,428	)		(152	)		(173	)

Period change		1,407			14,637			(152	)		15,892

Balance at September 30, 2016	$	(16,132	)	$	10,475		$	595		$	(5,062	)


Immediate Change in Interest Rates (basis points)	Percentage Change in Net Interest Income from Base over One Year		ALCO Guidelines
Immediate Change in Interest Rates (basis points)	September 30, 2017	December 31, 2016	ALCO Guidelines
+400	10.1%	4.5%	(20.0%)
+300	7.4%	4.7%	(15.0%)
+200	5.0%	4.6%	(12.5%)
+100	3.0%	3.1%	(10.0%)
-100	(3.0%)	(2.3%)	(10.0%)


Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans		Maximum Number of Shares that May Yet Be Purchased Under the Plans
Balance at June 30, 2017								1,107,320

July 1, 2017 to July 31, 2017
Open market repurchases		—	$	—		—		1,107,320
Other transactions (1)		15,887		42.75		N/A		N/A

August 1, 2017 to August 31, 2017
Open market repurchases		—	$	—		—		1,107,320
Other transactions (1)		1,955		37.54		N/A		N/A

September 1, 2017 to September 30, 2017
Open market repurchases		—	$	—		—		1,107,320
Other transactions (1)		1,143		38.98		N/A		N/A


Third Quarter 2017
Open market repurchases		—	$	—		—		1,107,320
Other transactions (1)		18,985		41.99		N/A		N/A