WESBANCO INC

Table 7: Loans Summary

Allowance for Credit Losses

The ACL under the CECL methodology is calculated on non-PCD loans utilizing a PD and LGD approach, 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, portfolio mix, concentrations, and loan growth. At September 30, 2026, the primary drivers of the change in the allowance model calculation from December 31, 2025 were loan growth, changes in macroeconomic variables and prepayment speeds, increases to specific reserves on individually-evaluated loans, and improvements in certain qualitative factors. 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 4.7%, and subsequently increase to an average of 5.3% over the remainder of the forecast period. In addition to the quantitative and qualitative changes noted above, the allowance is reflective of $18.9 million in net charge-offs recorded during the first nine months of 2026. Accrued interest receivable for loans was $85.5 million and $87.8 million at September 30, 2026 and December 31, 2025, respectively. Wesbanco has made an accounting policy election to exclude accrued interest from the measurement of the ACL because the Company has a policy in place to reverse or write-off accrued interest when loans are placed on non-accrual.

The following table summarizes changes in the ACL applicable to each category of the loan portfolio: