XML 31 R24.htm IDEA: XBRL DOCUMENT v3.25.1
Business Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segments

NOTE 14. BUSINESS SEGMENTS

Wesbanco operates two reportable segments: community banking and trust and investment services. Wesbanco’s community banking segment offers a wide range of banking products and services through various delivery channels and business units, including commercial demand, individual demand and time deposit accounts; commercial, mortgage and individual installment loans, and certain non-traditional offerings, such as insurance and securities brokerage services. For purposes of determining the community banking reportable segment, these lines of business are aggregated, in accordance with the review of the CODM. The trust and investment services segment offers trust services as well as various alternative investment products, including mutual funds, and also serves as investment adviser to a family of mutual funds called the “WesMark Funds.” The fund family is comprised of the WesMark Large Company Fund, the WesMark Balanced Fund, the WesMark Small Company Fund, the WesMark Government Bond Fund, the WesMark West Virginia Municipal Bond Fund, and the WesMark Tactical Opportunity Fund. Corporate support functions, which are generally all attributable to the parent company, do not represent a reportable segment and are presented within Corporate Other for purposes of reconciling to the consolidated financials. All of Wesbanco’s revenue is derived from domestic operations, and Wesbanco has no major customers providing greater than 10% of total segment revenue. Wesbanco’s CODM is its President and Chief Executive Officer. The CODM uses net income as the reported measure of segment profit or loss in making business decisions regarding reinvestment into the Company’s segments, using profits for acquisitions and/or paying dividends to shareholders. In addition, net income is used to monitor budget versus actual results, to perform competitive analysis by benchmarking to peers and as a factor to establish compensation for certain employees. Wesbanco does not have any material intra-entity sales or transfers.

The market value of trust assets totaled approximately $7.0 billion and $5.6 billion at March 31, 2025 and 2024, respectively. These assets are held by Wesbanco in fiduciary or agency capacities and are not included as assets on Wesbanco’s Consolidated Balance Sheets. Therefore, substantially all of Wesbanco’s assets are attributable to the community banking segment.

The following tables present selected financial information with respect to Wesbanco’s business segments for the three months ended March 31, 2025 and 2024 as received and reviewed on a regular basis by the CODM:

(in thousands)

 

Community
Banking

 

 

Trust and
Investment
Services

 

 

Corporate
Other

 

 

Totals

 

For The Three Months Ended March 31, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

253,232

 

 

$

—

 

 

$

—

 

 

 

 

Less: Interest expense (1)

 

 

89,649

 

 

 

935

 

 

 

4,129

 

 

 

 

Net interest income

 

 

163,583

 

 

 

(935

)

 

 

(4,129

)

 

 

 

Less: Provision for credit losses

 

 

68,883

 

 

 

—

 

 

 

—

 

 

 

 

Net interest income after provision for credit losses

 

 

94,700

 

 

 

(935

)

 

 

(4,129

)

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

    Trust fees

 

 

—

 

 

 

6,673

 

 

 

—

 

 

 

 

    WesMark fees

 

 

—

 

 

 

2,024

 

 

 

—

 

 

 

 

    Service charges on deposits

 

 

8,587

 

 

 

—

 

 

 

—

 

 

 

 

    Digital banking income

 

 

5,404

 

 

 

—

 

 

 

—

 

 

 

 

    Net swap fee and valuation income

 

 

961

 

 

 

—

 

 

 

—

 

 

 

 

    Net securities brokerage revenue

 

 

2,701

 

 

 

—

 

 

 

—

 

 

 

 

    Net insurance services revenue

 

 

955

 

 

 

—

 

 

 

—

 

 

 

 

    Bank-owned life insurance

 

 

3,428

 

 

 

—

 

 

 

—

 

 

 

 

    Payment processing fees

 

 

891

 

 

 

—

 

 

 

—

 

 

 

 

    Net securities losses

 

 

(318

)

 

 

—

 

 

 

—

 

 

 

 

    Net loss on other real estate owned and other assets

 

 

(40

)

 

 

—

 

 

 

—

 

 

 

 

    Mortgage banking income

 

 

1,140

 

 

 

—

 

 

 

—

 

 

 

 

    Other income

 

 

2,250

 

 

 

—

 

 

 

9

 

 

 

 

Total revenues

 

$

120,659

 

 

$

7,762

 

 

$

(4,120

)

 

$

124,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less (2):

 

 

 

 

 

 

 

 

 

 

 

 

    Salaries and wages

 

 

46,615

 

 

 

1,962

 

 

 

—

 

 

 

 

    Employee benefits

 

 

12,490

 

 

 

480

 

 

 

—

 

 

 

 

    Net occupancy (3)

 

 

7,721

 

 

 

57

 

 

 

—

 

 

 

 

    Equipment and software (4)

 

 

12,993

 

 

 

57

 

 

 

—

 

 

 

 

    Miscellaneous taxes

 

 

4,233

 

 

 

1

 

 

 

—

 

 

 

 

    Professional services

 

 

3,655

 

 

 

138

 

 

 

1,825

 

 

 

 

    Marketing

 

 

2,362

 

 

 

20

 

 

 

—

 

 

 

 

    FDIC insurance

 

 

4,187

 

 

 

—

 

 

 

—

 

 

 

 

    Supplies

 

 

1,685

 

 

 

53

 

 

 

—

 

 

 

 

    Telecommunications

 

 

1,210

 

 

 

—

 

 

 

—

 

 

 

 

    General administration

 

 

1,370

 

 

 

28

 

 

 

130

 

 

 

 

    Merger-related and restructuring

 

 

13,691

 

 

 

—

 

 

 

6,319

 

 

 

 

    Amortization of intangibles

 

 

4,183

 

 

 

40

 

 

 

—

 

 

 

 

    Corporate overhead expenses (5)

 

 

—

 

 

 

1,580

 

 

 

—

 

 

 

 

    Other segment items (6)

 

 

4,886

 

 

 

31

 

 

 

(36

)

 

 

 

Segment (loss) profit before provision for income taxes

 

 

(622

)

 

 

3,315

 

 

 

(12,358

)

 

 

 

Provision for income taxes

 

 

109

 

 

 

696

 

 

 

(1,478

)

 

 

 

Segment (loss) profit

 

$

(731

)

 

$

2,619

 

 

$

(10,880

)

 

$

(8,992

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment (loss) profit

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

 

 

 

 

 

 

 

 

 

(2,531

)

Net loss available to common shareholders

 

 

 

 

 

 

 

 

 

 

$

(11,523

)

(1) Within Corporate other, this represents interest expense on subordinated and junior subordinated debt issued by the parent company of Wesbanco.

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(3) Includes depreciation and amortization expense of $1.9 million for the community banking segment. Such expenses for the trust and investment services segment are immaterial.

(4) Includes depreciation and amortization expense of $2.4 million for the community banking segment. Such expenses for the trust and investment services segment are immaterial.

(5) Corporate overhead expenses allocated to the trust and investment services segment consist of audit and accounting services, human resources, bank administration and information technology.

(6) Other segment items included in segment expenses for the community banking segment include ATM and digital banking interchange expenses, correspondent service fee expense, postage expense, corporate insurance expense and other general banking service expenses. Other segment items included in segment expenses for the trust and investment services segment include postage expense, securities safekeeping expense and other miscellaneous operating expenses.

 

(in thousands)

 

Community
Banking

 

 

Trust and
Investment
Services

 

 

Corporate
Other

 

 

Totals

 

For The Three Months Ended March 31, 2024:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

195,333

 

 

$

—

 

 

$

—

 

 

 

 

Less: Interest expense (1)

 

 

76,264

 

 

 

1,028

 

 

 

4,075

 

 

 

 

Net interest income

 

 

119,069

 

 

 

(1,028

)

 

 

(4,075

)

 

 

 

Less: Provision for credit losses

 

 

4,014

 

 

 

—

 

 

 

—

 

 

 

 

Net interest income after provision for credit losses

 

 

115,055

 

 

 

(1,028

)

 

 

(4,075

)

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

    Trust fees

 

 

—

 

 

 

6,099

 

 

 

—

 

 

 

 

    WesMark fees

 

 

—

 

 

 

1,983

 

 

 

—

 

 

 

 

    Service charges on deposits

 

 

6,784

 

 

 

—

 

 

 

—

 

 

 

 

    Digital banking income

 

 

4,704

 

 

 

—

 

 

 

—

 

 

 

 

    Net swap fee and valuation income

 

 

1,563

 

 

 

—

 

 

 

—

 

 

 

 

    Net securities brokerage revenue

 

 

2,548

 

 

 

—

 

 

 

—

 

 

 

 

    Net insurance services revenue

 

 

944

 

 

 

—

 

 

 

—

 

 

 

 

    Bank-owned life insurance

 

 

2,067

 

 

 

—

 

 

 

—

 

 

 

 

    Payment processing fees

 

 

829

 

 

 

—

 

 

 

—

 

 

 

 

    Net securities gains

 

 

537

 

 

 

—

 

 

 

—

 

 

 

 

    Net gain on other real estate owned and other assets

 

 

154

 

 

 

—

 

 

 

—

 

 

 

 

    Mortgage banking income

 

 

693

 

 

 

—

 

 

 

—

 

 

 

 

    Other income

 

 

1,724

 

 

 

—

 

 

 

—

 

 

 

 

Total revenues

 

$

137,602

 

 

$

7,054

 

 

$

(4,075

)

 

$

140,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less (2):

 

 

 

 

 

 

 

 

 

 

 

 

    Salaries and wages

 

 

41,145

 

 

 

1,852

 

 

 

—

 

 

 

 

    Employee benefits

 

 

11,700

 

 

 

484

 

 

 

—

 

 

 

 

    Net occupancy (3)

 

 

6,571

 

 

 

52

 

 

 

—

 

 

 

 

    Equipment and software (4)

 

 

10,001

 

 

 

7

 

 

 

—

 

 

 

 

    Miscellaneous taxes

 

 

3,159

 

 

 

3

 

 

 

—

 

 

 

 

    Professional services

 

 

3,004

 

 

 

76

 

 

 

1,922

 

 

 

 

    Marketing

 

 

1,870

 

 

 

15

 

 

 

—

 

 

 

 

    FDIC insurance

 

 

3,448

 

 

 

—

 

 

 

—

 

 

 

 

    Supplies

 

 

1,296

 

 

 

42

 

 

 

—

 

 

 

 

    Telecommunications

 

 

1,263

 

 

 

—

 

 

 

—

 

 

 

 

    General administration

 

 

1,360

 

 

 

33

 

 

 

25

 

 

 

 

    Merger-related and restructuring

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

    Amortization of intangibles

 

 

2,044

 

 

 

48

 

 

 

—

 

 

 

 

    Corporate overhead expenses (5)

 

 

—

 

 

 

1,523

 

 

 

—

 

 

 

 

    Other segment items (6)

 

 

4,224

 

 

 

60

 

 

 

(36

)

 

 

 

Segment profit (loss) before provision for income taxes

 

 

46,517

 

 

 

2,859

 

 

 

(5,986

)

 

 

 

Provision for income taxes

 

 

8,425

 

 

 

600

 

 

 

(1,328

)

 

 

 

Segment profit (loss)

 

$

38,092

 

 

$

2,259

 

 

$

(4,658

)

 

$

35,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

 

 

 

 

 

 

 

 

 

(2,531

)

Net income available to common shareholders

 

 

 

 

 

 

 

 

 

 

$

33,162

 

(1) Within Corporate other, this represents interest expense on subordinated and junior subordinated debt issued by the parent company of Wesbanco.

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(3) Includes depreciation and amortization expense of $1.7 million for the community banking segment. Such expenses for the trust and investment services segment are immaterial.

(4) Includes depreciation and amortization expense of $2.1 million for the community banking segment. Such expenses for the trust and investment services segment are immaterial.

(5) Corporate overhead expenses allocated to the trust and investment services segment consist of audit and accounting services, human resources, bank administration and information technology.

(6) Other segment items included in segment expenses for the community banking segment include ATM and digital banking interchange expenses, correspondent service fee expense, postage expense, corporate insurance expense and other general banking service expenses. Other segment items included in segment expenses for the trust and investment services segment include postage expense, securities safekeeping expense and other miscellaneous operating expenses.