Financial Performance - Net income for the three months ended September 30, 2024, was $37,272 thousand, compared to $36,842 thousand for the same period in 2023, reflecting a year-over-year increase of 1.17%[11]. - Comprehensive income for the three months ended September 30, 2024, was $90,676 thousand, significantly higher than $3,563 thousand in 2023, reflecting a substantial increase[12]. - For the three months ended September 30, 2024, net income was $37,272 thousand, compared to $36,842 thousand for the same period in 2023, representing a growth of 1.2%[13]. - For the nine months ended September 30, 2024, net income totaled $101,881 thousand, compared to $124,064 thousand for the same period in 2023, showing a decline of 17.9%[14]. - Basic earnings per common share for the three months ended September 30, 2024, was $0.54, compared to $0.58 in the same period of 2023, a decline of 6.90%[11]. Asset Growth - Total assets increased to $18,514,169 thousand as of September 30, 2024, up from $17,712,374 thousand at December 31, 2023, representing a growth of 4.53%[9]. - Total deposits reached $13,837,343 thousand as of September 30, 2024, up from $13,168,704 thousand at December 31, 2023, indicating an increase of 5.06%[9]. - Total shareholders' equity as of September 30, 2024, was $2,801,585 thousand, up from $2,447,941 thousand as of September 30, 2023, indicating a year-over-year increase of 14.4%[14]. - The number of common shares outstanding increased to 66,871,479 as of September 30, 2024, from 59,364,696 as of September 30, 2023, marking an increase of 12.7%[14]. Loan Portfolio - Net portfolio loans increased to $12,310,558 thousand as of September 30, 2024, compared to $11,507,786 thousand at the end of 2023, a growth of 6.98%[9]. - The total portfolio loans increased to $12,451,430,000 at September 30, 2024, up from $11,638,461,000 at December 31, 2023, indicating growth in the loan portfolio[49]. - The total amount of loans classified as "Pass" was $8.63 billion as of September 30, 2024, up from $7.98 billion as of December 31, 2023, representing a growth of approximately 8.2%[62]. - The total amount of loans classified as "Classified - substandard" was $93.2 million as of September 30, 2024, compared to $75.5 million as of December 31, 2023, representing an increase of approximately 23.5%[62]. Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2024, was $4,798 thousand, down from $6,327 thousand in 2023, a decrease of 24.16%[11]. - The total allowance for credit losses on loans and loan commitments increased to $149,097 thousand as of September 30, 2024, up from $139,279 thousand at the beginning of the year, representing a growth of approximately 7.0%[52]. - The provision for loan losses for the nine months ended September 30, 2024, was $19,774 thousand, compared to $12,973 thousand for the same period in 2023, indicating a significant increase of approximately 52.5%[52]. - The net charge-offs recorded during the first nine months of 2024 amounted to $9,600,000, contributing to changes in the allowance for credit losses[50]. Non-Interest Income and Expenses - Non-interest income for the three months ended September 30, 2024, was $29,612 thousand, slightly down from $30,879 thousand in 2023, a decrease of 4.10%[11]. - Total non-interest expense for the nine months ended September 30, 2024, was $300,768 thousand, compared to $290,498 thousand in 2023, an increase of 3.55%[11]. - Non-interest income for Q3 2024 decreased by $1.3 million, or 4.1%, primarily due to declines in net swap fee and valuation income[140]. - Total non-interest expense for Q3 2024 increased by $3.2 million or 3.3%, mainly due to higher restructuring and merger-related expenses[161]. Mergers and Acquisitions - Wesbanco recorded merger-related expenses of $2,000,000 for the Premier acquisition during the nine months ended September 30, 2024[33]. - The merger with Premier is expected to be completed in the first quarter of 2025, pending regulatory and shareholder approvals[33]. - Wesbanco is in the process of merging with Premier Financial Corp., which may impact future operations and financial performance[133]. Deposits and Borrowings - Total deposits increased by $668,796,000 in 2024, contrasting with a decrease of $(40,022,000) in 2023, showcasing strong deposit growth[16]. - Interest paid on deposits and other borrowings increased to $255,053,000 in 2024 from $149,960,000 in 2023, indicating rising borrowing costs[16]. - Federal Home Loan Bank borrowings decreased by $175.0 million or 13.0% from December 31, 2023, to September 30, 2024, while total borrowings decreased by 8.1%[197]. Investment and Securities - The fair value of available-for-sale debt securities was $2,228,527 thousand, which includes $1,595,045 thousand in residential mortgage-backed securities[107]. - The total fair value of available-for-sale debt securities was $2,194,329,000, with a significant portion classified under level 2 inputs[110]. - The total unrealized losses on debt securities in the available-for-sale portfolio are accounted for as an adjustment to other comprehensive income in shareholders' equity[46]. Tax and Regulatory - The effective tax rate for the first nine months of 2024 was 17.3%, a decrease from 17.6% in the same period of 2023[142]. - Regulatory capital levels for Wesbanco were substantially greater than the minimum amounts needed to be considered "well capitalized" as of September 30, 2024[201]. Miscellaneous - The company issued 7,272,728 shares of common stock to complete a $200 million common equity capital raise on August 1, 2024, primarily to support the pro-forma bank's balance sheet and regulatory capital ratios[36]. - The projected tax benefits from these partnerships for 2024 are expected to total $4.5 million, an increase from $3.8 million in 2023, indicating a growth of 18.4%[80].

Financial Performance - Net income for Q3 2024 was $34.7 million, or $0.54 per share, compared to $34.3 million and $0.58 per share in Q3 2023[1]. - Non-interest income for Q3 2024 was $29.6 million, a decrease of 4.1% year-over-year, primarily due to lower net swap fee income[11]. - Net income available to common shareholders was $34,741,000, a 1.3% increase from $34,311,000 in the prior year[32]. - Net income per common share - diluted decreased by 6.9% to $0.54 compared to $0.58 in the same quarter of 2023[32]. - Net income available to common shareholders for Q3 2024 was $34,741,000, an increase from $26,385,000 in Q2 2024, representing a growth of 31.5%[40]. - The company reported a total net income available to common shareholders of $94,287,000 for the year to date, down from $116,470,000 in the previous year[45]. Loan and Deposit Growth - Total loans increased by $1.1 billion year-over-year, with a 10.0% growth rate, and deposits reached $13.8 billion, up 5.7% year-over-year[3][5]. - Total commercial loans reached $8.9 billion, reflecting an 11.9% year-over-year increase and a 7.5% quarter-over-quarter annualized growth[4]. - Deposits grew 12.1% annualized from the previous quarter, with total demand deposits representing 54% of total deposits[6]. - Total deposits increased by 5.7% to $13,837,343,000 from $13,090,228,000 in 2023[36]. - Portfolio loans, net of unearned income, rose by 10.0% to $12,451,430,000 from $11,315,873,000 in 2023[36]. Interest Income and Expenses - Total interest and dividend income increased by 16.4% year-over-year to $213,729,000 for the three months ended September 30, 2024, compared to $183,589,000 in 2023[32]. - Net interest income after provision for credit losses was $116,344,000, reflecting a 4.5% increase from $111,355,000 in the same period last year[32]. - Total interest expense rose by 40.5% to $92,587,000 for the three months ended September 30, 2024, compared to $65,907,000 in 2023[32]. - The net interest margin for Q3 2024 was 2.95%, stable compared to the previous quarter, but down 8 basis points year-over-year due to higher funding costs[9][10]. Credit Quality and Allowance for Losses - The allowance for credit losses increased to 1.13% of total loans, amounting to $140.9 million, due to higher unemployment assumptions[8]. - The provision for credit losses decreased by 24.2% to $4,798,000 from $6,327,000 in the same period last year[32]. - The annualized net loan charge-offs/average loans increased significantly to 0.11% from 0.03%, a rise of 266.67%[34]. - Total past due loans increased to $54,189,000 in Q3 2024, up from $29,408,000 in Q2 2024, marking an increase of 84.0%[42]. - The allowance for credit losses on loans increased to $140,872,000 in Q3 2024 from $136,509,000 in Q2 2024, a rise of 2.0%[42]. Capital and Regulatory Ratios - Regulatory capital ratios remain strong, with a Tier I risk-based capital ratio of 12.89% and a common equity Tier 1 capital ratio of 11.89% as of September 30, 2024[17]. - Total shareholders' equity increased by 14.4% to $2,801,585,000 from $2,447,941,000 in 2023[36]. - Common equity tier 1 capital ratio (CET 1) rose to 11.89% in Q3 2024 from 10.58% in Q2 2024[42]. - Tier I leverage capital ratio improved to 10.69% in Q3 2024 from 9.72% in Q2 2024[42]. Merger and Acquisition - The company raised $200 million in common equity during the quarter to support future growth and the pending acquisition of Premier Financial Corp.[3][16]. - The proposed merger with Premier Financial Corp. is subject to various risks, including integration challenges and shareholder approvals[23]. - The merger is expected to yield cost savings and revenue synergies, although these may not be fully realized within the anticipated timeframes[23]. - Shareholders are encouraged to read the joint proxy statement/prospectus regarding the merger for important information[29]. - The merger's success is contingent on obtaining necessary governmental approvals and shareholder votes[23]. Operational Efficiency - Non-interest expense for Q3 2024 was $99.2 million, a 2.0% increase year-over-year, driven by higher operating expenses[13]. - The efficiency ratio improved to 65.29% for the three months ended September 30, 2024, compared to 66.11% in the previous quarter, indicating enhanced operational efficiency[46]. - Full-time equivalent employees decreased to 2,277 in Q3 2024 from 2,370 in Q2 2024, a reduction of 3.9%[40].

Financial Performance - Net income for the three months ended June 30, 2024, was $28,916 thousand, a decrease of 35.6% from $44,880 thousand in the same period of 2023[10]. - Earnings per common share (diluted) for the three months ended June 30, 2024, was $0.44, down from $0.71 in the same period of 2023[10]. - Comprehensive income for the three months ended June 30, 2024, was $28,630 thousand, compared to $14,652 thousand in 2023, indicating a significant increase[11]. - Net income available to common shareholders for Q2 2024 was $26.385 million, a decrease of 37.8% from $42.349 million in Q2 2023[33]. - For the six months ended June 30, 2024, net income available to common shareholders was $59.546 million, a decrease of 27.5% from $82.158 million in the same period of 2023[33]. Asset and Loan Growth - Total assets increased to $18,128,375 thousand as of June 30, 2024, compared to $17,712,374 thousand at December 31, 2023, reflecting a growth of approximately 2.34%[8]. - Net portfolio loans reached $12,121,002 thousand as of June 30, 2024, an increase from $11,507,786 thousand at December 31, 2023, representing a growth of about 5.3%[8]. - Total loans amounted to $12,282,944 thousand, an increase from $11,654,815 thousand at December 31, 2023, representing a growth of approximately 5.4%[48]. - The total portfolio loans increased to $12,257,511 thousand at June 30, 2024, compared to $11,638,461 thousand at December 31, 2023, indicating a growth of about 5.3%[48]. - Total deposits increased to $13,432,373 thousand as of June 30, 2024, compared to $13,168,704 thousand at December 31, 2023, marking a growth of approximately 2%[8]. Credit Losses and Provisions - Provision for credit losses increased to $10,541 thousand for the three months ended June 30, 2024, compared to $3,028 thousand in the same period of 2023, indicating a significant rise in credit risk[10]. - The total allowance for credit losses on loans and loan commitments increased to $145.703 million as of June 30, 2024, up from $139.279 million at the end of 2023, representing a growth of approximately 4.1%[51]. - The provision for loan losses for the six months ended June 30, 2024, was $13.991 million, compared to a provision of $4.876 million for the same period in 2023, indicating a significant increase[51]. - The net charge-offs for the first half of 2024 amounted to $8.157 million, compared to $2.500 million for the same period in 2023, reflecting a rise of approximately 226.3%[51]. - The allowance for credit losses on loans increased to $136.509 million as of June 30, 2024, from $130.290 million at the end of June 2023, marking an increase of about 4.5%[51]. Non-Interest Income and Expenses - Non-interest income totaled $31,355 thousand for the three months ended June 30, 2024, slightly down from $31,841 thousand in 2023[10]. - Total non-interest income of $61.984 million for the six months ended June 30, 2024, compared to $59.493 million for the same period in 2023, indicating an increase of 4.2%[130]. - Total non-interest expense increased to $102,392 thousand for the three months ended June 30, 2024, compared to $96,437 thousand in 2023, reflecting a rise of approximately 6.5%[10]. - Non-interest expense for the six months ended June 30, 2024, was $199.585 million, up from $192.560 million for the same period in 2023, representing an increase of 3.1%[130]. - The total service charges on deposits for the three months ended June 30, 2024, were $7.111 million, up from $6.232 million in 2023[121]. Securities and Investments - As of June 30, 2024, total available-for-sale debt securities amounted to $2.42 billion, with a fair value of $2.10 billion, reflecting unrealized losses of $318.76 million[37]. - The total debt securities held by the company reached $3.60 billion, with a fair value of $3.13 billion, resulting in total unrealized losses of $470.12 million[41]. - The fair value of available-for-sale debt securities with unrealized losses totaled $2,029,469 thousand as of June 30, 2024, with unrealized losses amounting to $318,759 thousand[45]. - The company holds no crypto assets, thus the amendments regarding crypto asset accounting are not expected to impact its financial statements[23]. - The company reported net securities gains of $672,000 for the six months ended June 30, 2024, compared to $350,000 for the same period in 2023[43]. Mergers and Acquisitions - The company entered into a definitive Agreement and Plan of Merger with Premier Financial Corp. on July 25, 2024, which will result in Premier Financial merging into Wesbanco, Inc.[132]. - The merger agreement stipulates that Premier Financial shareholders will receive 0.80 shares of Wesbanco's common stock for each share of Premier Financial's common stock[133]. - The company expects to receive approximately $200 million in gross proceeds from a private placement of 7,272,728 shares at $27.50 per share, closing on August 1, 2024[139]. Economic and Market Conditions - The primary macroeconomic drivers for the allowance model included a projected national unemployment rate of 4.4% at quarter-end, expected to rise to an average of 4.8% over the forecast period[49]. - The effective tax rate for the first half of 2024 was 17.6%, a slight decrease from 17.9% in the first half of 2023[153]. - The company operates through 192 branches and 182 ATM machines across multiple states, significantly impacted by economic factors such as market interest rates and regional economic conditions[143].

Financial Performance - Net income available to common shareholders was $33,162 thousand for Q1 2024, a decrease of 16.8% from $39,810 thousand in Q1 2023[11]. - Comprehensive income for Q1 2024 was $27,464 thousand, significantly lower than $70,358 thousand in Q1 2023, a decrease of 61.0%[13]. - Net income for the three months ended March 31, 2024, was $35.693 million, a decrease from $42.341 million in the same period of 2023, representing a decline of 15.5%[14]. - Net income available to common shareholders for the three months ended March 31, 2024, was $33.162 million, a decrease from $39.810 million in the same period of 2023[34]. - Basic earnings per common share decreased to $0.56 for Q1 2024 from $0.67 in Q1 2023[34]. Income and Expenses - Net interest income after provision for credit losses decreased to $109,952 thousand for the three months ended March 31, 2024, down from $120,755 thousand in the same period of 2023, a decline of 8.97%[11]. - Non-interest income increased to $30,629 thousand for Q1 2024, up 10.7% from $27,653 thousand in Q1 2023[11]. - Non-interest expense increased by $4.2 million or 4.5% year-over-year, reaching $97.2 million, due to higher salaries, equipment expenses, and other operating costs[139]. - The provision for credit losses was $4,014 thousand for Q1 2024, compared to $3,577 thousand in Q1 2023, indicating a rise of 12.2%[11]. Assets and Liabilities - Total assets increased to $17,772,735 thousand as of March 31, 2024, compared to $17,712,374 thousand at December 31, 2023, reflecting a growth of 0.34%[9]. - Total liabilities increased to $15,234,373 thousand as of March 31, 2024, compared to $15,179,312 thousand at December 31, 2023, a growth of 0.36%[9]. - The total shareholders' equity increased to $2.538 billion as of March 31, 2024, from $2.475 billion as of March 31, 2023, reflecting an increase of 2.5%[14]. Deposits and Loans - Total deposits rose to $13,496,773 thousand as of March 31, 2024, an increase of 2.48% from $13,168,704 thousand at the end of 2023[9]. - The recorded investment in total loans increased to $11.89 billion as of March 31, 2024, up from $11.65 billion at the end of 2023, showing growth in the loan portfolio[49]. - The total portfolio loans as of March 31, 2024, amounted to $11.873 billion, compared to $11.638 billion as of December 31, 2023, indicating an increase of approximately 2.02%[53]. - The total amount of loans classified as "Pass" increased to $8.164 billion as of March 31, 2024, from $7.977 billion as of December 31, 2023, reflecting a growth of about 2.34%[61]. Credit Quality - The provision for loan losses for the three months ended March 31, 2024, was $4,450 thousand, a significant decrease from a provision of $(3,621) thousand in the same period of 2023[52]. - Non-performing loans decreased to 0.28% of total portfolio loans as of March 31, 2024, down from 0.36% a year earlier[150]. - The allowance for credit losses on loans was $129,190 thousand at the end of Q1 2024, up from $130,675 thousand at the end of 2023, showing a slight decrease of about 1.1%[52]. - Criticized loans classified as "compromised" totaled $171.536 million as of March 31, 2024, compared to $183.174 million as of December 31, 2023, showing a decrease of approximately 6.36%[61]. Dividends - The company declared a dividend of $0.36 per common share for Q1 2024, up from $0.35 in Q1 2023, reflecting a 2.86% increase[11]. - Common dividends declared were $21.179 million for Q1 2024, with a per-share dividend of $0.36, compared to $20.561 million and $0.35 per share in Q1 2023[16]. Market and Economic Conditions - The allowance for credit losses methodology incorporates macroeconomic factors, with a projected national unemployment rate of 4.3% at quarter-end, expected to rise to 4.7%[50]. - Wesbanco recorded $5.9 million in net charge-offs during Q1 2024, reflecting the impact of economic conditions on credit quality[50]. - The primary macroeconomic drivers for the allowance for credit losses include forecasts of national unemployment projected at 4.3%[188]. Trust and Investment Services - Total trust fees for the three months ended March 31, 2024, were $8.08 million, an increase from $7.49 million in the same period of 2023, representing an increase of 7.9%[119]. - Digital banking income for the three months ended March 31, 2024, was $4.70 million, compared to $4.61 million in the same period of 2023, showing a growth of 1.9%[119]. - The market value of assets managed or held in custody by the trust and investment services segment was approximately $5.6 billion at March 31, 2024, compared to $5.0 billion at the same date in 2023, reflecting a growth of 12%[127].

Financial Performance - For the twelve months ended December 31, 2023, net income available to common shareholders was $148.9 million, or $2.51 per diluted share, down from $182.0 million, or $3.02 per diluted share in 2022[194]. - Net income available to common shareholders was $148.91 million in 2023, down from $181.99 million in 2022, a decline of 18.2%[204]. - Earnings per common share—basic decreased to $2.51 in 2023 from $3.03 in 2022, representing a decline of 17.2%[198]. - Return on average assets fell to 0.86% in 2023, down from 1.08% in 2022, a decrease of 20.4%[198]. - Interest income increased by $197.9 million, or 38.5%, to $711.5 million in 2023 compared to 2022[194]. - Non-interest income increased by $3.1 million, or 2.6%, driven by net securities gains and gains on other real estate owned[194]. - The provision for credit losses was recorded in 2023, contrasting with a benefit from a release of provision in the prior year[194]. - Interest expense increased by $190.8 million in 2023 compared to 2022 due to higher costs across all interest-bearing liability categories[214]. - The cost of interest-bearing liabilities rose by 183 basis points to 2.25% in 2023[214]. - The cost of interest-bearing deposits increased by 148 basis points from 2022 to 2023, reflecting the impact of rising federal funds rates[212]. Assets and Capital - As of December 31, 2023, Wesbanco's total assets approximated $17.7 billion, with a market value of assets under management in the trust and investment services segment at approximately $5.4 billion[16]. - Total assets as of December 31, 2023, were $17.7 billion, an increase of 4.6% compared to December 31, 2022[195]. - Wesbanco's Common Equity Tier 1 (CET1) ratio was 10.99%, Tier 1 capital ratio was 12.05%, and total capital ratio was 14.91%, all exceeding minimum requirements[58]. - Wesbanco Bank's CET1, Tier 1, and total capital to risk-adjusted assets ratios were 12.13%, 12.13%, and 12.97%, respectively, as of December 31, 2023[58]. - Wesbanco's leverage ratio was 9.87% and the Bank's leverage ratio was 9.93% as of December 31, 2023[60]. - Wesbanco's capital levels met the "well-capitalized" standards under the Federal Deposit Insurance Corporation Improvement Act as of December 31, 2023[64]. - Common equity tier 1 capital ratio (CET 1) decreased to 10.99% in 2023 from 11.20% in 2022, a decline of 1.9%[198]. Loans and Securities - Total portfolio loans rose to $11.6 billion, reflecting an 8.7% increase year-over-year[195]. - As of December 31, 2023, approximately 21% of Wesbanco's loan portfolio was comprised of residential real estate loans, and 56% was comprised of commercial real estate loans[114]. - Approximately 36% of Wesbanco's total securities portfolio was invested in municipal bonds as of December 31, 2023[117]. - Criticized and classified loan balances decreased to 2.22% of total portfolio loans, down from 2.34% at December 31, 2022[195]. Dividends and Shareholder Returns - For the year ended December 31, 2023, Wesbanco declared cash dividends of approximately $10.1 million to preferred shareholders and $82.9 million to common shareholders[43]. - The quarterly dividend was increased to $0.36 per share in Q4 2023, marking the seventeenth increase over the last thirteen years[197]. - Dividends declared per common share increased to $1.41 in 2023 from $1.37 in 2022, a growth of 2.9%[198]. - The cumulative total shareholder return for Wesbanco was 105.70 as of December 31, 2023, compared to 118.62 in 2022[172]. Employee and Corporate Culture - Wesbanco employed 2,321 full-time equivalent employees as of December 31, 2023, with an average tenure of approximately 10 years for all employees and over 16 years for executive officers[27]. - The turnover rate for Wesbanco in 2023 was 19%, while the turnover rate for officers was 15%[28]. - Wesbanco's corporate culture emphasizes customer and employee satisfaction, with initiatives focused on diversity and inclusion[29][31]. - The company has engaged in leadership training and talent development programs, contributing to its recognition as one of the best workplaces in several markets[32]. Community Engagement and Philanthropy - In 2023, Wesbanco provided philanthropic donations totaling $0.9 million and employees contributed 11,500 volunteer hours[33]. - The Wesbanco CDC has made over 231 loans totaling over $178 million, benefiting businesses in low-income communities and creating over 6,800 jobs[88]. - Wesbanco has been recognized with the "America Saves Designation of Savings Excellence for Banks" for eight consecutive years, highlighting its efforts to encourage savings during America Saves Week 2023[88]. - Wesbanco originated over $2 billion in community development loans in the past five years, supporting local communities[89]. Regulatory and Compliance - The company is subject to enhanced supervision due to exceeding the $10 billion asset threshold, impacting its regulatory compliance requirements[35]. - The USA PATRIOT Act imposes significant compliance obligations on Wesbanco, which could have legal and reputational consequences if not adhered to[95]. - The new Community Reinvestment Act amendments will be effective January 1, 2026, with Wesbanco categorized as a "large bank" under these rules[90]. Risks and Challenges - The company has faced intense competition from various financial institutions, which may impact its market share and profit potential[34]. - Increased competition from various financial institutions and fintech companies may hinder Wesbanco's ability to attract and retain customers[126]. - Changes in economic or political policies could adversely impact Wesbanco's business and its customers[101]. - The implementation of Basel III capital standards may negatively impact Wesbanco's capital requirements and overall financial condition[106]. - Wesbanco's ability to cope with inflation and manage non-interest income and expenses could significantly impact profitability[113]. - Significant declines in U.S. and global markets could negatively impact Wesbanco's earnings and credit quality of investment securities[111]. - The current expected credit losses accounting standard (CECL) could result in significant volatility in the estimation of credit losses, affecting financial results[120]. - The financial services industry is undergoing rapid technological change, and failure to keep pace could negatively affect Wesbanco's growth and profitability[146]. Operational Aspects - Wesbanco operates 192 branches and 183 ATMs across several states, including West Virginia, Ohio, and Kentucky[16]. - The company relies on third-party vendors for processing transactions, which could lead to disruptions if those vendors fail to maintain adequate controls[145]. - Wesbanco's growth may be hindered by the loss of key employees, which could adversely impact its business and financial condition[134]. - The company faces operational risks, including reputational risk and the risk of fraud or theft, which could materially affect its operations[133]. - Wesbanco's liquidity could be negatively impacted if it faces limitations on borrowings from the Federal Home Loan Bank system[135]. Cybersecurity - Cybersecurity risks continue to evolve, with no material impact from incidents involving third-party service providers in the last year[156]. - Wesbanco maintains a comprehensive cybersecurity program integrated into its enterprise risk management framework[153]. - The Enterprise Risk Management Committee includes directors with extensive experience in banking and cybersecurity, overseeing the bank's information security strategy[158].

Financial Performance - Net income for the three months ended September 30, 2023, was $36,842 thousand, a decline of 30.5% from $53,033 thousand in the same period of 2022[11]. - Basic earnings per common share for the three months ended September 30, 2023, was $0.58, down from $0.85 in the same period of 2022, a decrease of 31.8%[11]. - Net income available to common shareholders for the three months ended September 30, 2023, was $34.3 million, a decrease of 32% from $50.5 million in the same period of 2022[40]. - For the nine months ended September 30, 2023, net income was $116.5 million or $1.96 per diluted share, compared to $132.3 million or $2.19 per diluted share for the same period in 2022[143]. - The total comprehensive loss for the nine months ended September 30, 2023, was $297.906 million, compared to a loss of $266.640 million for the same period in 2022[128]. Asset and Deposit Changes - Total assets increased to $17,344,377 thousand as of September 30, 2023, compared to $16,931,905 thousand at December 31, 2022, reflecting a growth of 2.4%[9]. - Total deposits decreased slightly to $13,090,228 thousand as of September 30, 2023, from $13,131,090 thousand at December 31, 2022, a decrease of 0.3%[9]. - Cash, cash equivalents, and restricted cash at the end of the period stood at $495,082,000, up from $378,556,000 in 2022[18]. - The total amount of unfunded commercial loan commitments was $13.8 million as of September 30, 2023, down from $25.0 million as of December 31, 2022, a decrease of approximately 44.0%[67]. Loan and Credit Quality - The recorded investment in total loans increased to $11,333,550,000 at September 30, 2023, from $10,710,977,000 at December 31, 2022, representing a growth of approximately 5.8%[55]. - The total portfolio loans, including loans held for sale, reached $11,315,873,000 at September 30, 2023, compared to $10,702,728,000 at December 31, 2022, marking a significant increase[55]. - Non-performing loans decreased to 0.26% of total portfolio loans as of September 30, 2023, down from 0.32% at the end of Q3 2022[160]. - The total allowance for credit losses for loans and loan commitments at September 30, 2023, is $136.344 million, a decrease from $126.158 million at December 31, 2022[58]. - The provision for credit losses was $6.3 million in Q3 2023, compared to a negative provision of $0.5 million in Q3 2022[146]. Income and Expense Trends - Net interest income after provision for credit losses for the three months ended September 30, 2023, was $111,355 thousand, down from $125,036 thousand in the same period of 2022, a decrease of 10.9%[11]. - Total non-interest expense for the three months ended September 30, 2023, was $97,939 thousand, an increase of 6.5% from $91,941 thousand in the same period of 2022[11]. - Non-interest income decreased by $1.4 million or 4.3% in Q3 2023 compared to Q3 2022, largely due to a prior year's gain on the sale of equity investments[147]. - Non-interest expense increased by $6.0 million or 6.5% in Q3 2023 compared to Q3 2022, primarily due to increases in salaries and wages, employee benefits, equipment and software expenses, and FDIC insurance expenses[170]. Securities and Investments - Total available-for-sale debt securities amounted to $2.6 billion as of September 30, 2023, with unrealized losses of $392.9 million[44]. - The fair value of available-for-sale debt securities decreased from $2,529,140,000 on December 31, 2022, to $2,196,141,000 by September 30, 2023[117]. - The total gross unrealized securities losses increased by $94.3 million from $510.7 million at December 31, 2022, to $605.0 million at September 30, 2023[181]. - The total amount of commercial and industrial loans classified as "Pass" was $281.5 million in 2022, up from $189.2 million in 2021, reflecting a growth of 48.8%[86]. Derivatives and Interest Rate Swaps - Wesbanco had 210 customer interest rate swaps and caps with an aggregate notional amount of $1.4 billion as of September 30, 2023, up from 159 swaps with $0.9 billion in the previous year[89]. - Income from swap and cap fees for the three months ended September 30, 2023, was $2.5 million, an increase from $1.6 million in the same period of 2022[89]. - Wesbanco's total derivatives had a fair value of $97.424 million in assets and $95.644 million in liabilities, compared to $75.893 million in assets and $74.726 million in liabilities as of December 31, 2022[93]. Regulatory and Compliance - The company has adopted ASU 2022-02, which eliminates the accounting guidance for Troubled Debt Restructurings, effective January 1, 2023, impacting how loan modifications are reported[22]. - The allowance for credit losses methodology incorporates macroeconomic factors, with national unemployment projected to be 4.3% at quarter-end, expected to rise to an average of 4.7% over the forecast period[56].

Financial Performance - Net interest income for the three months ended June 30, 2023, was $121,567 thousand, up 8.3% from $112,228 thousand in the same period of 2022 [11]. - Net income for the six months ended June 30, 2023, was $87,221 thousand, slightly increasing from $86,870 thousand in the same period of 2022 [11]. - Earnings per common share for the three months ended June 30, 2023, was $0.71, an increase from $0.67 in the same period of 2022 [11]. - Comprehensive income for the six months ended June 30, 2023, was $85,010 thousand, compared to a loss of $84,071 thousand in the same period of 2022 [13]. - For the three months ended June 30, 2023, net income was $44.88 million, compared to $42.75 million for the same period in 2022, representing a year-over-year increase of 5.0% [14]. - Net income available to common shareholders for the three months ended June 30, 2023, was $42,349 thousand, an increase from $40,217 thousand in 2022, representing a growth of 5.3% [35]. - Net income available to common shareholders for Q2 2023 was $42.3 million, with diluted earnings per share of $0.71, compared to $40.2 million or $0.67 per diluted share in Q2 2022, representing a 5.2% increase in net income [134]. Asset and Deposit Changes - Total assets increased to $17,356,954 thousand as of June 30, 2023, compared to $16,931,905 thousand at December 31, 2022, reflecting a growth of 2.5% [10]. - Total deposits decreased to $12,861,434 thousand as of June 30, 2023, from $13,131,090 thousand at December 31, 2022, a decline of 2.1% [10]. - Total shareholders' equity decreased to $2.46 billion as of June 30, 2023, down from $2.55 billion at the end of March 2022, indicating a decline of approximately 3.2% [14]. - Total available-for-sale debt securities as of June 30, 2023, amounted to $2,329,222 thousand, down from $2,529,140 thousand as of December 31, 2022, indicating a decrease of 7.9% [39]. - Total liabilities measured at fair value remained stable at $77,458,000 as of June 30, 2023, consistent with the previous period [106]. Income and Expense Analysis - Total non-interest income rose to $31,841 thousand for the three months ended June 30, 2023, compared to $26,983 thousand in the same period of 2022, marking a growth of 18.5% [11]. - Non-interest expense, excluding restructuring and merger-related expenses, increased by $9.4 million or 10.8% to $96.4 million in Q2 2023 compared to Q2 2022 [139]. - Interest expense increased by $48.3 million in Q2 2023 compared to Q2 2022, reflecting the impact of federal funds rate increases [144]. - The provision for credit losses was $3,028 thousand for the three months ended June 30, 2023, compared to a reversal of $812 thousand in the same period of 2022 [11]. - The provision for loan losses for the six months ended June 30, 2023, is $4.876 million, compared to a provision of $(4.190) million for the same period in 2022, indicating a significant increase in provisions [52]. Loan and Credit Quality - The total recorded investment in loans increased to $11,158,934,000 at June 30, 2023, from $10,710,977,000 at December 31, 2022, representing a growth of approximately 4.2% [50]. - Non-performing loans decreased to 0.28% of total portfolio loans as of June 30, 2023, down from 0.35% in the previous year, showing improved loan quality [151]. - The allowance for credit losses on loans decreased to $120.166 million as of June 30, 2023, from $117.790 million at the end of 2022 [52]. - The total allowance for credit losses for loans and loan commitments as of June 30, 2023, is $130.29 million, a decrease from $126.16 million at the end of 2022 [52]. - Criticized and classified loans decreased to 1.68% of total portfolio loans as of June 30, 2023, down from 3.14% in the previous year, indicating improved risk ratings [151]. Capital and Regulatory Compliance - Shareholders' equity increased by $38.3 million or 1.6% to $2.5 billion at June 30, 2023, driven by net income of $87.2 million [205]. - Regulatory capital levels for Wesbanco were substantially above the minimum required to be considered "well capitalized" as of June 30, 2023 [207]. - Tier 1 capital to risk-weighted assets ratio was 12.12% for Wesbanco, compared to 12.33% at December 31, 2022 [209]. - Total capital to risk-weighted assets ratio was 14.83% for Wesbanco, down from 15.11% at December 31, 2022 [209]. Market and Economic Factors - Average deposits decreased by 6.1% over the same period due to interest rate and inflationary pressures [136]. - The company operates through 194 branches and 183 ATM machines across multiple states, significantly impacted by economic factors such as market interest rates and regional economic conditions [132]. - The effective tax rate for the first half of 2023 was 17.9%, down from 18.8% in the same period of 2022 [140].

Financial Performance - Net income available to common shareholders decreased to $39,810 thousand for Q1 2023, down 4.3% from $41,593 thousand in Q1 2022[13]. - Comprehensive income for Q1 2023 was $70,358 thousand, compared to a comprehensive loss of $62,068 thousand in Q1 2022[15]. - Net income for the three months ended March 31, 2023, was $42,341,000, compared to $44,124,000 for the same period in 2022, reflecting a decrease of 4.05%[16]. - Net income available to common shareholders for Q1 2023 was $39.8 million, with diluted earnings per share of $0.67, compared to $41.6 million or $0.68 per diluted share in Q1 2022[133]. - The effective tax rate for Q1 2023 was 19.0%, up from 18.3% in Q1 2022, attributed to lower bank-owned life insurance income[138]. Income and Revenue - Net interest income for the three months ended March 31, 2023, was $124,332 thousand, an increase of 15.4% compared to $107,711 thousand for the same period in 2022[13]. - Total interest and dividend income rose to $160,555 thousand, up 43% from $112,174 thousand year-over-year[13]. - Non-interest income for Q1 2023 was $27,653 thousand, a decline of 8.5% from $30,382 thousand in Q1 2022[13]. - Non-interest income decreased by $2.7 million or 9.0% in Q1 2023, mainly due to lower bank-owned life insurance and mortgage banking income[136]. - Trust fees decreased by $0.3 million or 4.4% compared to Q1 2022, with total trust assets at $5.0 billion as of March 31, 2023[152]. Assets and Liabilities - Total assets increased to $17,274,626 thousand as of March 31, 2023, up from $16,931,905 thousand at December 31, 2022, representing a growth of 2.02%[11]. - Total deposits decreased to $12,873,196 thousand as of March 31, 2023, down 1.96% from $13,131,090 thousand at the end of 2022[11]. - Total shareholders' equity as of March 31, 2023, was $2,475,457,000, down from $2,693,166,000 as of December 31, 2021, representing a decrease of 8.09%[16]. - The total balance of forward TBA contracts increased to $40.0 million as of March 31, 2023, from $14.5 million at December 31, 2022[81]. - The fair value of total assets measured on a recurring basis as of March 31, 2023, was $2,556,350,000, a decrease from $2,624,735,000 as of December 31, 2022[105]. Credit Losses and Provisions - The provision for credit losses was $3,577 thousand for Q1 2023, compared to a reversal of $3,438 thousand in Q1 2022, indicating a shift in credit quality assessment[13]. - The allowance for credit losses on loans increased slightly to $118,698 thousand as of March 31, 2023, from $117,790 thousand at December 31, 2022[11]. - The total allowance for credit losses on loans and loan commitments as of March 31, 2023, is $127.825 million, a decrease from $126.158 million at the end of 2022[52]. - The provision for loan losses for the three months ended March 31, 2023, is $2.827 million, compared to a provision of $3.730 million for the same period in 2022, indicating a year-over-year decrease[52]. - The total provision for credit losses, including loans and loan commitments, was reported as $3.586 million for the first quarter of 2023, down from $3.455 million in the same quarter of the previous year[52]. Loans and Commitments - Total loans as of March 31, 2023, amounted to $10,901,410, a slight increase from $10,710,977 at the end of 2022[50]. - The commercial real estate loan portfolio increased to $6,197,844 as of March 31, 2023, compared to $6,061,344 at December 31, 2022[50]. - Total commitments to extend credit as of March 31, 2023, were $4.9 billion, up from $4.6 billion as of December 31, 2022[124]. - The total amount of unfunded commercial loan commitments was $30.3 million as of March 31, 2023, compared to $25.0 million as of December 31, 2022, indicating an increase of 21.2%[60]. - The total portfolio loans amounted to $10,888,688 thousand as of March 31, 2023, up from $10,702,728 thousand as of December 31, 2022, indicating a growth of 1.74%[53]. Dividends and Shareholder Returns - The company declared a dividend of $0.35 per common share for Q1 2023, up from $0.34 in the same quarter of 2022[13]. - Common dividends declared in Q1 2023 were $20,561,000, with a dividend per share of $0.35, compared to $20,538,000 and $0.34 per share in Q1 2022[16]. - The quarterly dividend rate was increased by $0.01 to $0.35 per share, representing a cumulative increase of 150% since 2010[203]. Market and Economic Conditions - The transition plan for replacing LIBOR with the One Month Term Secured Overnight Financing Rate (1M Term SOFR) has been implemented, with no material impacts expected on the consolidated financial statements[33]. - Credit risk is managed through initial underwriting and ongoing monitoring, with a focus on minimizing the impact of defaults[179]. - The average cost of maturing FHLB advances was 4.72% compared to 4.96% for new borrowings during the first three months of 2023[200]. Operational Metrics - Wesbanco operates 194 branches and 185 ATM machines across multiple states, indicating a significant regional presence in the banking sector[131]. - The net loans to assets ratio was 62.3% at March 31, 2023, with deposit balances funding 74.5% of assets[209]. - The average line utilization percentage for the commercial portfolio was 32.6% for the three months ended March 31, 2023, compared to 34.7% for the previous quarter[184].

Financial Performance - Net income available to common shareholders decreased by $50.1 million or 22.6% to $182.0 million in 2022 compared to 2021[200]. - Net interest income increased by $16.4 million or 3.6% from 2021, primarily due to loan growth and a rising rate environment[200]. - Non-interest income decreased by $15.4 million or 11.6% in 2022, primarily due to a $14.4 million decrease in mortgage banking income[200]. - Total shareholders' equity decreased to $2,426,662, down from $2,693,166 in 2021, representing a decline of 9.9%[210]. - Net income available to common shareholders was $181,988 in 2022, down 21.5% from $232,135 in 2021[210]. - Earnings per common share—diluted decreased to $3.02 in 2022 from $3.53 in 2021[205]. - Return on average tangible equity decreased to 13.78% in 2022 from 14.89% in 2021, a decline of 1.11 percentage points[210]. - Tangible book value per share at year-end was $19.43, down from $22.61 in 2021, a decrease of 9.7%[210]. - Efficiency ratio increased to 59.53% in 2022 from 58.22% in 2021, indicating a decline in operational efficiency[210]. - Average total assets remained relatively stable at $16,879,541 in 2022 compared to $16,928,377 in 2021[212]. Capital and Ratios - As of December 31, 2022, Wesbanco's Common Equity Tier 1 (CET1) ratio was 11.20%, Tier 1 capital ratio was 12.33%, and total capital ratio was 15.11%, all exceeding minimum requirements[61]. - Tier I risk-based capital ratio was 12.33% and total risk-based capital was 15.11% as of December 31, 2022, both well above regulatory standards[202]. - Wesbanco's leverage ratio was 9.90% as of December 31, 2022, indicating strong capital adequacy[61]. - The allowance for credit losses - loans to total loans ratio was 1.10% in 2022, down from 1.25% in 2021[205]. - Tangible common equity to tangible assets ratio fell to 7.28% in 2022 from 8.92% in 2021, a decrease of 1.64 percentage points[210]. Assets and Liabilities - As of December 31, 2022, Wesbanco's total assets were approximately $16.9 billion, with a market value of assets under management in the trust and investment services segment at approximately $4.9 billion[14]. - Total portfolio loans increased by $1.0 billion or 10.0% year-over-year, reaching $10.7 billion as of December 31, 2022[201]. - As of December 31, 2022, approximately 20% of Wesbanco's loan portfolio was comprised of residential real estate loans, and 57% was comprised of commercial real estate loans[121]. - Wesbanco had $133.5 million in junior subordinated debt as of December 31, 2022, with Trust Preferred Securities totaling $130.0 million previously included in Tier 1 capital[110]. Employee and Workforce - Wesbanco employed 2,426 full-time equivalent employees as of December 31, 2022, with an average tenure of approximately 10 years for all employees and over 16 years for executive officers[27]. - The turnover rate for Wesbanco in 2022 was 18.98%, while the turnover rate for officers was significantly lower at 9.13%[28]. - The company has a diverse workforce, with 9.6% of employees being minorities and 53.6% of total officers being women[28]. Community Engagement and Philanthropy - Wesbanco made over $1.2 million in philanthropic donations in support of communities across its footprint during the past year[33]. - Wesbanco originated over $1.9 billion in community development loans in the past five years, supporting local communities[97]. - The Wesbanco Bank Community Development Corporation has made over 219 loans totaling over $167 million, creating over 6,200 jobs in distressed communities[96]. - Wesbanco received an "Outstanding" CRA rating from the FDIC for community development performance for the period of October 2016 through July 2019[95]. Regulatory Environment - Wesbanco is subject to enhanced prudential supervision due to exceeding the $10 billion asset threshold, requiring compliance with additional regulations[36]. - The company is classified as a large bank due to total assets exceeding $10 billion, subjecting it to more continuous oversight by the FDIC[52]. - Wesbanco is subject to the Durbin Amendment, which caps debit card interchange fees at $0.21 plus an additional 0.05% of the transaction value, affecting its interchange income since it has assets exceeding $10 billion[77]. - The Dodd-Frank Act requires annual company-run stress tests for bank holding companies with total consolidated assets greater than $100 billion, but Wesbanco is not subject to these rules as it has less than $100 billion in average total consolidated assets[78]. - The Volcker Rule limits Wesbanco's ability to engage in proprietary trading and invest in hedge funds, with compliance requirements adjusted for its trading asset levels[72]. Market and Competition - The company faces intense competition from various financial institutions, including local, regional, and national banks, which may impact its market share and profit potential[34]. - The company operates in a highly competitive banking environment, facing competition from various financial institutions, including major national banks and fintech companies, which could impact customer retention and growth[133]. Risk Factors - Economic downturns in Wesbanco's primary markets could negatively impact earnings and the ability of customers to repay loans, potentially leading to higher charge-offs and increased allowance for credit losses[107]. - Changes in federal policies and regulations could adversely affect Wesbanco's business operations and financial condition, including potential increases in operational costs and limitations on financial services[108]. - Severe weather, natural disasters, and other external events could significantly impair Wesbanco's ability to conduct business and affect its deposit base and loan repayment capabilities[112]. - A high percentage of Wesbanco's loan portfolio is concentrated in economically vulnerable regions, making it more susceptible to local economic downturns compared to more diversified institutions[121]. - Inflation could significantly affect interest rates and financial performance, with Wesbanco monitoring interest-rate sensitive assets and liabilities to mitigate impacts[120]. Shareholder Information - Wesbanco's total shareholder return was 109.86 as of December 31, 2022, compared to 100.00 at the end of 2017, indicating a growth of approximately 9.86% over the five-year period[176]. - The Russell 2000 Index and S&P Regional Banks Select Industry Index had total shareholder returns of 122.41 and 114.88, respectively, as of December 31, 2022[176]. - The ability to pay dividends on common stock is limited by the outstanding Series A Preferred Stock, which requires full dividends to be paid before any common stock dividends can be declared[156]. - Dividends declared per common share increased to $1.37 in 2022 from $1.32 in 2021, an increase of 3.8%[212]. Technological and Operational Developments - Wesbanco's future success depends on its ability to keep pace with technological changes and customer demands, having completed a core banking software conversion in 2021[155]. - The company has implemented an enterprise risk management framework to manage various risk exposures, including credit, operational, and reputational risks[148]. - Wesbanco's reliance on third-party vendors for processing transactions poses risks, as any failure in their systems could disrupt business operations[153].