WesBanco(US:WSBC)2023-05-04 16:13Financial Performance - Total interest and dividend income for Q1 2023 was $160,555,000, a 43% increase from $112,174,000 in Q1 2022[11] - Net interest income after provision for credit losses was $120,755,000 in Q1 2023, compared to $111,149,000 in Q1 2022, reflecting an increase of 8.5%[11] - Non-interest income decreased to $27,653,000 in Q1 2023 from $30,382,000 in Q1 2022, a decline of 8.9%[11] - Total non-interest expense increased to $96,125,000 in Q1 2023, up from $87,548,000 in Q1 2022, representing a rise of 9.1%[11] - Net income for Q1 2023 was $42,341,000, down from $44,124,000 in Q1 2022, a decrease of 4.0%[11] - Earnings per common share for Q1 2023 was $0.67, unchanged from Q1 2022[11] - Comprehensive income for Q1 2023 was $70,358,000, compared to a comprehensive loss of $62,068,000 in Q1 2022[13] - The company declared dividends of $0.35 per common share in Q1 2023, up from $0.34 in Q1 2022[11] Cash Flow and Investments - Net cash provided by operating activities decreased to $10,891,000 in Q1 2023 from $47,741,000 in Q1 2022, representing a decline of approximately 77.2%[16] - Net cash used in investing activities was $91,874,000 in Q1 2023, compared to $181,387,000 in Q1 2022, indicating a reduction of about 49.3%[16] - Net cash provided by financing activities increased to $270,075,000 in Q1 2023 from $251,786,000 in Q1 2022, reflecting an increase of approximately 7.3%[16] Shareholder Information - The average common shares outstanding decreased from 61,445,399 in Q1 2022 to 59,217,711 in Q1 2023[11] - Net income available to common shareholders was $39,810,000 in Q1 2023, down from $41,593,000 in Q1 2022, a decrease of approximately 4.3%[33] - Earnings per common share (basic and diluted) remained stable at $0.67 in Q1 2023, compared to $0.68 in Q1 2022, showing a slight decline of 1.5%[33] Credit Losses and Provisions - The provision for credit losses was $3,577,000 in Q1 2023, compared to a reversal of $3,438,000 in Q1 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[50] - The provision for loan losses for the three months ended March 31, 2023, was a net charge of $2.827 million, compared to a provision of $3.586 million in the previous year[50] - The total charge-offs for the period were $3.319 million, while recoveries amounted to $1.400 million, resulting in net charge-offs of $1.919 million[50] Securities and Investments - The total available-for-sale debt securities amounted to $2.77 billion with a fair value of $2.47 billion as of March 31, 2023, showing a decrease in unrealized losses from $345.9 million to $309.2 million[37] - The total held-to-maturity debt securities were valued at $1.24 billion with a fair value of $1.11 billion as of March 31, 2023, reflecting a decrease in unrealized losses from $164.8 million to $132.9 million[40] - The total debt securities reached $4.01 billion with a fair value of $3.57 billion, indicating total unrealized losses of $442.17 million[41] - Proceeds from the sale of available-for-sale securities for the three months ended March 31, 2023, totaled $20.5 million, compared to $0 million for the same period in 2022[41] Loan Portfolio - The fair value of total loans as of March 31, 2023, was $10.9 billion, an increase from $10.7 billion as of December 31, 2022[48] - The total commercial real estate loans increased to $6.2 billion as of March 31, 2023, compared to $6.1 billion at the end of 2022[48] - The recorded investment in residential real estate loans rose to $2.3 billion as of March 31, 2023, up from $2.1 billion at December 31, 2022[48] - The total portfolio loans amounted to $10.888688 billion as of March 31, 2023, up from $10.702728 billion as of December 31, 2022, indicating a growth of approximately 1.73%[51] Risk Management and Derivatives - The company has transitioned away from LIBOR, adopting the One Month Term Secured Overnight Financing Rate (1M Term SOFR) as its alternative replacement rate, reflecting proactive risk management in interest rate exposure[31] - The total amount of interest rate swaps and caps with commercial banking customers reached an aggregate notional amount of $1.1 billion as of March 31, 2023, up from $0.9 billion at December 31, 2022[78] - Wesbanco recognized income of $1.8 million from swap and cap fees for the three months ended March 31, 2023, compared to $0.2 million for the same period in 2022, indicating a significant increase[78] Other Financial Metrics - The total commitments to extend credit as of March 31, 2023, amounted to $4.93 billion, an increase from $4.62 billion at December 31, 2022, with lines of credit rising to $3.94 billion from $3.81 billion[124] - For the three months ended March 31, 2023, total trust fees were $7,494,000, a decrease from $7,835,000 in the same period of 2022, representing a decline of approximately 4.4%[117] - The total service charges on deposits for the same period were $6,170,000, slightly up from $6,090,000 in 2022, indicating a growth of about 1.3%[117]