WesBanco(US:WSBC)2023-11-02 20:08Financial Performance - For the three months ended September 30, 2023, total interest and dividend income increased to $183.589 million, up 37% from $134.117 million in the same period of 2022[11]. - Net income for the three months ended September 30, 2023, was $36.842 million, a decrease of 30.5% compared to $53.033 million in the same period of 2022[12]. - Total non-interest income for the nine months ended September 30, 2023, was $90.372 million, slightly up from $89.622 million in the same period of 2022[11]. - Basic earnings per common share for the nine months ended September 30, 2023, was $1.96, down from $2.19 in the same period of 2022[11]. - Net income available to common shareholders for Q3 2023 was $34,311,000, down from $50,502,000 in Q3 2022, representing a decrease of 32%[38]. - Basic earnings per common share for Q3 2023 was $0.58, compared to $0.85 for Q3 2022, reflecting a decline of 31.8%[38]. Expenses and Losses - Total non-interest expense for the nine months ended September 30, 2023, increased to $290.498 million, up from $266.511 million in the same period of 2022[11]. - The provision for credit losses for the nine months ended September 30, 2023, was $12.932 million, compared to a reversal of $4.785 million in the same period of 2022[11]. - The provision for loan losses for the nine months ended September 30, 2023, is $11.612 million, while the provision for loan commitments is $1.361 million, totaling $12.973 million[56]. - The net charge-offs for the nine months ended September 30, 2023, amount to $2.787 million, indicating a decrease in recoveries compared to previous periods[56]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2023, was $121.956 million, down from $196.674 million for the same period in 2022[16]. - The net cash used in investing activities for the nine months ended September 30, 2023, was $311.934 million, compared to $775.142 million for the same period in 2022[16]. - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2023, were $495.082 million, an increase from $378.556 million at the end of the same period in 2022[16]. Shareholder Equity and Dividends - Total shareholders' equity as of September 30, 2023, was $2,447.941 million, slightly up from $2,464.998 million as of June 30, 2023[13]. - The company declared dividends of $0.35 per common share for the three months ended September 30, 2023, compared to $0.34 in the same period of 2022[11]. - Total dividends paid to common shareholders were $61,703 thousand, slightly up from $61,292 thousand in the previous year, indicating a year-over-year increase of about 0.7%[16]. Loan Portfolio and Credit Quality - The total loans amounted to $11,333.6 million, an increase from $10,710.9 million at December 31, 2022, reflecting a growth of approximately 5.8%[53]. - The total allowance for credit losses on loans and loan commitments as of September 30, 2023, is $136.344 million, compared to $126.158 million at the beginning of the year, reflecting an increase of approximately 8.4%[56]. - The amount of loans classified as "Pass" totaled $7.723 billion as of September 30, 2023, a decrease from $7.390 billion as of December 31, 2022, reflecting a decline of approximately 5.0%[65]. - Criticized loans, categorized as compromised, totaled $180.136 million as of September 30, 2023, compared to $147.945 million as of December 31, 2022, marking an increase of about 21.8%[65]. Securities and Unrealized Losses - The total available-for-sale debt securities amounted to $2.6 billion as of September 30, 2023, with unrealized losses of $392.9 million[42]. - The total held-to-maturity debt securities were valued at $1.2 billion, with unrealized losses of $212.1 million as of September 30, 2023[42]. - The net change in unrealized losses on debt securities available-for-sale for the three months ended September 30, 2023, was $(44.112) million, compared to $(119.299) million in the same period of 2022[12]. Accounting Standards and Regulatory Changes - The adoption of ASU 2022-02 on January 1, 2023, eliminated the accounting guidance for Troubled Debt Restructurings (TDRs), impacting how loan modifications are reported[34]. - The FASB's ASU 2023-06 on disclosure improvements is effective from October 2023, but is not expected to materially impact the Consolidated Financial Statements[25]. - The company has transitioned away from LIBOR, adopting the One Month Term Secured Overnight Financing Rate (1M Term SOFR) as its alternative replacement rate[37].