WesBanco(US:WSBC)2024-05-02 20:19Financial Performance - Net income for the three months ended March 31, 2024, was $35,693 thousand, a decrease of 15.6% from $42,341 thousand in the same period of 2023[11]. - Basic earnings per common share decreased to $0.56, down from $0.67 in the prior year, reflecting a decline of 16.4%[11]. - 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]. - Total comprehensive income for Q1 2024 was $27.464 million, down from a comprehensive loss of $(70.358) million in Q1 2023[14]. - The effective tax rate for Q1 2024 was 17.7%, down from 19.0% in Q1 2023, with a decrease in the provision for income taxes by $2.2 million[142]. Income and Revenue - Total interest and dividend income rose to $195,333 thousand, up 21.7% from $160,555 thousand year-over-year[11]. - Total non-interest income increased to $30,629 thousand, a rise of 10.7% compared to $27,653 thousand in the previous year[11]. - Non-interest income rose by $3.0 million or 10.8% year-over-year, attributed to increases in net swap fee and valuation income, service charges on deposits, and trust fees[140]. - Trust fees increased by $0.588 million or 7.8% to $8.082 million, driven by growth in trust assets to $5.6 billion as of March 31, 2024[155]. - Digital banking income for the three months ended March 31, 2024, was $4.7 million, compared to $4.6 million in the same period of 2023, indicating a slight increase[121]. 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, up from $15,179,312 thousand at the end of 2023, marking a growth of 0.36%[9]. - The total shareholders' equity increased to $2.538 billion as of March 31, 2024, from $2.426 billion as of December 31, 2022[14]. - The carrying amount of cash and due from banks was $509,669,000 as of March 31, 2024, reflecting a decrease from $595,383,000 as of December 31, 2023[110]. - Total deposits grew to $13,496,773 thousand, an increase of 2.5% from $13,168,704 thousand at the end of 2023[9]. Loans and Credit Quality - The total portfolio loans increased to $11.87 billion as of March 31, 2024, up from $11.64 billion at December 31, 2023, representing a growth of about 2%[50]. - The net charge-offs recorded during the first quarter of 2024 amounted to $5.9 million, reflecting the impact of macroeconomic factors on credit quality[51]. - The total allowance for credit losses on loans and loan commitments increased to $137,365 thousand as of March 31, 2024, compared to $126,158 thousand at December 31, 2022, reflecting a growth of approximately 8.5%[53]. - Non-performing loans decreased to 0.28% of total portfolio loans as of March 31, 2024, down from 0.36% a year earlier[152]. - The total beginning allowance for credit losses on loans and loan commitments was $139,279 thousand at December 31, 2023, compared to $126,158 thousand at December 31, 2022, showing an increase of approximately 10.4%[53]. Investment and Securities - Total available-for-sale debt securities amounted to $2.119 billion as of March 31, 2024, with unrealized losses of $318.581 million[38]. - The total gross unrealized securities losses increased by $18.2 million to $456.5 million as of March 31, 2024, due to rising market rates[170]. - The fair value of U.S. Government sponsored entities and agencies securities was $201.71 million with unrealized losses of $32.998 million as of March 31, 2024[47]. - The total fair value of financial liabilities, including deposits, was $13,496,773,000 as of March 31, 2024[110]. - The total available-for-sale debt securities as of March 31, 2024, were valued at $2,119,272,000, showing a decrease from $2,194,329,000 as of December 31, 2023[110]. Expenses and Cost Management - Non-interest expense, excluding restructuring and merger-related expenses, increased by $4.2 million or 4.5% to $97.2 million, reflecting higher salaries and operating expenses[141]. - Total non-interest expense increased by $1.1 million or 1.1% in Q1 2024, driven by a $1.0 million increase in salaries and wages and a $1.8 million increase in professional fees[161]. - Interest expense increased by $45.1 million in Q1 2024, with the cost of interest-bearing liabilities rising by 146 basis points to 2.98%[146]. - The provision for credit losses increased to $4.0 million in Q1 2024 from $3.6 million in Q1 2023, reflecting continued loan growth and macroeconomic adjustments[152]. - The net periodic pension income for Wesbanco's Defined Benefit Pension Plan was a loss of $654,000 for the three months ended March 31, 2024, compared to a loss of $632,000 for the same period in 2023[94]. Market and Economic Conditions - The primary macroeconomic drivers for the allowance for credit losses included a projected national unemployment rate of 4.3% at quarter-end, expected to rise to 4.7% over the forecast period[51]. - The risk of default is managed through ongoing monitoring and administration of the portfolio, with credit policies establishing standard underwriting guidelines[178]. - The aging analysis indicates that as of March 31, 2024, there were 453 loans past due for 30-59 days across various categories[73]. - The common equity Tier 1 capital ratio was 10.84% as of March 31, 2024, compared to 10.99% at December 31, 2023, indicating a slight decrease in capital adequacy[205]. - The allowance for credit losses on loans was $137.4 million as of March 31, 2024, representing 1.09% of total portfolio loans, down from 1.12% as of December 31, 2023[191].