WesBanco(US:WSBC)2021-05-06 20:17Financial Performance - Net income for the three months ended March 31, 2021, was $73,115 thousand, compared to $23,396 thousand for the same period in 2020, reflecting a significant increase of 212.4%[9] - Earnings per common share for Q1 2021 was $1.05, compared to $0.35 for Q1 2020, representing a growth of 200%[9] - Net income available to common shareholders rose to $70,584,000 for the three months ended March 31, 2021, compared to $23,396,000 in the same period of 2020, marking a 201.4% increase[18] - Net interest income after provision for credit losses was $144,436 thousand for Q1 2021, compared to $90,341 thousand in Q1 2020, marking an increase of 60.0%[9] - Non-interest income totaled $33,208 thousand for the three months ended March 31, 2021, up from $28,009 thousand in the same period of 2020, a growth of 18.0%[9] Asset and Deposit Growth - Total assets increased to $17,057,788 thousand as of March 31, 2021, up from $16,425,610 thousand at December 31, 2020, representing a growth of 3.85%[8] - Total deposits rose to $13,286,999 thousand as of March 31, 2021, an increase of 6.91% from $12,429,373 thousand at December 31, 2020[8] - Total shareholders' equity increased to $2,785,522 thousand as of March 31, 2021, compared to $2,756,737 thousand at December 31, 2020, reflecting a growth of 1.04%[8] - Total cash, cash equivalents, and restricted cash at the end of the period was $759,048,000, up from $593,872,000 at the end of the same period in 2020, showing a 27.8% increase[12] Credit Quality and Provisions - The allowance for credit losses on loans decreased to $160,040 thousand as of March 31, 2021, down from $185,827 thousand at December 31, 2020, indicating improved credit quality[8] - The provision for credit losses for the three months ended March 31, 2021, was $(27,922), compared to $(25,139) for the same period in 2020, indicating a decrease in provisions[32] - The allowance for credit losses at March 31, 2021, was $166,771, reflecting an increase from $195,341 at December 31, 2020[32] - The net charge-offs for the three months ended March 31, 2021, were $(648), compared to $(1,105) for the same period in 2020, indicating improved credit quality[32] Loan Portfolio - Total portfolio loans as of March 31, 2021, amounted to $10,703,312, a decrease of 0.8% from $10,789,233 as of December 31, 2020[30] - The total amount of residential real estate, home equity, and consumer loans classified as substandard was $29.4 million as of March 31, 2021, up from $27.7 million as of December 31, 2020[41] - The total amount of unfunded commercial loan commitments was $28.3 million as of March 31, 2021, compared to $28.7 million as of December 31, 2020[41] - The company originated $1.2 billion in PPP loans during the last twelve months, with $823.8 million remaining in the portfolio as of March 31, 2021[174][177] Non-Interest Expenses - Total non-interest expense decreased to $86,327 thousand in Q1 2021 from $91,333 thousand in Q1 2020, a reduction of 5.5%[9] - Non-interest expense decreased by $0.7 million or 0.8% in Q1 2021, primarily due to a 5.2% reduction in salaries and wages[124] - Marketing expenses increased by $1.2 million or 109.5% compared to Q1 2020, reflecting increased advertising efforts[147] - Restructuring and merger-related expenses in Q1 2021 totaled $0.9 million, a decrease of $4.3 million from Q1 2020, which had expenses of $5.2 million related to the OLBK acquisition[149] Tax and Regulatory - The effective tax rate for Q1 2021 was 19.9%, up from 13.4% in Q1 2020, with the provision for income taxes increasing to $18.2 million[125] - The company expects a minimum required contribution of $5.2 million to the Defined Benefit Pension Plan for 2021[69] Market and Economic Conditions - The projected national unemployment rate is expected to peak at 5.8% in Q2 2021, then decrease to an average of 4.8% for the remainder of the forecast period[30] - The company continuously monitors delinquency levels and economic conditions to manage credit risk effectively[169] Investment and Securities - Total available-for-sale debt securities increased to $2,775,212,000 as of March 31, 2021, from $1,978,136,000 as of December 31, 2020, reflecting a 40.3% increase[20] - The fair value of Wesbanco's total available-for-sale debt securities was $2,775,212 thousand as of March 31, 2021[81] - The fair value of available-for-sale debt securities increased to $2,775,212,000 by March 31, 2021, compared to $1,978,136,000 at the end of 2020[85] Trust and Investment Services - Total trust fees increased to $7,631,000 in Q1 2021 from $6,952,000 in Q1 2020, representing an increase of 9.8%[102] - The market value of assets managed or held in custody by the trust and investment services segment reached approximately $5.2 billion in Q1 2021, up from $4.1 billion in Q1 2020, indicating a growth of 26.8%[111]