WesBanco(US:WSBC)2021-08-05 20:20Financial Performance - Net income available to common shareholders reached $68,057 thousand for the three months ended June 30, 2021, compared to $4,488 thousand in the prior year, marking a substantial increase[9]. - For the six months ended June 30, 2021, net income available to common shareholders was $138,641,000, up from $27,884,000 in the same period of 2020[20]. - For the three months ended June 30, 2021, Wesbanco reported net income available to common shareholders of $68,057,000, compared to $4,488,000 for the same period in 2020, representing a significant increase[20]. - Net income was $70,588 thousand, compared to $4,488 thousand for the same period in 2020, representing a significant increase[10]. - The company declared dividends of $0.33 per common share for the three months ended June 30, 2021, compared to $0.32 in the same period of 2020[9]. Asset Growth - Total assets increased to $16,966,867 thousand as of June 30, 2021, compared to $16,425,610 thousand at December 31, 2020, reflecting a growth of 3.3%[8]. - Total deposits rose to $13,318,255 thousand as of June 30, 2021, up from $12,429,373 thousand at the end of 2020, indicating a growth of 7.1%[8]. - Total securities increased to $3,879,703 thousand as of June 30, 2021, from $2,722,069 thousand at December 31, 2020, reflecting a growth of 42.5%[8]. - Total assets increased to $17,042,147 thousand as of June 30, 2021, compared to $16,715,211 thousand in 2020, reflecting a growth of 1.95%[138]. Income and Expenses - Net interest income after provision for credit losses was $136,880 thousand for the three months ended June 30, 2021, significantly up from $57,172 thousand in the same period of 2020[9]. - Non-interest income for the three months ended June 30, 2021, was $36.1 million, compared to $32.9 million in the same period of 2020[119]. - Non-interest expense decreased to $83,812 thousand for the three months ended June 30, 2021, from $85,502 thousand in the same period of 2020[9]. - Non-interest expense decreased by $2.4 million or 2.9% to $82.6 million in Q2 2021, primarily due to lower FDIC insurance and franchise tax expenses[130]. Credit Quality - The provision for credit losses was $(21,025) thousand for the three months ended June 30, 2021, compared to $61,841 thousand in the same period of 2020, indicating improved credit quality[9]. - The allowance for credit losses for loans and loan commitments at June 30, 2021, was $146,496, compared to $195,341 at December 31, 2020, reflecting a reduction of 25%[35]. - The total allowance for credit losses on loans was $140.7 million, representing 1.36% of total portfolio loans as of June 30, 2021, down from 1.72% as of December 31, 2020[196]. - Non-performing loans represented 0.41% of total loans as of June 30, 2021, an increase from 0.37% at the end of Q2 2020[141]. Loan Portfolio - Total portfolio loans as of June 30, 2021, amounted to $10,357,192, a decrease of 4% from $10,789,233 in the previous year[33]. - The total commercial real estate portfolio remained stable at $5,705,246, slightly down from $5,705,392 year-over-year[33]. - The commercial and industrial loans, including PPP loans, decreased to $2,119,186 from $2,407,438, a decline of approximately 12%[33]. - The outstanding balance of commercial real estate loans was $5.7 billion, representing 54.9% of total loans as of June 30, 2021[177]. Securities and Investments - The total fair value of available-for-sale debt securities as of June 30, 2021, was $2,964,264,000, compared to $1,978,136,000 as of December 31, 2020[23]. - The total held-to-maturity debt securities amounted to $934,487,000 as of June 30, 2021, compared to $768,183,000 as of December 31, 2020[23]. - Net securities gains for the six months ended June 30, 2021, were $756,000 compared to $2.79 million for the same period in 2020[28]. - The fair value of available-for-sale debt securities increased to $2,964,264, compared to $1,978,136 in the previous period[89]. Deposits and Funding - Average deposits, excluding certificates of deposit, increased by 17.2% over the same period, largely due to stimulus deposits and increased personal savings[127]. - The Insured Cash Sweep (ICS®) program contributed to an increase in money market deposits, totaling $617.6 million as of June 30, 2021[206]. - Total deposits increased by $888.9 million or 7.2% during the first six months of 2021, reaching $13.3 billion[204]. - Interest bearing demand deposits increased by 13.2%, while savings deposits rose by 10.1%[206]. Economic Outlook - The one-year forecast for national unemployment was projected to peak at 5.2% in Q3 2021, decreasing to an average of 4.2% thereafter[33]. - The company expects core net interest margin to decline several basis points for the remainder of the year due to lower anticipated earning asset yields[136]. Operational Efficiency - Net cash provided by operating activities for the six months ended June 30, 2021, was $229,342 thousand, compared to $89,394 thousand for the same period in 2020, indicating improved operational efficiency[13]. - The company reported a significant increase in net swap fee and valuation income, which rose by $1.8 million or 61.9% in the first six months of 2021 compared to the same period in 2020[150]. Risk Management - The risk grading system for commercial loans emphasizes debt service coverage, leverage, and loan-to-value ratios, which are critical in assessing loan quality[38]. - The company has a reserve of $0.2 million on accrued interest related to loan modifications under the CARES Act[33]. - Approximately 3,550 loans totaling $2.2 billion were modified under the CARES Act, with $151.6 million currently in deferral[187].