Financial Performance - Net interest income for the three months ended June 30, 2023, was $121,567 thousand, up 8.3% from $112,228 thousand in the same period of 2022 [11]. - Net income for the six months ended June 30, 2023, was $87,221 thousand, slightly increasing from $86,870 thousand in the same period of 2022 [11]. - Earnings per common share for the three months ended June 30, 2023, was $0.71, an increase from $0.67 in the same period of 2022 [11]. - Comprehensive income for the six months ended June 30, 2023, was $85,010 thousand, compared to a loss of $84,071 thousand in the same period of 2022 [13]. - For the three months ended June 30, 2023, net income was $44.88 million, compared to $42.75 million for the same period in 2022, representing a year-over-year increase of 5.0% [14]. - Net income available to common shareholders for the three months ended June 30, 2023, was $42,349 thousand, an increase from $40,217 thousand in 2022, representing a growth of 5.3% [35]. - Net income available to common shareholders for Q2 2023 was $42.3 million, with diluted earnings per share of $0.71, compared to $40.2 million or $0.67 per diluted share in Q2 2022, representing a 5.2% increase in net income [134]. Asset and Deposit Changes - Total assets increased to $17,356,954 thousand as of June 30, 2023, compared to $16,931,905 thousand at December 31, 2022, reflecting a growth of 2.5% [10]. - Total deposits decreased to $12,861,434 thousand as of June 30, 2023, from $13,131,090 thousand at December 31, 2022, a decline of 2.1% [10]. - Total shareholders' equity decreased to $2.46 billion as of June 30, 2023, down from $2.55 billion at the end of March 2022, indicating a decline of approximately 3.2% [14]. - Total available-for-sale debt securities as of June 30, 2023, amounted to $2,329,222 thousand, down from $2,529,140 thousand as of December 31, 2022, indicating a decrease of 7.9% [39]. - Total liabilities measured at fair value remained stable at $77,458,000 as of June 30, 2023, consistent with the previous period [106]. Income and Expense Analysis - Total non-interest income rose to $31,841 thousand for the three months ended June 30, 2023, compared to $26,983 thousand in the same period of 2022, marking a growth of 18.5% [11]. - Non-interest expense, excluding restructuring and merger-related expenses, increased by $9.4 million or 10.8% to $96.4 million in Q2 2023 compared to Q2 2022 [139]. - Interest expense increased by $48.3 million in Q2 2023 compared to Q2 2022, reflecting the impact of federal funds rate increases [144]. - The provision for credit losses was $3,028 thousand for the three months ended June 30, 2023, compared to a reversal of $812 thousand in the same period of 2022 [11]. - The provision for loan losses for the six months ended June 30, 2023, is $4.876 million, compared to a provision of $(4.190) million for the same period in 2022, indicating a significant increase in provisions [52]. Loan and Credit Quality - The total recorded investment in loans increased to $11,158,934,000 at June 30, 2023, from $10,710,977,000 at December 31, 2022, representing a growth of approximately 4.2% [50]. - Non-performing loans decreased to 0.28% of total portfolio loans as of June 30, 2023, down from 0.35% in the previous year, showing improved loan quality [151]. - The allowance for credit losses on loans decreased to $120.166 million as of June 30, 2023, from $117.790 million at the end of 2022 [52]. - The total allowance for credit losses for loans and loan commitments as of June 30, 2023, is $130.29 million, a decrease from $126.16 million at the end of 2022 [52]. - Criticized and classified loans decreased to 1.68% of total portfolio loans as of June 30, 2023, down from 3.14% in the previous year, indicating improved risk ratings [151]. Capital and Regulatory Compliance - Shareholders' equity increased by $38.3 million or 1.6% to $2.5 billion at June 30, 2023, driven by net income of $87.2 million [205]. - Regulatory capital levels for Wesbanco were substantially above the minimum required to be considered "well capitalized" as of June 30, 2023 [207]. - Tier 1 capital to risk-weighted assets ratio was 12.12% for Wesbanco, compared to 12.33% at December 31, 2022 [209]. - Total capital to risk-weighted assets ratio was 14.83% for Wesbanco, down from 15.11% at December 31, 2022 [209]. Market and Economic Factors - Average deposits decreased by 6.1% over the same period due to interest rate and inflationary pressures [136]. - The company operates through 194 branches and 183 ATM machines across multiple states, significantly impacted by economic factors such as market interest rates and regional economic conditions [132]. - The effective tax rate for the first half of 2023 was 17.9%, down from 18.8% in the same period of 2022 [140].
WESBANCO REPSTG(WSBCP) - 2023 Q2 - Quarterly Report