Financial Performance - Net income for the three months ended September 30, 2023, was $36,842 thousand, a decline of 30.5% from $53,033 thousand in the same period of 2022[11]. - Basic earnings per common share for the three months ended September 30, 2023, was $0.58, down from $0.85 in the same period of 2022, a decrease of 31.8%[11]. - Net income available to common shareholders for the three months ended September 30, 2023, was $34.3 million, a decrease of 32% from $50.5 million in the same period of 2022[40]. - For the nine months ended September 30, 2023, net income was $116.5 million or $1.96 per diluted share, compared to $132.3 million or $2.19 per diluted share for the same period in 2022[143]. - The total comprehensive loss for the nine months ended September 30, 2023, was $297.906 million, compared to a loss of $266.640 million for the same period in 2022[128]. Asset and Deposit Changes - Total assets increased to $17,344,377 thousand as of September 30, 2023, compared to $16,931,905 thousand at December 31, 2022, reflecting a growth of 2.4%[9]. - Total deposits decreased slightly to $13,090,228 thousand as of September 30, 2023, from $13,131,090 thousand at December 31, 2022, a decrease of 0.3%[9]. - Cash, cash equivalents, and restricted cash at the end of the period stood at $495,082,000, up from $378,556,000 in 2022[18]. - The total amount of unfunded commercial loan commitments was $13.8 million as of September 30, 2023, down from $25.0 million as of December 31, 2022, a decrease of approximately 44.0%[67]. Loan and Credit Quality - The recorded investment in total loans increased to $11,333,550,000 at September 30, 2023, from $10,710,977,000 at December 31, 2022, representing a growth of approximately 5.8%[55]. - The total portfolio loans, including loans held for sale, reached $11,315,873,000 at September 30, 2023, compared to $10,702,728,000 at December 31, 2022, marking a significant increase[55]. - Non-performing loans decreased to 0.26% of total portfolio loans as of September 30, 2023, down from 0.32% at the end of Q3 2022[160]. - The total allowance for credit losses for loans and loan commitments at September 30, 2023, is $136.344 million, a decrease from $126.158 million at December 31, 2022[58]. - The provision for credit losses was $6.3 million in Q3 2023, compared to a negative provision of $0.5 million in Q3 2022[146]. Income and Expense Trends - Net interest income after provision for credit losses for the three months ended September 30, 2023, was $111,355 thousand, down from $125,036 thousand in the same period of 2022, a decrease of 10.9%[11]. - Total non-interest expense for the three months ended September 30, 2023, was $97,939 thousand, an increase of 6.5% from $91,941 thousand in the same period of 2022[11]. - Non-interest income decreased by $1.4 million or 4.3% in Q3 2023 compared to Q3 2022, largely due to a prior year's gain on the sale of equity investments[147]. - Non-interest expense increased by $6.0 million or 6.5% in Q3 2023 compared to Q3 2022, primarily due to increases in salaries and wages, employee benefits, equipment and software expenses, and FDIC insurance expenses[170]. Securities and Investments - Total available-for-sale debt securities amounted to $2.6 billion as of September 30, 2023, with unrealized losses of $392.9 million[44]. - The fair value of available-for-sale debt securities decreased from $2,529,140,000 on December 31, 2022, to $2,196,141,000 by September 30, 2023[117]. - The total gross unrealized securities losses increased by $94.3 million from $510.7 million at December 31, 2022, to $605.0 million at September 30, 2023[181]. - The total amount of commercial and industrial loans classified as "Pass" was $281.5 million in 2022, up from $189.2 million in 2021, reflecting a growth of 48.8%[86]. Derivatives and Interest Rate Swaps - Wesbanco had 210 customer interest rate swaps and caps with an aggregate notional amount of $1.4 billion as of September 30, 2023, up from 159 swaps with $0.9 billion in the previous year[89]. - Income from swap and cap fees for the three months ended September 30, 2023, was $2.5 million, an increase from $1.6 million in the same period of 2022[89]. - Wesbanco's total derivatives had a fair value of $97.424 million in assets and $95.644 million in liabilities, compared to $75.893 million in assets and $74.726 million in liabilities as of December 31, 2022[93]. Regulatory and Compliance - The company has adopted ASU 2022-02, which eliminates the accounting guidance for Troubled Debt Restructurings, effective January 1, 2023, impacting how loan modifications are reported[22]. - The allowance for credit losses methodology incorporates macroeconomic factors, with national unemployment projected to be 4.3% at quarter-end, expected to rise to an average of 4.7% over the forecast period[56].
WESBANCO REPSTG(WSBCP) - 2023 Q3 - Quarterly Report