Financial Performance - Net income for Q3 2024 was $34.7 million, or $0.54 per share, compared to $34.3 million and $0.58 per share in Q3 2023[1]. - Non-interest income for Q3 2024 was $29.6 million, a decrease of 4.1% year-over-year, primarily due to lower net swap fee income[11]. - Net income available to common shareholders was $34,741,000, a 1.3% increase from $34,311,000 in the prior year[32]. - Net income per common share - diluted decreased by 6.9% to $0.54 compared to $0.58 in the same quarter of 2023[32]. - Net income available to common shareholders for Q3 2024 was $34,741,000, an increase from $26,385,000 in Q2 2024, representing a growth of 31.5%[40]. - The company reported a total net income available to common shareholders of $94,287,000 for the year to date, down from $116,470,000 in the previous year[45]. Loan and Deposit Growth - Total loans increased by $1.1 billion year-over-year, with a 10.0% growth rate, and deposits reached $13.8 billion, up 5.7% year-over-year[3][5]. - Total commercial loans reached $8.9 billion, reflecting an 11.9% year-over-year increase and a 7.5% quarter-over-quarter annualized growth[4]. - Deposits grew 12.1% annualized from the previous quarter, with total demand deposits representing 54% of total deposits[6]. - Total deposits increased by 5.7% to $13,837,343,000 from $13,090,228,000 in 2023[36]. - Portfolio loans, net of unearned income, rose by 10.0% to $12,451,430,000 from $11,315,873,000 in 2023[36]. Interest Income and Expenses - Total interest and dividend income increased by 16.4% year-over-year to $213,729,000 for the three months ended September 30, 2024, compared to $183,589,000 in 2023[32]. - Net interest income after provision for credit losses was $116,344,000, reflecting a 4.5% increase from $111,355,000 in the same period last year[32]. - Total interest expense rose by 40.5% to $92,587,000 for the three months ended September 30, 2024, compared to $65,907,000 in 2023[32]. - The net interest margin for Q3 2024 was 2.95%, stable compared to the previous quarter, but down 8 basis points year-over-year due to higher funding costs[9][10]. Credit Quality and Allowance for Losses - The allowance for credit losses increased to 1.13% of total loans, amounting to $140.9 million, due to higher unemployment assumptions[8]. - The provision for credit losses decreased by 24.2% to $4,798,000 from $6,327,000 in the same period last year[32]. - The annualized net loan charge-offs/average loans increased significantly to 0.11% from 0.03%, a rise of 266.67%[34]. - Total past due loans increased to $54,189,000 in Q3 2024, up from $29,408,000 in Q2 2024, marking an increase of 84.0%[42]. - The allowance for credit losses on loans increased to $140,872,000 in Q3 2024 from $136,509,000 in Q2 2024, a rise of 2.0%[42]. Capital and Regulatory Ratios - Regulatory capital ratios remain strong, with a Tier I risk-based capital ratio of 12.89% and a common equity Tier 1 capital ratio of 11.89% as of September 30, 2024[17]. - Total shareholders' equity increased by 14.4% to $2,801,585,000 from $2,447,941,000 in 2023[36]. - Common equity tier 1 capital ratio (CET 1) rose to 11.89% in Q3 2024 from 10.58% in Q2 2024[42]. - Tier I leverage capital ratio improved to 10.69% in Q3 2024 from 9.72% in Q2 2024[42]. Merger and Acquisition - The company raised $200 million in common equity during the quarter to support future growth and the pending acquisition of Premier Financial Corp.[3][16]. - The proposed merger with Premier Financial Corp. is subject to various risks, including integration challenges and shareholder approvals[23]. - The merger is expected to yield cost savings and revenue synergies, although these may not be fully realized within the anticipated timeframes[23]. - Shareholders are encouraged to read the joint proxy statement/prospectus regarding the merger for important information[29]. - The merger's success is contingent on obtaining necessary governmental approvals and shareholder votes[23]. Operational Efficiency - Non-interest expense for Q3 2024 was $99.2 million, a 2.0% increase year-over-year, driven by higher operating expenses[13]. - The efficiency ratio improved to 65.29% for the three months ended September 30, 2024, compared to 66.11% in the previous quarter, indicating enhanced operational efficiency[46]. - Full-time equivalent employees decreased to 2,277 in Q3 2024 from 2,370 in Q2 2024, a reduction of 3.9%[40].
WESBANCO REPSTG(WSBCP) - 2024 Q3 - Quarterly Results