On July 26, 2024, Wesbanco Inc (WSBC, Financial) released its 8-K filing for the second quarter of 2024. Wesbanco Inc is a bank holding company that offers a full range of financial services, including retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking, and insurance. The company operates primarily in the Rust Belt region of the United States through its commercial bank, WesBanco Bank.
Performance Overview
Wesbanco Inc reported net income available to common shareholders of $26.4 million for Q2 2024, translating to diluted earnings per share (EPS) of $0.44. This represents a significant decline from the $42.3 million and $0.71 per diluted share reported in Q2 2023. For the first half of 2024, net income was $59.5 million, or $1.00 per diluted share, compared to $82.2 million, or $1.38 per diluted share, for the same period in 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Income (GAAP) | $26.4 million | $42.3 million | -37.7% |
| Diluted EPS (GAAP) | $0.44 | $0.71 | -38.0% |
| Net Interest Income | $116.6 million | $121.6 million | -4.1% |
| Non-Interest Income | $31.4 million | $31.8 million | -1.3% |
| Non-Interest Expense | $102.4 million | $96.4 million | 6.2% |
Financial and Operational Highlights
Wesbanco Inc achieved a total loan growth of 10.1% year-over-year and 3.2% quarter-over-quarter, driven by both commercial and residential lending. Deposits increased by 4.4% year-over-year to $13.4 billion. However, the quarter-over-quarter increase in the provision for credit losses negatively impacted diluted EPS by approximately $0.09, primarily due to strong loan growth, changes in macroeconomic factors, and a specific reserve on one commercial and industrial loan.
Net Interest Margin and Income
The net interest margin for Q2 2024 was 2.95%, a slight increase from the previous quarter but a decrease of 23 basis points year-over-year. Net interest income for the quarter was $116.6 million, down 4.1% from Q2 2023, reflecting the impact of rising rates on funding costs more than offsetting loan growth and higher loan and securities yields.
Non-Interest Income and Expense
Non-interest income for Q2 2024 was $31.4 million, a decrease of 1.3% year-over-year. This was primarily due to lower net swap fee and valuation income. Non-interest expense, excluding restructuring and merger-related costs, increased by 2.3% year-over-year to $98.6 million, driven by higher other operating expenses and equipment and software expenses.
Credit Quality
Key credit quality metrics such as non-performing assets, total past due loans, and net loan charge-offs remained at low levels and favorable to peer bank averages. The allowance for credit losses to total portfolio loans increased to 1.11% of total loans, or $136.5 million, primarily due to strong loan growth and higher unemployment assumptions.
Capital Position
Wesbanco Inc continues to maintain strong regulatory capital ratios. As of June 30, 2024, the Tier I leverage ratio was 9.72%, the Tier I risk-based capital ratio was 11.58%, and the total risk-based capital ratio was 14.45%. The tangible common equity to tangible assets ratio was 7.52%.
“WesBanco sustained its positive momentum in 2024 with solid second-quarter results characterized by continued loan and deposit growth. We maintained a diligent focus on cost control, while making strategic investments in our company to secure our long-term success,” said Jeff Jackson, President and Chief Executive Officer, WesBanco.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Wesbanco Inc for further details.
