WesBanco Q2 2024 – Net Income Down to $26.4M

By Tamara Parker • Friday, July 26 15:24 • Permanent Link

WesBanco, Inc. has released its financial results for the second quarter of 2024, revealing a net income available to common shareholders of $26.4 million, with diluted earnings per share of $0.44. This marks a decrease from the second quarter of 2023, which reported a net income of $42.3 million and diluted earnings per share of $0.71. For the six months ended June 30, 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.

The company’s total loan growth for the quarter was 10.1% year-over-year, with total loans up $1.1 billion compared to the prior year period. Deposits also saw an increase of 4.4% year-over-year, reaching $13.4 billion. Additionally, non-interest income increased by 2.4% quarter-over-quarter, with trust and investment services assets under management of $5.6 billion and broker-dealer securities account value of $1.8 billion.

The net interest margin for the second quarter of 2024 stood at 2.95%, reflecting a 3 basis point sequential increase. However, net interest income for the same period decreased by 4.1% year-over-year, amounting to $116.6 million. Non-interest income for the second quarter of 2024 was $31.4 million, a decrease of 1.5% from the second quarter of 2023. These figures were primarily impacted by lower net swap fee and valuation income, as well as higher net gains on other real estate owned and other assets in the prior year period.

Non-interest expense, excluding restructuring and merger-related costs, for the three months ended June 30, 2024, increased by $2.2 million, or 2.3%, year-over-year. This increase was primarily due to rises in other operating expenses and equipment and software expenses.

As of June 30, 2024, WesBanco maintained strong regulatory capital ratios, with tier I leverage at 9.72%, tier I risk-based capital ratio at 11.58%, common equity tier 1 capital ratio (“CET 1”) at 10.58%, and total risk-based capital at 14.45%. The tangible common equity to tangible assets ratio was 7.52%.

The market has reacted to these announcements by moving the company's shares -5.0% to a price of $32.56. For more information, read the company's full 8-K submission here.

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