WesBanco(US:WSBC)2024-07-26 12:01Financial Performance - For Q2 2024, WesBanco reported net income of $26.4 million, or $0.44 per diluted share, down from $42.3 million, or $0.71 per diluted share in Q2 2023, reflecting a year-over-year decrease of 37.8% in net income [17]. - Net income available to common shareholders (GAAP) for the second quarter of 2024 was $26,385,000, a decrease from $42,349,000 in the same period of 2023 [18]. - Net income available to common shareholders decreased by 37.7% to $26,385,000 for the three months ended June 30, 2024, down from $42,349,000 in the prior year [40]. - Net income per common share - diluted fell by 38.0% to $0.44 for the three months ended June 30, 2024, compared to $0.71 in the same period last year [40]. - The return on average tangible common equity for the six months ended June 30, 2024, was 9.90%, down from 14.40% in the prior year [29]. - Return on average assets, excluding after-tax restructuring and merger-related expenses, was 0.66% for the quarter ended June 30, 2024, compared to 0.98% for the same quarter last year [46]. - Return on average equity, excluding after-tax restructuring and merger-related expenses, was 4.65% for the quarter ended June 30, 2024, down from 6.82% in the same quarter last year [46]. - The annualized return on average assets, excluding certain items, was 1.11% for the quarter ended June 30, 2024, compared to 1.32% a year earlier [48]. - The annualized return on average equity, excluding certain items, was 7.80% for the quarter ended June 30, 2024, down from 9.17% in the same quarter last year [48]. Loan and Deposit Growth - Portfolio loans increased to $12.3 billion, a rise of $1.1 billion, or 10.1%, year-over-year, driven by strong performance in commercial and residential lending [2]. - Total commercial loans reached $8.8 billion, marking an increase of 11.5% year-over-year and 15.2% quarter-over-quarter annualized [2]. - Total loan growth was 10.1% year-over-year, with total loans increasing by $1.1 billion compared to the prior year, driven by both commercial and residential lending [18]. - Deposits as of June 30, 2024, were $13.4 billion, reflecting a 4.4% increase year-over-year [19]. - Total deposits rose by 4.4% to $13,432,373 from $12,861,434 year-over-year [30]. Income and Expenses - Net interest income for Q2 2024 was $116.6 million, a decrease of $5.0 million, or 4.1%, year-over-year, primarily due to rising funding costs [4]. - Non-interest income for Q2 2024 was $31.4 million, down $0.5 million, or 1.5%, from the same period in 2023, mainly due to lower net swap fee income [5]. - Non-interest expense for the first half of 2024 was $195.8 million, an increase of $6.4 million, or 3.4%, compared to the prior year, driven by higher operating expenses and FDIC insurance costs [7]. - Non-interest expense for the quarter ended June 30, 2024, was $102,392, an increase from $97,191 in the previous quarter [35]. - Total non-interest income for the three months ended June 30, 2024, was $31,355,000, a slight decrease of 1.5% from $31,841,000 in the prior year [40]. - Total interest expense increased by 58.6% to $86,400,000 for the three months ended June 30, 2024, compared to $54,488,000 in the same period last year [40]. Credit Quality - The provision for credit losses increased, negatively impacting diluted earnings per share by approximately $0.09, primarily due to strong loan growth and macroeconomic changes [18]. - The provision for credit losses for the second quarter of 2024 was $10.541 million, up from $4.803 million in the same quarter of 2023, indicating a significant increase in credit loss provisions [36]. - Allowance for credit losses increased to 1.11% of total loans, amounting to $136.5 million as of June 30, 2024 [20]. - Non-performing assets as a percentage of total assets remained stable at 0.20% [20]. - Total non-performing loans increased to $35,468 thousand from $32,919 thousand in the previous quarter, reflecting a rise of 4.2% [45]. - Total past due loans increased to $29,408 thousand from $23,923 thousand, showing a rise of 23.0% [45]. - The ratio of allowance for credit losses on loans to total portfolio loans was 1.11%, up from 1.09% in the previous quarter [45]. Capital Ratios - As of June 30, 2024, WesBanco maintained strong regulatory capital ratios, with a Tier I leverage ratio of 9.72% and a total risk-based capital ratio of 14.45% [8]. - Tier I risk-based capital ratio decreased to 11.58% from 12.12% year-over-year [34]. - Common equity tier 1 capital ratio (CET1) decreased to 10.58% from 11.04% year-over-year [34]. Asset Management - Total assets increased by 4.4% to $18,128,375 compared to $17,356,954 in the previous year [30]. - Total assets reached $18,128,375, up from $17,772,735 in the previous quarter [35]. - Average total assets for the second quarter of 2024 were $17.890 billion, an increase from $17.426 billion in the same quarter of 2023 [36]. - WesBanco reported total assets of $18.1 billion as of June 30, 2024, with Trust and Investment Services holding $5.6 billion in assets under management [39].