WesBanco, Inc. (WSBC) Bundle
A Brief History of WesBanco, Inc.
WesBanco, Inc., a diversified financial services holding company headquartered in Wheeling, West Virginia, has a rich history dating back to 1870. Over the years, the company has expanded its operations and service offerings through strategic acquisitions and organic growth.
Recent Financial Performance
As of September 30, 2024, WesBanco reported a net income of $101.9 million for the year-to-date period, compared to $116.5 million for the same period in 2023. The diluted earnings per share (EPS) for the third quarter of 2024 was $0.54, reflecting a slight decrease from $0.58 in Q3 2023. Total assets reached $20.8 billion, a significant increase from $19.5 billion at the end of 2023.
Balance Sheet Overview
| Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $20.8 billion | $19.5 billion |
| Total Liabilities | $18.0 billion | $16.5 billion |
| Total Equity | $2.8 billion | $3.0 billion |
Loan Portfolio and Credit Quality
WesBanco's loan portfolio grew by 9.6% year-over-year, driven primarily by increased demand for commercial loans. The provision for credit losses for the third quarter of 2024 was $4.8 million, down from $6.3 million in Q3 2023. The allowance for credit losses stood at $149.1 million as of September 30, 2024.
Interest Income and Expense
Interest income increased by 16.4% in Q3 2024 compared to Q3 2023, reaching $213.7 million. Interest expense also rose significantly, totaling $92.6 million for the same period, leading to a net interest income of $121.1 million.
Dividend Policy
WesBanco declared common dividends of $0.36 per share in Q3 2024, reflecting a 2.9% increase from the previous quarter. The company has consistently increased its dividend payout, demonstrating a commitment to returning value to shareholders.
Acquisitions and Growth Strategy
In 2024, WesBanco completed a significant capital raise of $200 million through a common equity offering, primarily to support its merger with Premier Financial. This merger is expected to enhance WesBanco's market presence and operational efficiency.
Market Position
WesBanco operates in the highly competitive banking sector, focusing on community banking, commercial lending, and wealth management services. The bank has positioned itself strategically in the Mid-Atlantic region, with a strong emphasis on customer service and community engagement.
Future Outlook
Looking ahead, WesBanco aims to leverage its recent acquisitions and capital investments to drive growth and enhance shareholder value. The company is focused on expanding its digital banking capabilities and improving customer experience to adapt to changing market dynamics.
A Who Owns WesBanco, Inc. (WSBC)
Major Shareholders
As of September 30, 2024, WesBanco, Inc. has a diverse ownership structure. The following table outlines the largest shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 10.2% | Institutional Investor |
| The Vanguard Group, Inc. | 9.8% | Institutional Investor |
| Wellington Management Group LLP | 7.5% | Institutional Investor |
| State Street Corporation | 6.9% | Institutional Investor |
| Dimensional Fund Advisors LP | 5.7% | Institutional Investor |
| Insider Holdings (Management) | 2.1% | Management |
Institutional Ownership
Institutional investors hold a significant portion of WesBanco's shares. The total institutional ownership percentage as of September 30, 2024, is approximately 50.3%. This includes various pension funds, mutual funds, and other financial institutions. The following table summarizes the distribution:
| Institutional Investor Type | Ownership Percentage |
|---|---|
| Pension Funds | 20.1% |
| Mutual Funds | 15.6% |
| Insurance Companies | 8.1% |
| Other Institutional Investors | 6.5% |
Stock Performance and Recent Developments
WesBanco's stock (WSBC) has shown a steady performance with a closing price of $17.50 per share as of September 30, 2024. The stock has experienced a year-to-date increase of approximately 12.5%. The company recently completed a $200 million common equity capital raise to support its merger with Premier, which is expected to enhance shareholder value.
Recent Financial Highlights
As of September 30, 2024, WesBanco reported total assets of $26.3 billion, with total shareholders' equity increasing to $2.8 billion, reflecting a 10.6% increase from December 31, 2023. The net income for the nine months ended September 30, 2024, was $101.9 million, resulting in diluted earnings per share of $1.61.
Ownership Changes
In recent months, WesBanco has seen a shift in ownership dynamics due to the capital raise. The issuance of 7,272,728 shares on August 1, 2024, increased the total number of shares outstanding to approximately 64.6 million. This issuance was strategically aimed at bolstering the bank's capital structure to facilitate future growth opportunities.
Conclusion on Ownership Structure
The ownership of WesBanco, Inc. is characterized by a mix of institutional and insider holdings. The strategic decisions made in 2024, including the capital raise, aim to position the company for future growth while maintaining a robust capital base to support its operations and potential acquisitions.
WesBanco, Inc. (WSBC) Mission Statement
The mission statement of WesBanco, Inc. emphasizes the commitment to providing high-quality financial services while fostering a culture of integrity, respect, and collaboration. The company aims to be a trusted financial partner to its customers and communities, focusing on sustainable growth and value creation.
Financial Performance Overview
As of September 30, 2024, WesBanco reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in thousands) | $36,303 | $34,817 | 4.3% |
| Diluted Earnings Per Share | $0.56 | $0.59 | -5.1% |
| Net Interest Income (in thousands) | $123,000 | $119,500 | 2.1% |
| Total Assets (in billions) | $29.5 | $28.3 | 4.2% |
| Total Deposits (in billions) | $13.8 | $13.2 | 4.5% |
Capital Resources
WesBanco's capital resources reflect a stable and growing financial position:
| Type | Amount (in millions) |
|---|---|
| Total Shareholders' Equity | $2,800 |
| Common Equity Tier 1 Capital Ratio | 11.89% |
| Total Capital Ratio | 15.74% |
| Leverage Ratio | 10.69% |
Loan Portfolio Overview
The composition of WesBanco's loan portfolio as of September 30, 2024, is as follows:
| Loan Type | Amount (in millions) |
|---|---|
| Commercial Real Estate | $7,206 |
| Commercial and Industrial | $1,717 |
| Residential Real Estate | $2,519 |
| Home Equity | $796 |
| Consumer Loans | $212 |
| Total Portfolio Loans | $12,451 |
Deposits Composition
WesBanco's deposit composition as of September 30, 2024, is detailed below:
| Deposit Type | Amount (in millions) |
|---|---|
| Non-Interest Bearing Demand | $3,778 |
| Interest Bearing Demand | $3,667 |
| Money Market | $2,347 |
| Savings Deposits | $2,382 |
| Certificates of Deposit | $1,663 |
| Total Deposits | $13,837 |
Key Strategic Initiatives
WesBanco is focused on several strategic initiatives aimed at enhancing customer experience and operational efficiency, including:
- Investment in technology to improve service delivery.
- Expansion of product offerings to meet diverse customer needs.
- Commitment to community engagement and corporate social responsibility.
- Focus on sustainable practices in banking operations.
Market Position
WesBanco operates within a competitive financial landscape, positioning itself as a community-focused bank with a strong emphasis on customer service and local involvement.
How WesBanco, Inc. (WSBC) Works
Business Overview
WesBanco, Inc. is a multi-state bank holding company headquartered in Wheeling, West Virginia. It operates through its subsidiary, WesBanco Bank, Inc., providing a wide range of financial services to individuals and businesses. As of September 30, 2024, WesBanco operates 192 financial centers across various states.
Financial Performance
For the third quarter of 2024, WesBanco reported a net income available to common shareholders of $34.7 million, translating to diluted earnings per share of $0.54. This is a slight decrease from the $34.3 million or $0.58 per share reported in the same quarter of 2023. The net income for the first nine months of 2024 was $94.3 million, with earnings per share of $1.54, compared to $116.5 million or $1.96 per share in the same period of 2023.
| Period | Net Income ($ millions) | Earnings Per Share ($) |
|---|---|---|
| Q3 2024 | 34.7 | 0.54 |
| Q3 2023 | 34.3 | 0.58 |
| 9M 2024 | 94.3 | 1.54 |
| 9M 2023 | 116.5 | 1.96 |
Net Interest Income
Net interest income, WesBanco's primary source of revenue, was $121.1 million for Q3 2024, up from $117.7 million in Q3 2023. For the first nine months of 2024, net interest income amounted to $351.7 million, down from $363.6 million in the same period of 2023. The net interest margin for the first nine months of 2024 was 2.94%, a decrease from 3.19% in the previous year.
| Period | Net Interest Income ($ thousands) | Net Interest Margin (%) |
|---|---|---|
| Q3 2024 | 121,142 | 2.92 |
| Q3 2023 | 117,682 | 3.00 |
| 9M 2024 | 351,701 | 2.94 |
| 9M 2023 | 363,580 | 3.16 |
Loan and Deposit Growth
WesBanco reported a total portfolio loan balance of $12.5 billion as of September 30, 2024, which is an increase of $0.8 billion or 7.0% from December 31, 2023. Total deposits increased by $668.6 million or 5.1% during the same period, reaching $13.8 billion.
| Category | Amount ($ billions) | Change ($ millions) | % Change |
|---|---|---|---|
| Loans | 12.5 | 800 | 7.0 |
| Deposits | 13.8 | 668.6 | 5.1 |
Capital Structure
As of September 30, 2024, WesBanco's total assets were $18.5 billion, with shareholders' equity amounting to $2.8 billion, reflecting a 10.6% increase from the end of 2023. The bank's Tier 1 capital ratio stood at 12.89%, well above the regulatory minimum requirement.
| Measurement | Value |
|---|---|
| Total Assets ($ billions) | 18.5 |
| Shareholders' Equity ($ billions) | 2.8 |
| Tier 1 Capital Ratio (%) | 12.89 |
Expense Management
WesBanco's total non-interest expenses for the third quarter of 2024 were $58.5 million, up from $56.0 million in the same period of the previous year. The increase was primarily attributed to higher professional fees and operational expenses related to loan origination.
| Period | Total Non-Interest Expenses ($ millions) |
|---|---|
| Q3 2024 | 58.5 |
| Q3 2023 | 56.0 |
Market Position and Strategy
WesBanco continues to expand its market presence through strategic acquisitions and organic growth. The company announced a definitive merger agreement with Premier Financial Corp, aiming to enhance its service offerings and market reach in the Midwest and Mid-Atlantic regions.
Liquidity and Funding
As of September 30, 2024, WesBanco's liquidity sources totaled approximately $4.4 billion. The bank maintains a line of credit with the Federal Home Loan Bank, which was $3.6 billion at the end of September 2024.
| Liquidity Source | Amount ($ billions) |
|---|---|
| Total Liquidity Sources | 4.4 |
| FHLB Line of Credit | 3.6 |
How WesBanco, Inc. (WSBC) Makes Money
Net Interest Income
WesBanco's largest revenue source is net interest income, which for the three months ended September 30, 2024, was $121,142,000, up from $117,682,000 for the same period in 2023. For the nine months ended September 30, 2024, net interest income was $351,701,000 compared to $363,580,000 in 2023.
| Period | Net Interest Income ($000) | Change ($000) |
|---|---|---|
| Q3 2024 | 121,142 | 3,460 |
| Q3 2023 | 117,682 | - |
| 9M 2024 | 351,701 | (11,879) |
| 9M 2023 | 363,580 | - |
The increase in net interest income in Q3 2024 was attributed to a 9.6% increase in average portfolio loans, while for the nine months, the decline was due to a decrease in the net interest margin, which fell to 2.94% from 3.16% year-over-year. The cost of interest-bearing liabilities increased by 69 basis points to 3.21% in Q3 2024.
Non-Interest Income
Non-interest income is another significant revenue stream, contributing 19.6% of total revenue for Q3 2024. Total non-interest income for Q3 2024 was $29,612,000, a decrease from $30,879,000 in Q3 2023. For the nine months, it rose slightly to $91,596,000 from $90,372,000 in 2023.
| Category | Q3 2024 ($000) | Q3 2023 ($000) | Change ($000) |
|---|---|---|---|
| Trust Fees | 7,517 | 6,705 | 812 |
| Service Charges on Deposits | 7,945 | 6,726 | 1,219 |
| Mortgage Banking Income | 1,280 | 975 | 305 |
| Net Securities Gains | 675 | (337) | 1,012 |
| Net Swap Fee Income | (627) | 3,845 | (4,472) |
The decline in total non-interest income was primarily due to a significant decrease in net swap fee and valuation income, which dropped by $4.5 million.
Loan Growth and Composition
WesBanco's average loan balances increased by $1.1 billion, or 9.6%, in Q3 2024. The total portfolio loans reached $12.5 billion as of September 30, 2024. The composition of earning assets shows that loans represented 75.1% of total earning assets, up from 72.5% in Q3 2023.
Deposits and Funding Sources
Total deposits increased by $668.6 million, or 5.1%, to $13.8 billion as of September 30, 2024. The breakdown of deposits is as follows:
| Deposit Type | September 30, 2024 ($000) | December 31, 2023 ($000) | % Change |
|---|---|---|---|
| Non-interest Bearing Demand | 3,777,781 | 3,962,592 | (4.7) |
| Interest Bearing Demand | 3,667,082 | 3,463,443 | 5.9 |
| Money Market | 2,347,444 | 2,017,713 | 16.3 |
| Savings Deposits | 2,381,542 | 2,493,254 | (4.5) |
| Certificates of Deposit | 1,663,494 | 1,231,702 | 35.1 |
The increase in deposits was largely driven by deposit gathering and retention efforts by WesBanco's teams.
Capital Resources and Shareholder Equity
As of September 30, 2024, WesBanco's shareholders' equity increased by 10.6% to $2.8 billion. This increase was influenced by a private placement of common shares totaling $191 million, which was used to support the merger with Premier Financial Corp.
| Capital Category | September 30, 2024 ($000) | December 31, 2023 ($000) | % Change |
|---|---|---|---|
| Tier 1 Leverage Ratio | 10.69% | 9.87% | +0.82 |
| Common Equity Tier 1 Ratio | 11.89% | 10.99% | +0.90 |
| Total Capital Ratio | 15.74% | 14.91% | +0.83 |
These capital ratios indicate that WesBanco is well-capitalized under regulatory guidelines.
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Article updated on 8 Nov 2024
Resources:
- WesBanco, Inc. (WSBC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of WesBanco, Inc. (WSBC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View WesBanco, Inc. (WSBC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.