Wesbanco Inc (WSBC) Reports Q3 2023 Earnings
Wesbanco Inc (NASDAQ:WSBC) reported a net income of $34.3 million for Q3 2023, down from $50.5 million in Q3 2022.
Diluted earnings per share for Q3 2023 were $0.58, compared to $0.85 in Q3 2022.
Total loan growth was 10.1% year-over-year and 7.6% annualized.
Deposits increased compared to the quarter ending June 30, 2023, reflecting deposit gathering and retention efforts across retail and business customers.
On October 25, 2023, Wesbanco Inc (NASDAQ:WSBC) released its earnings report for the third quarter of 2023. The company reported a net income of $34.3 million, with diluted earnings per share of $0.58. This is a decrease from the third quarter of 2022, where the company reported a net income of $50.5 million and diluted earnings per share of $0.85.
Financial Performance
For the nine months ended September 30, 2023, Wesbanco Inc (NASDAQ:WSBC) reported a net income of $116.5 million, or $1.96 per diluted share, compared to $132.3 million, or $2.19 per diluted share, for the 2022 period. The company also reported solid deposit and loan growth, maintaining strong capital levels and credit quality.
Loan and Deposit Growth
Wesbanco Inc (NASDAQ:WSBC) reported a total loan growth of 10.1% year-over-year and 7.6% annualized. The company's deposits increased compared to the quarter ending June 30, 2023, reflecting deposit gathering and retention efforts across retail and business customers. The average loans to average deposits were 87%.
Balance Sheet and Credit Quality
As of September 30, 2023, total portfolio loans were $11.3 billion, which increased 10.1% year-over-year. Total deposits, as of September 30, 2023, were $13.1 billion, up 1.8% from June 30, 2023. The company's key credit quality metrics such as non-performing assets, total past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages.
Net Interest Margin and Income
The net interest margin of 3.03% for the third quarter of 2023 decreased 15 basis points sequentially primarily due to higher funding costs from increasing deposit costs. Net interest income of $117.7 million decreased $6.8 million, or 5.5%, during the third quarter of 2023, as compared to the same quarter of 2022.
Non-Interest Income and Expense
For the third quarter of 2023, non-interest income of $30.9 million decreased $1.4 million, or 4.3%, from the third quarter of 2022. Non-interest expense for the three months ended September 30, 2023 totaled $97.3 million, reflecting increased salaries and wages, benefits, equipment and software expense, and FDIC insurance.
Capital and Liquidity
Wesbanco Inc (NASDAQ:WSBC) remains well-capitalized with solid liquidity and a strong balance sheet with capacity to fund loan growth. At September 30, 2023, Tier I leverage was 9.84%, Tier I risk-based capital ratio was 12.07%, common equity Tier 1 capital ratio (CET 1) was 11.00%, and total risk-based capital was 14.97%.
Explore the complete 8-K earnings release (here) from Wesbanco Inc for further details.
This article first appeared on GuruFocus.
