Marks eight consecutive quarters of strong year-over-year loan growth averaging 9% WHEELING, W.Va., July 26, 2024 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (NASDAQ:WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and six months ended June 30, 2024. Net income available to common shareholders for the second quarter of 2024 was $26.4 million, with diluted earnings per share of $0.44, compared to $42.3 million and $0.71 per diluted share, respectively, for the second quarter of 2023. 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 2023 period. As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the six months ended June 30, 2024 was $62.5 million, or $1.05 per diluted share, as compared to $84.7 million, or $1.43 per diluted share (non-GAAP measures). For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 (unaudited, dollars in thousands, except per share amounts) Net Income Diluted EarningsPer Share Net Income Diluted EarningsPer Share Net Income Diluted EarningsPer Share Net Income Diluted EarningsPer Share Net income available to common shareholders (Non-GAAP)(1) $        29,369 $             0.49 $        42,377 $             0.71 $        62,530 $             1.05 $        84,677 $             1.43 Less: After-tax restructuring and merger-related expenses (2,984) (0.05) (28) - (2,984) (0.05) (2,519) (0.05) Net income available to common shareholders (GAAP) $        26,385 $             0.44 $        42,349 $             0.71 $        59,546 $             1.00 $        82,158 $             1.38 (1) See non-GAAP financial measures for additional information relating to the calculation of these items.   Financial and operational highlights during the quarter ended June 30, 2024: Total loan growth was 10.1% year-over-year and 3.2% quarter-over-quarter, or 12.9% annualized Total loans are up $1.1 billion as compared to the prior year period, driven by both commercial and residential lending Deposits of $13.4 billion increased 4.4% year-over-year Average loans to average deposits were 89.4%, providing continued capacity to fund loan growth The quarter-over-quarter increase in provision for credit losses, which negatively impacted diluted earnings per share by approximately $0.09, was primarily due to strong loan growth, changes in macroeconomic factors, and a specific reserve on one commercial and industrial (C&I) loan Non-interest income increased 2.4% quarter-over-quarter, with growth across key categories more than offsetting the seasonal decline in trust fees Trust and investment services assets under management of $5.6 billion and broker-dealer securities account value of $1.8 billion increased due to market value adjustments and organic growth Continued efforts to optimize our financial center network to improve efficiencies 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 (based upon the prior four quarters for banks with total assets between $10 billion and $25 billion) WesBanco continues to earn national accolades, most recently Newsweeks' America's Greatest Workplaces 2024 "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. "The strength of our balance sheet and long-term growth strategies, supported by the high engagement of our diverse and talented teams, as evidenced by our inclusion in Newsweek's America's Greatest Workplaces list, position us well for continued growth in the second half of 2024." Balance SheetAs of June 30, 2024, portfolio loans were $12.3 billion, which increased $1.1 billion, or 10.1%, year-over-year driven by strong performance from our commercial and residential lending teams. Total commercial loans of $8.8 billion increased 11.5% year-over-year and 15.2% quarter-over-quarter annualized. Commercial loan growth continues to reflect the benefit of our commercial banker hiring and loan production office strategy, as well as lower commercial real estate payoffs. Total residential lending reflects increased mortgage origination production with lower staffing levels, as well as increased home equity line of credit usage. Deposits, as of June 30, 2024, were $13.4 billion, up 4.4% from June 30, 2023 and up 2.0% from December 31, 2023, reflecting the benefit of deposit gathering and retention efforts by our retail and commercial teams. The composition of total deposits continues to have some mix shift, reflecting the impact of the significant increase in the federal funds rate; however, total demand deposits continue to represent 55% of total deposits, with the non-interest bearing component representing 28%, which remains consistent with the percentage range prior to the pandemic. Credit QualityAs of June 30, 2024, total loans past due, criticized and classified loans, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range through the last two years. Criticized and classified loans as a percent of the loan portfolio decreased 15 basis points quarter-over-quarter to 2.15%, while non-performing assets as a percentage of total assets remained consistent with the prior quarter and year periods at 0.20%. The allowance for credit losses to total portfolio loans at June 30, 2024 increased to 1.11% of total loans, or $136.5 million. The increase in the allowance for credit losses and resulting $10.5 million provision for credit losses in the second quarter was due primarily to strong loan growth, higher unemployment assumptions, and a specific reserve for an individual C&I loan. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.10% of total loans. Net Interest Margin and IncomeThe net interest margin of 2.95% for the second quarter of 2024 increased 3 basis points sequentially as higher loan yields began to outpace higher funding costs. On a year-over-year basis, the net interest margin decreased 23 basis points primarily due to higher funding costs from the remix of non-interest bearing deposits into higher tier money market and certificate of deposit accounts. Deposit funding costs were 274 basis points for the second quarter of 2024, and, when including non-interest deposits, deposit funding costs were 195 basis points. Accretion from acquisitions benefited the second quarter net interest margin by 2 basis points, as compared to 3 basis points in the prior year period. Net interest income for the second quarter of 2024 was $116.6 million, a decrease of $5.0 million, or 4.1% year-over-year, reflecting the impact of rising rates on funding costs more than offsetting loan growth and higher loan and securities yields. For the six months ended June 30, 2024, net interest income of $230.6 million decreased $15.3 million, or 6.2%, primarily due to the reasons discussed for the three-month period comparison. Non-Interest IncomeFor the second quarter of 2024, non-interest income of $31.4 million decreased $0.5 million, or 1.5%, from the second quarter of 2023. This decrease was primarily due to 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. Gross swap fees were $1.8 million in the second quarter, as compared to $2.4 million in the prior year period. Service charges on deposits increased $0.9 million year-over-year, reflecting fee income from new products and services and increased general consumer spending. Mortgage banking income increased $0.5 million year-over-year due to an 85 basis point improvement in the net gain on sale margin for residential mortgages sold in the secondary market. Primarily reflecting the items discussed above, as well as higher trust fees, non-interest income, for the six months ended June 30, 2024, increased $2.5 million, or 4.2%, year-over-year to $62.0 million. Trust fees increased $1.0 million year-over-year due to a 10% increase in trust assets, driven by both market value adjustments and organic growth. Non-Interest ExpenseNon-interest expense, excluding restructuring and merger-related costs, for the three months ended June 30, 2024 were $98.6 million, a $2.2 million, or 2.3%, increase year-over-year primarily due to increases in other operating expenses and equipment and software expenses. Other operating expenses increased $1.8 million primarily due to higher costs and fees in support of loan growth and higher other miscellaneous expenses. Equipment and software expense increased $1.6 million reflecting the impact of the prior year ATM upgrades, which were phased in throughout the prior year.  Salaries and wages decreased $0.5 million compared to the prior year period due to lower staffing levels associated with efficiency improvements in the mortgage and branch staffing models, partially offset by normal compensation merit adjustments. Employee benefits decreased $0.9 million due to a lower health insurance costs driven by lower staffing levels, as compared to the prior year period. Excluding restructuring and merger-related expenses, non-interest expense during the first half of 2024 of $195.8 million increased $6.4 million, or 3.4%, compared to the prior year period, due primarily to other operating expenses and equipment and software expense, as described above, and higher FDIC insurance expense. FDIC insurance increased $1.2 million year-over-year due to due to an increase in the minimum rate for all banks. CapitalWesBanco continues to maintain what we believe are strong regulatory capital ratios, as both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators and the BASEL III capital standards. At June 30, 2024, Tier I leverage was 9.72%, Tier I risk-based capital ratio was 11.58%, common equity Tier 1 capital ratio ("CET 1") was 10.58%, and total risk-based capital was 14.45%. In addition, the tangible common equity to tangible assets ratio was 7.52%. Conference Call and WebcastWesBanco will host a conference call to discuss the Company's financial results for the second quarter of 2024 at 10:00 a.m. ET on Friday, July 26, 2024. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com. Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 1-412-902-4290 for international callers, and asking to be joined into the WesBanco call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection. A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 1-412-317-0088 for international callers, and providing the access code of 1675057. The replay will begin at approximately 12:00 p.m. ET on July 26, 2024 and end at 12 a.m. ET on August 9, 2024. An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.wesbanco.com). Forward-Looking StatementsForward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2023 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC") including WesBanco's Form 10-Q for the quarter ended March 31, 2024,  which are available at the SEC's website, www.sec.gov or at WesBanco's website, www.WesBanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance. WesBanco does not assume any duty to update forward-looking statements. Non-GAAP Financial MeasuresIn addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), WesBanco's management uses, and this presentation contains or references, certain non-GAAP financial measures, such as pre-tax pre-provision income, tangible common equity/tangible assets; net income excluding after-tax restructuring and merger-related expenses; efficiency ratio; return on average assets; and return on average tangible equity. WesBanco believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although WesBanco believes that these non-GAAP financial measures enhance investors' understanding of WesBanco's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained therein should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the Quarterly Reports on Forms 10-Q for WesBanco and its subsidiaries, as well as other filings that the company has made with the SEC. About WesBanco, Inc.With over 150 years as a community-focused, regional financial services partner, WesBanco Inc. (NASDAQ:WSBC) and its subsidiaries build lasting prosperity through relationships and solutions that empower our customers for success in their financial journeys. Customers across our eight-state footprint choose WesBanco for the comprehensive range and personalized delivery of our retail and commercial banking solutions, as well as trust, brokerage, wealth management and insurance services, all designed to advance their financial goals. Through the strength of our teams, we leverage large bank capabilities and local focus to help make every community we serve a better place for people and businesses to thrive. Headquartered in Wheeling, West Virginia, WesBanco has $18.1 billion in total assets, with our Trust and Investment Services holding $5.6 billion of assets under management and securities account values (including annuities) of $1.8 billion through our broker/dealer, as of June 30, 2024. Learn more at www.wesbanco.com and follow @WesBanco on Facebook, LinkedIn and Instagram. WESBANCO, INC. Consolidated Selected Financial Highlights Page 5 (unaudited, dollars in thousands, except shares and per share amounts) For the Three Months Ended For the Six Months Ended Statement of Income June 30, June 30, Interest and dividend income 2024 2023 % Change 2024 2023 % Change Loans, including fees $         175,361 $         145,741 20.3 $         342,335 $         279,147 22.6 Interest and dividends on securities: Taxable  16,929 18,483 (8.4) 34,334 37,569 (8.6) Tax-exempt 4,556 4,723 (3.5) 9,142 9,513 (3.9) Total interest and dividends on securities 21,485 23,206 (7.4) 43,476 47,082 (7.7) Other interest income  6,147 7,108 (13.5) 12,516 10,380 20.6           Total interest and dividend income 202,993 176,055 15.3 398,327 336,609 18.3 Interest expense Interest bearing demand deposits 26,925 17,203 56.5 52,516 28,309 85.5 Money market deposits 18,443 7,220 155.4 34,557 11,472 201.2 Savings deposits 7,883 5,860 34.5 15,549 9,860 57.7 Certificates of deposit 11,982 2,906 312.3 22,229 4,109 441.0 Total interest expense on deposits 65,233 33,189 96.6 124,851 53,750 132.3 Federal Home Loan Bank borrowings 16,227 16,713 (2.9) 33,227 28,013 18.6 Other short-term borrowings 896 492 82.1 1,570 909 72.7 Subordinated debt and junior subordinated debt  4,044 4,094 (1.2) 8,119 8,039 1.0 Total interest expense 86,400 54,488 58.6 167,767 90,711 84.9 Net interest income  116,593 121,567 (4.1) 230,560 245,898 (6.2) Provision for credit losses 10,541 3,028 248.1 14,555 6,605 120.4 Net interest income after provision for credit losses 106,052 118,539 (10.5) 216,005 239,293 (9.7) Non-interest income Trust fees 7,303 6,918 5.6 15,385 14,412 6.8 Service charges on deposits 7,111 6,232 14.1 13,895 12,401 12.0 Digital banking income 5,040 5,010 0.6 9,745 9,615 1.4 Net swap fee and valuation income  1,776 2,612 (32.0) 3,339 3,411 (2.1) Net securities brokerage revenue 2,601 2,523 3.1 5,149 5,098 1.0 Bank-owned life insurance 2,791 3,189 (12.5) 4,859 5,149 (5.6) Mortgage banking income 1,069 601 77.9 1,762 1,027 71.6 Net securities gains 135 205 (34.1) 672 350 92.0 Net gains on other real estate owned and other assets 34 871 (96.1) 188 1,104 (83.0) Other income 3,495 3,680 (5.0) 6,990 6,926 0.9 Total non-interest income 31,355 31,841 (1.5) 61,984 59,493 4.2 Non-interest expense Salaries and wages 43,991 44,471 (1.1) 86,988 86,422 0.7 Employee benefits 10,579 11,511 (8.1) 22,763 23,570 (3.4) Net occupancy 6,309 6,132 2.9 12,932 12,775 1.2 Equipment and software 10,457 8,823 18.5 20,465 17,885 14.4 Marketing 2,371 2,763 (14.2) 4,256 5,088 (16.4) FDIC insurance  3,523 2,871 22.7 6,971 5,755 21.1 Amortization of intangible assets 2,072 2,282 (9.2) 4,164 4,583 (9.1) Restructuring and merger-related expense 3,777 35  NM  3,777 3,188 18.5 Other operating expenses   19,313 17,549 10.1 37,269 33,294 11.9 Total non-interest expense 102,392 96,437 6.2 199,585 192,560 3.6 Income before provision for income taxes 35,015 53,943 (35.1) 78,404 106,226 (26.2) Provision for income taxes  6,099 9,063 (32.7) 13,795 19,005 (27.4) Net Income 28,916 44,880 (35.6) 64,609 87,221 (25.9) Preferred stock dividends 2,531 2,531 - 5,063 5,063 - Net income available to common shareholders $           26,385 $           42,349 (37.7) $           59,546 $           82,158 (27.5) Taxable equivalent net interest income $        117,804 $        122,822 (4.1) $        232,990 $        248,427 (6.2) Per common share data Net income per common share - basic $               0.44 $               0.71 (38.0) $               1.00 $               1.39 (28.1) Net income per common share - diluted 0.44 0.71 (38.0) 1.00 1.38 (27.5) Net income per common share - diluted, excluding certain items (1)(2) 0.49 0.71 (31.0) 1.05 1.43 (26.6) Dividends declared 0.36 0.35 2.9 0.72 0.70 2.9 Book value (period end) 40.28 39.10 3.0 40.28 39.10 3.0 Tangible book value (period end) (1) 21.45 20.08 6.8 21.45 20.08 6.8 Average common shares outstanding - basic 59,521,872 59,263,949 0.4 59,452,315 59,240,958 0.4 Average common shares outstanding - diluted 59,656,429 59,385,847 0.5 59,592,960 59,389,314 0.3 Period end common shares outstanding 59,579,310 59,355,062 0.4 59,579,310 59,355,062 0.4 Period end preferred shares outstanding 150,000 150,000 - 150,000 150,000 - (1) See non-GAAP financial measures for additional information relating to the calculation of this item. (2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses. NM = Not Meaningful   WESBANCO, INC. Consolidated Selected Financial Highlights Page 6 (unaudited, dollars in thousands, unless otherwise noted) Selected ratios For the Six Months Ended June 30, 2024 2023 % Change Return on average assets 0.67 % 0.97 % (30.93) % Return on average assets, excluding     after-tax restructuring and merger-related expenses (1) 0.71 1.00 (29.00) Return on average equity 4.71 6.69 (29.60) Return on average equity, excluding     after-tax restructuring and merger-related expenses (1) 4.94 6.90 (28.41) Return on average tangible equity (1) 8.89 12.86 (30.87) Return on average tangible equity, excluding      after-tax restructuring and merger-related expenses (1) 9.31 13.23 (29.63) Return on average tangible common equity (1) 9.90 14.40 (31.25) Return on average tangible common equity, excluding      after-tax restructuring and merger-related expenses (1) 10.37 14.82 (30.03) Yield on earning assets (2)  5.04 4.46 13.00 Cost of interest bearing liabilities 3.05 1.84 65.76 Net interest spread (2) 1.99 2.62 (24.05) Net interest margin (2) 2.93 3.27 (10.40) Efficiency (1) (2) 66.38 61.50 7.93 Average loans to average deposits 89.04 84.46 5.42 Annualized net loan charge-offs/average loans 0.14 0.05 180.00 Effective income tax rate  17.59 17.89 (1.68) For the Three Months Ended June 30, Mar. 31, Dec. 31, Sept. 30, June 30, 2024 2024 2023 2023 2023 Return on average assets 0.59 % 0.75 % 0.74 % 0.78 % 0.98 % Return on average assets, excluding     after-tax restructuring and merger-related expenses (1) 0.66 0.75 0.74 0.80 0.98 Return on average equity 4.17 5.24 5.21 5.49 6.81 Return on average equity, excluding     after-tax restructuring and merger-related expenses (1) 4.65 5.24 5.21 5.57 6.82 Return on average tangible equity (1) 7.93 9.85 10.11 10.60 12.98 Return on average tangible equity, excluding      after-tax restructuring and merger-related expenses (1) 8.78 9.85 10.11 10.75 12.99 Return on average tangible common equity (1) 8.83 10.96 11.32 11.87 14.52 Return on average tangible common equity, excluding      after-tax restructuring and merger-related expenses (1) 9.77 10.96 11.32 12.03 14.53 Yield on earning assets (2)  5.11 4.98 4.88 4.72 4.59 Cost of interest bearing liabilities 3.12 2.98 2.76 2.52 2.15 Net interest spread (2) 1.99 2.00 2.12 2.20 2.44 Net interest margin (2) 2.95 2.92 3.02 3.03 3.18 Efficiency (1) (2)  66.11 66.65 66.75 64.95 62.33 Average loans to average deposits 89.40 88.67 87.07 86.79 85.44 Annualized net loan charge-offs and recoveries /average loans 0.07 0.20 0.06 0.01 0.02 Effective income tax rate  17.42 17.74 19.66 16.83 16.80 Trust and Investment Services assets under management (3) $            5,633 $            5,601 $            5,360 $            4,982 $            5,127 Broker-dealer securities account values (including annuities) (3) $            1,780 $            1,751 $            1,686 $            1,600 $            1,596 (1) See non-GAAP financial measures for additional information relating to the calculation of this item. (2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully      taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt     loans and investments.   WesBanco believes this measure to be the preferred industry measurement of net interest income and    provides a relevant comparison between taxable and non-taxable amounts. (3) Represents market value at period end, in millions.