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Dec 31, 2019
WesBanco Q4 2019 Earnings Report
Net income decreased due to merger-related expenses and the Durbin amendment impact.
Key Takeaways
WesBanco reported a decrease in net income for Q4 2019 compared to Q4 2018, primarily due to merger-related expenses and the impact of the Durbin amendment, which limits interchange fees for debit card processing. However, the company saw growth in mortgage banking income and overall solid execution on its strategies.
Net income for the quarter was $36.4 million, or $0.60 per diluted share, compared to $43.9 million, or $0.80 per diluted share, for the fourth quarter of 2018.
Net income excluding after-tax merger-related expenses increased 1.0% year-over-year to $45.5 million, or $0.75 per diluted share.
Mortgage banking income increased 91.6% year-over-year for the quarter.
WesBanco consummated the merger with Old Line Bancshares, Inc. on November 22, 2019.
WesBanco
WesBanco
Forward Guidance
WesBanco is focusing on organic growth and the successful integration of its Mid-Atlantic franchise.
Positive Outlook
- Well-positioned for long-term success.
- Positive about opportunities for the upcoming year.
- Focusing internally on organic growth.
- Ensuring a successful integration of our Mid-Atlantic franchise.
- Maintaining a strong commitment to client service and community banking
Challenges Ahead
- Businesses of WesBanco and Old Line may not be integrated successfully or such integration may take longer to accomplish than expected
- The expected cost savings and any revenue synergies from the merger of WesBanco and Old Line may not be fully realized within the expected timeframes
- Disruption from the merger of WesBanco and Old Line may make it more difficult to maintain relationships with clients, associates, or suppliers
- Changes in accounting standards, rules and interpretations such as the new CECL standard, and the impact on WesBanco’s financial statements
- Potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities