WesBanco in Wheeling, W. Va., reported higher quarterly net income because of loan growth and a lower cost of funds.
Net income in the second quarter rose 11% from a year earlier, to $18.9 million. Earnings per share of 64 cents beat the average estimate of analysts polled by Bloomberg by 8 cents.
Total assets increased by 3%, to $6.3 billion. Loan growth was achieved through $1.4 billion in loan originations in the last year. A 4% increase in deposits, to $260 million, also helped fund loan growth. WesBanco said in a press release that all deposits, excluding certificates of deposit, were up from a year ago.
Service charges on deposits fell 9%, to $4.1 million, because to lower overdraft fees.
Net interest income rose 5%, to $48.3 million, largely because of a 3% increase in average earning assets. The net interest margin expanded by 8 basis points, to 3.64%.
Noninterest income increased 3%, to $18.2 million, aided by a $1 million bank-owned life insurance death benefit. Trust fees rose 8% as assets under management increased from customer development initiatives and overall market improvements.
Noninterest expenses jumped 2%, to $40.3 million, mainly because of higher salaries and increased marketing.
WesBanco reported $600,000 in net chargeoffs, compared to $2.4 million a year earlier. The loan-loss provision was $849,000, compared to $1 million a year earlier.