WHEELING, W.Va. - WesBanco , Inc. (NASDAQ: NASDAQ:WSBC), a regional bank holding company, announced a 2.8% increase in its quarterly cash dividend. The new dividend of $0.37 per common share is up from the previous $0.36. Shareholders of record as of December 6, 2024, will receive the dividend on January 2, 2025.
This latest increase marks the eighteenth hike in WesBanco's quarterly dividend since 2010, reflecting a cumulative rise of 164% over the last fourteen years. The decision by the Board of Directors to raise the dividend is attributed to the company's solid capital position and net income performance.
With the new dividend rate, the annualized cash dividend comes to $1.48 per common share. Based on the closing stock price of $35.26 on the day before the announcement, the new dividend rate suggests a yield of approximately 4.2%.
WesBanco, with a history spanning over 150 years, operates as a community-focused financial services partner in an eight-state region. The company offers a range of retail and commercial banking services, in addition to trust, brokerage, wealth management, and insurance services. As of September 30, 2024, WesBanco reported $18.5 billion in total assets, with its Trust and Investment Services managing $6.1 billion in assets under management and securities account values (including annuities) of $1.9 billion.
The information for this article is based on a press release statement from WesBanco, Inc.
In other recent news, WesBanco has been experiencing a series of positive developments. The financial services firm Stephens increased the price target for WesBanco shares to $34.00, maintaining an Equal Weight rating. This adjustment follows WesBanco's recent earnings report, which surpassed expectations with an operating EPS of $0.56. The bank's core pre-provision net revenue (PPNR) of $52.3 million was nearly in line with consensus estimates. Additionally, the net interest margin (NIM) for WesBanco remained stable, with projections of a slight increase in the fourth quarter.
WesBanco also reported a strong financial performance in its third quarter 2024 earnings call, with a net income of $36.3 million. The company saw significant growth in loans and deposits, and successfully raised $200 million in common equity. Furthermore, the acquisition of Premier Financial Corp. is expected to close in the first quarter of 2025, which Stephens noted accelerates the earnings potential of WesBanco.
These recent developments highlight WesBanco's commitment to growth and operational efficiency. The company expects continued loan growth and a modest improvement in net interest margin. Despite a decrease in non-interest income due to a negative adjustment in swap fees, WesBanco remains optimistic about its future performance.
InvestingPro Insights
WesBanco's recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has maintained dividend payments for an impressive 48 consecutive years and has raised its dividend for 13 consecutive years. This consistency underscores WesBanco's commitment to returning value to shareholders, even in challenging economic environments.
The new dividend yield of approximately 4.2% based on the recent stock price is slightly higher than the 4.08% yield reported by InvestingPro, reflecting the latest increase. This attractive yield, combined with the company's price-to-book ratio of 0.88, suggests that WesBanco may be undervalued relative to its assets.
InvestingPro Tips highlight that WesBanco has shown a strong return over the last three months, with data confirming a 15.96% price total return in that period. This recent performance, along with a 26.67% return over the past six months, indicates growing investor confidence in the company's prospects.
While the company's revenue growth has been modest, with a 2.62% increase in the most recent quarter, WesBanco maintains a robust operating income margin of 34.37%. This efficiency in operations supports the company's ability to continue its dividend growth strategy.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights on WesBanco's financial health and market position. There are 8 more InvestingPro Tips available for WSBC, providing a deeper understanding of the company's strengths and potential challenges.
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