Group 1 - WesBanco, Inc. declared a quarterly cash dividend of $0.421875 per depositary share on its 6.75% Non-Cumulative Perpetual Preferred Stock, Series A, for the period from August 15, 2024, to November 15, 2024 [1] - The total cash dividend amounts to $16.875 per share of the Series A Preferred Stock outstanding, payable on November 15, 2024, to shareholders of record on November 1, 2024 [1] Group 2 - WesBanco, Inc. has over 150 years of experience as a community-focused regional financial services partner, offering a comprehensive range of retail and commercial banking solutions [2] - The company has total assets of $18.1 billion, with Trust and Investment Services holding $5.6 billion in assets under management and securities account values of $1.8 billion as of June 30, 2024 [2]

Group 1 - WesBanco, Inc. declared a quarterly cash dividend of $0.36 per share, payable on October 1, 2024, to shareholders of record on September 6, 2024, representing an annualized cash dividend rate of $1.44 per common share [1] - WesBanco has over 150 years of experience as a community-focused regional financial services partner, offering a comprehensive range of retail and commercial banking solutions, as well as trust, brokerage, wealth management, and insurance services [2] - As of June 30, 2024, WesBanco has total assets of $18.1 billion, with Trust and Investment Services holding $5.6 billion in assets under management and securities account values of $1.8 billion [2]

Core Insights - WesBanco, Inc. has been recognized as one of America's Greatest Workplaces for Parents and Families 2024 by Newsweek, receiving a five-star rating, making it one of only seven banks to achieve this distinction [1][2] Company Overview - WesBanco is a diversified, multistate bank holding company with over 150 years of experience, focusing on community financial services [6] - The company has total assets of $18.1 billion, with Trust and Investment Services holding $5.6 billion in assets under management and securities account values of $1.8 billion as of June 30, 2024 [7] Employee Engagement and Workplace Culture - WesBanco fosters a supportive and inclusive workplace culture, emphasizing family-friendly policies, flexible work arrangements, and wellness initiatives [3] - In a 2023 employee engagement survey, approximately 90% of respondents recommended WesBanco as a great place to work, indicating high employee satisfaction [3] Industry Context - The recognition comes at a time when 67% of married-couple families with children have both parents employed, an increase from 65% the previous year, highlighting the growing need for supportive workplace environments [4] - A study from The Ohio State University indicated that 66% of working parents reported feeling burned out, underscoring the importance of work-life balance [4][5]

Financial Data and Key Metrics Changes - For the second quarter of 2024, the company reported GAAP net income available to common shareholders of $26.4 million or $0.44 per share, down from $42.4 million or $0.71 per diluted share in the prior year period [40] - The return on average assets increased by 30 basis points to 1.2%, and return on average tangible common equity improved by 557 basis points to 16.9% [22] - Total assets surpassed $18 billion for the first time, driven by portfolio loans of $12.3 billion, which grew 10% year-over-year and 13% linked quarter annualized [12][10] Business Line Data and Key Metrics Changes - Noninterest income for the second quarter of 2024 was $31.4 million, a decrease of $500,000 or 1.5% from the prior year, primarily due to lower net swap fee and valuation income [14] - The provision for credit losses was $10.5 million, influenced by strong loan growth and macroeconomic changes [12] - Noninterest expense for the three months ended June 30, 2024, totaled $98.6 million, a 2.3% increase year-over-year [14] Market Data and Key Metrics Changes - Deposits totaled $13.4 billion, down 0.5% linked quarter but up 4.4% year-over-year [41] - The commercial loan pipeline as of June 30 was approximately $950 million, up 30% from a year ago [12] - The company maintained a consistent mix of total demand deposits and noninterest-bearing deposits, representing approximately 55% and 28.5% of total deposits, respectively [41] Company Strategy and Development Direction - The long-term growth strategy focuses on building a diversified loan portfolio, enhancing revenue capabilities, and expanding digital banking services [17] - The proposed merger with Premier Financial Corporation aims to create a community-focused regional financial service partner with over $27 billion in assets [37][49] - The merger is expected to provide significant economies of scale and improve financial performance metrics [29][50] Management's Comments on Operating Environment and Future Outlook - Management anticipates non-interest income to remain consistent with second quarter trends, while expenses will be impacted by midyear merit increases and a marketing campaign [16] - The provision for credit losses is expected to be somewhat lower than the second quarter, depending on loan growth and economic factors [16] - Management expressed optimism about the merger's potential to enhance customer service and product delivery with minimal employee disruption [20] Other Important Information - The merger is a 100% stock deal at a fixed exchange ratio of 0.80 shares of WesBanco for each share of Premier [25] - One-time merger expenses are anticipated to be $72 million, primarily driven by contract termination charges and integration expenses [27] - The company plans to invest approximately $13 million into the branch network for upgrades and rebranding [140] Q&A Session Summary Question: Can you talk about the process of getting to know Premier better? - Management highlighted the cultural fit and synergies identified during discussions, emphasizing the compatibility of their deposit bases and growth markets [32] Question: What are the risks if rate cuts take longer to come? - Management indicated that the combined entity would remain slightly asset sensitive, benefiting from rate cuts due to the mix of loan portfolios [62] Question: Can you discuss the decision to raise capital? - The capital raise was evaluated to maintain a leverage ratio above 8.5% and a CET1 above 9.5%, ensuring comfort with pro forma ratios [88] Question: What opportunities exist for fee income with Premier? - Management noted potential for growth in treasury products and swap opportunities, leveraging the larger balance sheet [99] Question: When do you anticipate the transaction closing? - The transaction is expected to close in the first quarter of next year, pending regulatory approvals [106]

Core Insights - WesBanco reported quarterly earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.54 per share, and down from $0.71 per share a year ago, representing an earnings surprise of -9.26% [1] - The company posted revenues of $149.16 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.51%, but down from $154.66 million year-over-year [2] - The stock has added about 9.3% since the beginning of the year, compared to the S&P 500's gain of 13.2% [4] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.54 on revenues of $151.55 million, and for the current fiscal year, it is $2.21 on revenues of $596.1 million [8] - The estimate revisions trend for WesBanco is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Zacks Industry Rank for Banks - Southeast is in the top 37% of over 250 Zacks industries, suggesting that the industry is performing relatively well [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Core Viewpoint - WesBanco, Inc. and Premier Financial Corp. have announced a definitive merger agreement that will create a regional financial services institution with over $27 billion in assets, enhancing their market presence and operational efficiencies [1][3][10]. Merger Details - The merger will involve WesBanco exchanging shares of its common stock for all outstanding shares of Premier common stock, valued at approximately $959 million, or $26.66 per share, based on WesBanco's closing stock price of $33.32 as of July 24, 2024 [10]. - The transaction is expected to be tax-free and has been unanimously approved by the boards of directors of both companies [10][21]. - Upon completion, Premier shareholders will receive 0.80 of a share of WesBanco common stock for each share of Premier common stock they own [10]. Financial Aspects - WesBanco plans to raise $200 million in capital to support the merger, led by a $125 million investment from Wellington Management [2]. - The merger is anticipated to be more than 40% accretive to 2025 earnings, with an estimated tangible book value dilution at closing of 13%, expected to be earned back in approximately 2.8 years [21]. Strategic Fit - The merger is characterized by highly compatible cultures and business models, aiming to create significant economies of scale and strong pro forma profitability metrics [3][12]. - The combined entity will have an increased presence in Ohio, Indiana, and serve customers across nine states, expanding WesBanco's franchise by 73 financial centers [4][3]. Operational Impact - Upon completion, WesBanco will operate more than 250 financial centers and loan production offices across nine states, enhancing its service delivery capabilities [4]. - The merger is expected to facilitate growth and increased investment in products and services, benefiting customers, associates, shareholders, and communities [4]. Shareholder Structure - After the merger, shares issued to Premier shareholders are expected to comprise 30% of the outstanding shares of the combined company, while shares from the capital raise will represent 8% [23]. - Legacy WesBanco shareholders are expected to hold 62% of the outstanding shares post-merger [23]. Historical Context - WesBanco has a history of over 150 years as a community-focused financial services partner, with total assets of approximately $18.1 billion as of June 30, 2024 [9][13]. - Premier Financial Corp. has consolidated assets of approximately $8.8 billion, with a strong presence in Ohio, Michigan, Indiana, and Pennsylvania [25].

Financial Performance - For Q2 2024, WesBanco reported net income of $26.4 million, or $0.44 per diluted share, down from $42.3 million, or $0.71 per diluted share in Q2 2023, reflecting a year-over-year decrease of 37.8% in net income [17]. - Net income available to common shareholders (GAAP) for the second quarter of 2024 was $26,385,000, a decrease from $42,349,000 in the same period of 2023 [18]. - Net income available to common shareholders decreased by 37.7% to $26,385,000 for the three months ended June 30, 2024, down from $42,349,000 in the prior year [40]. - Net income per common share - diluted fell by 38.0% to $0.44 for the three months ended June 30, 2024, compared to $0.71 in the same period last year [40]. - The return on average tangible common equity for the six months ended June 30, 2024, was 9.90%, down from 14.40% in the prior year [29]. - Return on average assets, excluding after-tax restructuring and merger-related expenses, was 0.66% for the quarter ended June 30, 2024, compared to 0.98% for the same quarter last year [46]. - Return on average equity, excluding after-tax restructuring and merger-related expenses, was 4.65% for the quarter ended June 30, 2024, down from 6.82% in the same quarter last year [46]. - The annualized return on average assets, excluding certain items, was 1.11% for the quarter ended June 30, 2024, compared to 1.32% a year earlier [48]. - The annualized return on average equity, excluding certain items, was 7.80% for the quarter ended June 30, 2024, down from 9.17% in the same quarter last year [48]. Loan and Deposit Growth - Portfolio loans increased to $12.3 billion, a rise of $1.1 billion, or 10.1%, year-over-year, driven by strong performance in commercial and residential lending [2]. - Total commercial loans reached $8.8 billion, marking an increase of 11.5% year-over-year and 15.2% quarter-over-quarter annualized [2]. - Total loan growth was 10.1% year-over-year, with total loans increasing by $1.1 billion compared to the prior year, driven by both commercial and residential lending [18]. - Deposits as of June 30, 2024, were $13.4 billion, reflecting a 4.4% increase year-over-year [19]. - Total deposits rose by 4.4% to $13,432,373 from $12,861,434 year-over-year [30]. Income and Expenses - Net interest income for Q2 2024 was $116.6 million, a decrease of $5.0 million, or 4.1%, year-over-year, primarily due to rising funding costs [4]. - Non-interest income for Q2 2024 was $31.4 million, down $0.5 million, or 1.5%, from the same period in 2023, mainly due to lower net swap fee income [5]. - Non-interest expense for the first half of 2024 was $195.8 million, an increase of $6.4 million, or 3.4%, compared to the prior year, driven by higher operating expenses and FDIC insurance costs [7]. - Non-interest expense for the quarter ended June 30, 2024, was $102,392, an increase from $97,191 in the previous quarter [35]. - Total non-interest income for the three months ended June 30, 2024, was $31,355,000, a slight decrease of 1.5% from $31,841,000 in the prior year [40]. - Total interest expense increased by 58.6% to $86,400,000 for the three months ended June 30, 2024, compared to $54,488,000 in the same period last year [40]. Credit Quality - The provision for credit losses increased, negatively impacting diluted earnings per share by approximately $0.09, primarily due to strong loan growth and macroeconomic changes [18]. - The provision for credit losses for the second quarter of 2024 was $10.541 million, up from $4.803 million in the same quarter of 2023, indicating a significant increase in credit loss provisions [36]. - Allowance for credit losses increased to 1.11% of total loans, amounting to $136.5 million as of June 30, 2024 [20]. - Non-performing assets as a percentage of total assets remained stable at 0.20% [20]. - Total non-performing loans increased to $35,468 thousand from $32,919 thousand in the previous quarter, reflecting a rise of 4.2% [45]. - Total past due loans increased to $29,408 thousand from $23,923 thousand, showing a rise of 23.0% [45]. - The ratio of allowance for credit losses on loans to total portfolio loans was 1.11%, up from 1.09% in the previous quarter [45]. Capital Ratios - As of June 30, 2024, WesBanco maintained strong regulatory capital ratios, with a Tier I leverage ratio of 9.72% and a total risk-based capital ratio of 14.45% [8]. - Tier I risk-based capital ratio decreased to 11.58% from 12.12% year-over-year [34]. - Common equity tier 1 capital ratio (CET1) decreased to 10.58% from 11.04% year-over-year [34]. Asset Management - Total assets increased by 4.4% to $18,128,375 compared to $17,356,954 in the previous year [30]. - Total assets reached $18,128,375, up from $17,772,735 in the previous quarter [35]. - Average total assets for the second quarter of 2024 were $17.890 billion, an increase from $17.426 billion in the same quarter of 2023 [36]. - WesBanco reported total assets of $18.1 billion as of June 30, 2024, with Trust and Investment Services holding $5.6 billion in assets under management [39].

Core Insights - WesBanco, Inc. reported a net income of $26.4 million for Q2 2024, down from $42.3 million in Q2 2023, with diluted earnings per share of $0.44 compared to $0.71 in the prior year [9][10] - For the first half of 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 same period in 2023 [9][10] - The company experienced a total loan growth of 10.1% year-over-year, with total loans increasing by $1.1 billion [10][11] Financial Performance - Total interest and dividend income for Q2 2024 was $202.993 million, a 15.3% increase from $176.055 million in Q2 2023 [1] - Net interest income for Q2 2024 was $116.593 million, a decrease of 4.1% year-over-year [12] - Non-interest income for Q2 2024 was $31.4 million, a decrease of 1.5% from the previous year [13] Balance Sheet Highlights - As of June 30, 2024, total assets were $18.128 billion, reflecting a 2.0% increase from the previous quarter [8] - Total deposits were $13.432 billion, a slight decrease of 0.5% year-over-year [8] - Portfolio loans reached $12.3 billion, up 10.1% year-over-year, driven by strong commercial and residential lending [10][11] Credit Quality - The allowance for credit losses increased to 1.11% of total loans, with a provision for credit losses of $10.5 million in Q2 2024 [11] - Non-performing assets as a percentage of total assets remained low at 0.20% [11] Capital Ratios - As of June 30, 2024, WesBanco maintained strong regulatory capital ratios, with a Tier I risk-based capital ratio of 11.58% and a common equity Tier 1 capital ratio of 10.58% [14]

Core Insights - WesBanco, Inc. has received the 2024 Designation of Savings Excellence (DOSE) award for the ninth consecutive year, recognizing its significant impact during America Saves Week [1][2] - The bank enrolled over 1,800 individuals in its Savers program, which provides financial literacy resources, and launched a partnership with Veteran Saves to support the veteran community [2][3] - WesBanco's initiatives include financial literacy outreach and the Split-to-Save program, promoting savings year-round through various educational programs [3][4] Company Achievements - WesBanco is one of only nine banks to receive the DOSE award out of more than 4,600 participating organizations [1] - The bank has received multiple accolades for its soundness, profitability, customer service, and community development, including an "Outstanding" FDIC Community Reinvestment Act rating [4] - As of March 31, 2023, WesBanco manages approximately $5 billion in assets through its Trust and Investment Services department [10] Industry Impact - During America Saves Week, participating financial institutions collectively encouraged nearly $354 million in deposits and opened 231,000 new accounts [9] - The efforts of financial institutions like WesBanco contribute to individual financial security and the overall economic stability of the nation [4][9]

Core Insights - WesBanco has been recognized as one of America's Greatest Workplaces for 2024 by Newsweek, receiving a four-and-a-half out of five-star rating and ranking among fewer than 30 banks across nearly 80 business sectors [7][2] Company Initiatives - WesBanco emphasizes a workplace culture that fosters purpose, belonging, and opportunity, with initiatives including a Diversity, Equity, and Inclusion (DEI) Council, employee resource groups, and annual symposiums [2][8] - The company has implemented health and wellness initiatives to promote healthy habits among employees and their families [2] - Flexible work arrangements, including remote and hybrid options, are provided to support work-life balance [2] - WesBanco offers talent and leadership development programs for all organizational levels, along with structured talent review and succession planning [2] - Noteworthy incentive plans are in place to reward employee accomplishments, alongside an educational assistance program for continuing education [2] Employee Engagement - WesBanco's recognition is notable given the national trend of declining employee engagement, with a Gallup poll indicating that U.S. worker engagement has fallen to 30 percent, a three percentage point decrease from the previous quarter [3] - In a 2023 employee engagement survey, nearly 95 percent of respondents reported high satisfaction with their work, and approximately 90 percent would recommend WesBanco as a great workplace [8] Recognition Process - The recognition by Newsweek and Plant-A Insights was based on a large-scale survey of over 250,000 U.S. employees, resulting in 1.5 million company reviews covering various aspects such as compensation, benefits, training, work-life balance, and company culture [11]