29 April 2025 Forward-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, 2024 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), which are ava ...

Core Insights - WesBanco reported $194.39 million in revenue for Q1 2025, a year-over-year increase of 33.3% [1] - The EPS for the same period was $0.66, up from $0.56 a year ago, exceeding the consensus estimate of $0.60 by 10% [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $186.97 million by 3.97% [1] - Net Interest Margin was reported at 3.4%, above the average estimate of 3.1% [4] - Efficiency Ratio stood at 58.6%, better than the average estimate of 61.9% [4] - Total non-performing loans were $81.49 million, lower than the average estimate of $94.38 million [4] - Net Interest Income was $158.52 million, surpassing the estimate of $156.27 million [4] Other Key Metrics - Total Non-Interest Income was $34.67 million, slightly below the estimate of $35.53 million [4] - Mortgage banking income was $1.14 million, compared to the average estimate of $1.55 million [4] - Service charges on deposits were $8.59 million, lower than the estimate of $8.97 million [4] - The stock has returned -3.8% over the past month, compared to the S&P 500's -0.8% change [3]

Core Insights - WesBanco (WSBC) reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.60 per share, and up from $0.56 per share a year ago, representing a 10% earnings surprise [1] - The company posted revenues of $194.39 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.97%, and up from $145.81 million year-over-year [2] - WesBanco has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of WesBanco's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $255.39 million, and for the current fiscal year, it is $3.30 on revenues of $969.77 million [7] Industry Context - The Banks - Southeast industry, to which WesBanco belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Core Viewpoint - WesBanco, Inc. reported a net loss of $11.5 million for Q1 2025, primarily due to the acquisition of Premier Financial Corp. and associated credit loss provisions, despite strong organic loan and deposit growth [1][4]. Financial Performance - Net income available to common shareholders, excluding certain provisions and expenses, was $51.2 million, or $0.66 per share, compared to $33.2 million, or $0.56 per share, in Q1 2024 [1][3]. - Total interest income for Q1 2025 was $253.2 million, a 29.6% increase year-over-year, driven by higher loan and securities yields [23]. - Net interest income increased by 39.1% year-over-year to $158.5 million, reflecting the larger balance sheet from the PFC acquisition [10][23]. Acquisition Impact - The acquisition of Premier Financial Corp. added $5.9 billion in loans and $6.9 billion in deposits, significantly boosting WesBanco's total assets to $27.4 billion, a 54.2% increase year-over-year [5][11]. - The acquisition is expected to enhance WesBanco's market position and long-term growth strategy [4]. Loan and Deposit Growth - Total portfolio loans increased by 57.3% year-over-year to $18.7 billion, with organic growth contributing $0.9 billion [5][11]. - Total deposits rose by 57.8% year-over-year to $21.3 billion, with organic deposit growth of $922 million, or 6.8% [6][11]. Credit Quality - As of March 31, 2025, total loans past due as a percentage of the loan portfolio decreased to 0.43%, indicating stable credit quality [8]. - The allowance for credit losses was $233.6 million, with a coverage ratio of 1.25% [2][8]. Balance Sheet Strength - Total assets reached $27.4 billion, with total securities increasing by 30.1% year-over-year to $4.3 billion [5][28]. - The efficiency ratio improved to 58.6%, reflecting better expense management and the benefits of the PFC acquisition [11][25]. Capital Position - WesBanco's capital ratios remain strong, with a Tier I leverage ratio of 11.01% and a common equity Tier 1 capital ratio of 9.99% as of March 31, 2025 [14].

Core Viewpoint - WesBanco (WSBC) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations [1]. Group 1: Earnings Performance - WesBanco has a solid track record of surpassing earnings estimates, with an average surprise of 19.59% over the last two quarters [2]. - In the most recent quarter, WesBanco reported earnings of $0.71 per share, exceeding the expected $0.54 per share, resulting in a surprise of 31.48% [3]. - For the previous quarter, the company reported $0.56 per share against an estimate of $0.52 per share, achieving a surprise of 7.69% [3]. Group 2: Earnings Estimates and Predictions - Recent changes in earnings estimates for WesBanco have been favorable, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7]. - WesBanco currently has an Earnings ESP of +0.42%, suggesting increased analyst optimism regarding its near-term earnings potential [9]. Group 3: Upcoming Earnings Report - The next earnings report for WesBanco is anticipated to be released on April 29, 2025 [9].

Group 1 - WesBanco, Inc. (NASDAQ: WSBC) is rated as a "Buy" due to the recent "Tariff Selloff" which has led the stock to trade at 8.4x Price to Earnings Forward (Non-GAAP) [1] - There is a potential upside of 20% for WesBanco's stock over the next 12 months [1]

Financial Results Announcement - Wesbanco, Inc. will release its financial results for Q1 2025 after market close on April 29, 2025[6] - A conference call to discuss the Q1 2025 financial results is scheduled for April 30, 2025, at 9:00 a.m. ET[6] - The financial results will provide insights into the company's operational performance and financial condition for the first quarter[6] - The scheduled conference call will allow management to address investor questions and provide further insights into future strategies[6] - The press release regarding the financial results is attached as Exhibit 99.1[6] Stock Information - The company’s common stock is traded on the Nasdaq Global Select Market under the symbol WSBC[4] - The company’s preferred stock is also traded on the Nasdaq Global Select Market under the symbol WSBCP[4] Compliance and Reporting - The company is not classified as an emerging growth company under the Securities Act of 1933[5] - The company has not indicated any changes to its accounting standards compliance[5] - The report was signed by Daniel K. Weiss, Jr., Senior Executive Vice President and CFO[9]

Core Points - WesBanco, Inc. will host a conference call on April 30, 2025, to review its financial results for the first quarter of 2025 [1] - The financial results are expected to be released after market close on April 29, 2025 [1] Access Information - Interested parties can access the live webcast through the Investor Relations section of WesBanco's website or by dialing specific numbers for participation [2] - A replay of the conference call will be available starting at 12:00 p.m. ET on April 30, 2025, and will end at 12 a.m. ET on May 14, 2025 [3] Company Overview - WesBanco, Inc. has over 150 years of experience as a community-focused financial services partner, with total assets exceeding $27 billion [4] - The company offers a comprehensive range of services including retail and commercial banking, trust, brokerage, wealth management, and insurance [4] - WesBanco's Trust and Investment Services manage over $7 billion in assets, with securities account values exceeding $2 billion [4]

Core Viewpoint - WesBanco (WSBC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For WesBanco, the rising earnings estimates suggest an improvement in the company's underlying business, likely leading to increased stock prices as investors respond to this trend [5][8]. Earnings Estimate Revisions - WesBanco is projected to earn $3.42 per share for the fiscal year ending December 2025, representing a year-over-year increase of 46.2% [8]. - Over the past three months, the Zacks Consensus Estimate for WesBanco has increased by 10.5%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of WesBanco to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Financial Performance - For the twelve months ended December 31, 2024, net income available to common shareholders was $141.4 million, or $2.26 per diluted share, compared to $148.9 million, or $2.51 per diluted share for the same period in 2023, reflecting a decrease due to higher funding costs and inflationary pressures[208]. - Interest income increased by $114.1 million or 16.0% to $825.6 million in 2024 compared to 2023, while net interest income decreased by $3.1 million or 0.7% primarily due to higher funding costs[208]. - Total assets as of December 31, 2024, were $18.7 billion, an increase of 5.5% compared to December 31, 2023[209]. - Total portfolio loans increased to $12.7 billion, reflecting an 8.7% increase year-over-year from $11.6 billion at December 31, 2023[209]. - Total deposits increased by $965.0 million or 7.3% at December 31, 2024, compared to December 31, 2023, supporting loan growth[209]. - Criticized and classified loan balances increased to 2.80% of total portfolio loans, up from 2.22% at December 31, 2023[209]. - Tier I leverage ratio was 10.68%, Tier I risk-based capital was 13.06%, total risk-based capital was 15.88%, and common equity Tier 1 capital ratio was 12.07% as of December 31, 2024, indicating strong regulatory capital ratios[210]. - The quarterly dividend was increased to $0.37 per share in Q4 2024, marking the eighteenth increase over the last fourteen years, representing a cumulative increase of 164%[211]. Assets and Liabilities - As of December 31, 2024, Wesbanco's total assets were approximately $18.7 billion, with assets under management in the trust and investment services segment valued at around $6.0 billion[14]. - Wesbanco had $131.0 million in junior subordinated debt on its balance sheets as of December 31, 2024, with $126.9 million included in Tier 2 capital[58]. - Wesbanco's goodwill was approximately $1.1 billion, representing 39% of stockholders' equity as of December 31, 2024, which may require future impairment testing[124]. - Wesbanco's total assets increased above $15 billion due to recent acquisitions, affecting the inclusion of certain trust preferred securities in Tier 1 capital[149]. Employee and Corporate Culture - The company employed 2,195 full-time equivalent employees as of December 31, 2024, with an overall turnover rate of 17%[27]. - The average tenure of Wesbanco's full-time employees was approximately 10 years, while executive officers had an average tenure of over 18 years[27]. - Over 10% of Wesbanco's employees were minorities, with 56% of total officers being women[28]. - Wesbanco's corporate culture emphasizes customer and employee-centric values, focusing on long-term relationships and community stewardship[29]. Community Engagement and Philanthropy - In 2024, Wesbanco provided philanthropic donations and sponsorships totaling over $1.0 million, contributing nearly 12,000 volunteer hours to local organizations[32]. - Wesbanco's community development strategies focus on providing targeted investment and financial education to promote financial inclusion[85]. - Wesbanco CDC has made over 240 loans totaling in excess of $184 million, creating over 7,100 jobs in low-income communities[88]. - In the past five years, Wesbanco originated nearly $2.4 billion in community development loans, including over $520 million in 2024[89]. - Wesbanco employees provided nearly 12,000 hours of technical assistance and financial education to over 640 organizations and schools in 2024[90]. - Wesbanco's community development programs are supported by partnerships with governmental and non-profit agencies to assist low- and moderate-income consumers[89]. Regulatory and Compliance - The company is subject to enhanced prudential supervision due to its asset size exceeding $10 billion, ensuring compliance with safety and soundness regulations[36]. - The Federal Reserve's minimum capital levels require a CET1 of at least 4.5%, a Tier 1 capital ratio of at least 6%, and a total capital ratio of at least 8%[53]. - The Dodd-Frank Act requires annual company-run stress tests for bank holding companies with total consolidated assets greater than $100 billion, but Wesbanco is not subject to these rules as it has less than $100 billion in average total consolidated assets[74][75]. - The Dodd-Frank Act mandates that financial institutions retain at least 5% of the credit risk in securitizations, which may affect Wesbanco's funding strategies[78]. - Wesbanco's assets exceeded $10 billion for four consecutive quarters, bringing it under the supervision of the Consumer Financial Protection Bureau (CFPB) in 2019[80]. Risk Management - The company is enhancing its climate risk considerations into its risk management strategies to address potential impacts from climate change[100]. - Wesbanco's ability to mitigate risk depends on its enterprise risk management framework, which is crucial for managing various types of risks[151]. - Wesbanco is exposed to operational risks, including reputational risk and the risk of fraud or theft, which could adversely impact its business[145]. - The integration of future acquisitions may not be successful, potentially leading to a material adverse effect on the company's financial condition[142]. - Wesbanco's financial performance may be adversely affected if it fails to keep pace with technological changes in the financial services industry[158]. Competition and Market Position - The market for Wesbanco's trust and investment services faces intense competition from various financial institutions, impacting its market share growth potential[33]. - The company faces significant competition from local, regional, and national banks, as well as financial technology companies, which may impact its ability to attract and retain customers[136]. - Wesbanco's competitive position may be challenged by the introduction of new payment system technologies and cryptocurrency by competitors[136]. Acquisitions and Growth Strategy - Wesbanco completed the acquisition of Premier Financial Corp. on February 28, 2025, expanding its presence in Ohio and surrounding states[25]. - The anticipated cost savings and synergies from the acquisition of Premier Financial depend on successful integration, which may face challenges and uncertainties[125]. - Wesbanco has incurred significant transaction-related costs associated with the merger, which may impact short-term financial performance[129]. - Wesbanco's future profitability will depend on the success and growth of its subsidiaries, which may include acquisitions that could be dilutive to earnings per share[148]. - The company may need to raise additional capital in the future, but conditions in the capital markets may affect its ability to do so on favorable terms[150]. Technology and Cybersecurity - Wesbanco completed its core banking software conversion in 2021 to enhance operational efficiency and customer service[158]. - The bank's cybersecurity strategy includes a multi-layered approach to identify and mitigate threats, with ongoing education and incident response exercises[168]. - The company maintains backups of key processing output daily to mitigate risks associated with third-party vendor failures[157]. - Wesbanco's ability to pay dividends on common stock is limited by the outstanding Series A Preferred Stock, which requires full dividends to be paid before any common stock dividends can be declared[159].