Core Insights - WesBanco, Inc. successfully transitioned approximately 400,000 consumer and 50,000 business relationships from Premier Financial Corp., marking the largest conversion in the bank's history [1][2] - The merger, which was announced on July 26, 2024, and completed on February 28, 2025, has resulted in WesBanco becoming a regional financial services institution with over $27 billion in assets [2] - WesBanco now operates more than 250 financial centers across nine states, enhancing its regional presence and customer service capabilities [1][2] Company Overview - WesBanco has over 150 years of experience as a community-focused financial services partner, offering a comprehensive range of retail and commercial banking solutions, as well as trust, brokerage, wealth management, and insurance services [4] - As of March 31, 2025, WesBanco reported total assets of $27.4 billion, with $7.0 billion in Trust and Investment Services assets under management and $2.4 billion in securities account values [4] Community Engagement - Customer appreciation events are scheduled throughout June at the newly converted financial centers, indicating a focus on building relationships with the new customer base [3] - The WesBanco logo has been prominently displayed atop the historic downtown clock tower in Youngstown, Ohio, symbolizing the bank's commitment to its new communities [3]

Financial Performance - The company reported a net loss of $8,992,000 for the three months ended March 31, 2025, compared to a net income of $35,693,000 for the same period in 2024[12]. - Comprehensive income for the three months ended March 31, 2025, was $18,930,000, down from $27,464,000 in 2024, indicating a decline of 31.5%[12]. - The company reported a net (loss) income available to common shareholders of $(11,523) thousand for Q1 2025, compared to $33,162 thousand in Q1 2024, resulting in a basic and diluted loss per share of $(0.15)[50]. - WesBanco reported a net loss available to common shareholders of $11.5 million, or $(0.15) per share, for Q1 2025, compared to net income of $33.2 million, or $0.56 per share, in Q1 2024[165]. - The provision for credit losses totaled $68.9 million in Q1 2025, compared to $4.0 million in Q1 2024, reflecting loan growth and macroeconomic adjustments[168]. Asset Growth - Total assets increased to $27,412,383 thousand as of March 31, 2025, up from $18,684,298 thousand at December 31, 2024, representing a growth of approximately 46.7%[8]. - Total deposits reached $21,292,395 thousand, up from $14,133,717 thousand, indicating an increase of approximately 50.8%[8]. - Total loans increased to $18,917,029,000 as of March 31, 2025, up from $12,675,124,000 at December 31, 2024, representing a growth of approximately 49%[65]. - The total portfolio loans increased to $18,673,748,000, with a past due amount of $148,385,000[80]. - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $1,091,715 thousand, up from $509,669 thousand at the end of Q1 2024, marking a 114.1% increase[15]. Loan and Credit Quality - The allowance for credit losses on loans increased to $233.6 million from $130.7 million at December 31, 2024, reflecting a significant rise[68]. - The provision for loan losses for the three months ended March 31, 2025, was $68.6 million, indicating a substantial increase compared to previous periods[68]. - Non-performing loans increased to 0.44% of total portfolio loans as of March 31, 2025, up from 0.28% a year earlier[182]. - Criticized loans classified as compromised were $470.6 million as of March 31, 2025, compared to $242.0 million as of December 31, 2024, showing an increase of 94.5%[78]. - The total ending allowance for credit losses on loans and loan commitments reached $240.1 million as of March 31, 2025[68]. Acquisition Impact - WesBanco completed the acquisition of Premier Financial Corp. (PFC) on February 28, 2025, valued at $1.0 billion, with PFC holding approximately $7.9 billion in assets[31]. - The acquisition resulted in Wesbanco acquiring 73 branches and increasing its market share in Ohio, expanding into northwestern Ohio and Michigan[31]. - WesBanco's goodwill increased to $1.6 billion as of March 31, 2025, up from $1.1 billion at December 31, 2024, primarily due to the PFC acquisition which contributed $483.4 million in goodwill[95]. - The company issued stock for the acquisition of Premier Financial Corp. totaling $1,007,845 thousand, which is a significant strategic move for market expansion[15]. - The fair value of total assets acquired from PFC was $8.1 billion, while total liabilities assumed were $7.6 billion[34]. Income and Expenses - Total interest and dividend income for the three months ended March 31, 2025, was $253,232,000, an increase of 29.6% compared to $195,300,000 for the same period in 2024[10]. - Non-interest income totaled $34,665,000, an increase of 13.5% from $30,629,000 in the same quarter of 2024[10]. - Total non-interest expense surged by $36.8 million or 37.8% to $134.0 million, primarily due to $20.0 million in restructuring and merger-related expenses[192]. - The total average basic common shares outstanding increased to 76,830,460 in Q1 2025 from 59,382,758 in Q1 2024[50]. - The effective tax rate for Q1 2025 was 7.0%, down from 17.7% in Q1 2024, with a tax benefit of $0.7 million compared to a provision of $7.7 million in the prior year[171]. Investment Portfolio - The fair value of net loans as of March 31, 2025, was estimated at $18,029,036 thousand, up from $12,042,064 thousand on December 31, 2024, indicating strong loan growth[134]. - The total available-for-sale debt securities increased to $3,149,043,000 as of March 31, 2025, compared to $2,246,072,000 at the end of 2024, reflecting a growth of approximately 40%[127][128]. - The fair value of subordinated debt as of March 31, 2025, was $342,315 thousand, compared to $262,101 thousand at the end of 2024, indicating an increase of 30.6%[138]. - The total investment securities increased by $908.2 million or 26.6% from December 31, 2024 to March 31, 2025[202]. - Approximately 26% of the investment portfolio is in the held-to-maturity category, which mitigates the impact of interest rate volatility on other comprehensive income[205].

Core Viewpoint - WesBanco (WSBC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, driven largely by institutional investors who adjust their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which in turn affects stock prices [4]. WesBanco's Earnings Outlook - WesBanco is projected to earn $3.33 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 42.3% [8]. - Over the past three months, the Zacks Consensus Estimate for WesBanco has risen by 1.5%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of WesBanco to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - WesBanco (WSBC) shares have increased by 9.6% in the past four weeks, closing at $30.38, with a potential upside of 26.3% based on Wall Street analysts' mean price target of $38.38 [1] Price Targets - The average price target consists of eight estimates ranging from a low of $34 to a high of $43, with a standard deviation of $3.11, indicating a potential increase of 11.9% to 41.5% from the current price [2] - A low standard deviation suggests a higher agreement among analysts regarding the price movement of WSBC [2][9] Analyst Sentiment - Analysts are optimistic about WSBC's earnings prospects, as indicated by a trend of upward revisions in earnings estimates, which historically correlates with stock price movements [4][11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 0.8%, with two estimates moving higher and one lower [12] Zacks Rank - WSBC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential for upside in the near term [13]

Core Insights - The conference call is focused on WesBanco's first quarter 2025 earnings and includes discussions on the acquisition of Premier Financial and the company's outlook for 2025 [5]. Group 1: Company Overview - WesBanco, Inc. is conducting its first quarter 2025 earnings conference call, led by key executives including the President and CEO, Jeffrey Jackson, and the Senior Executive Vice President and CFO, Dan Weiss [3][5]. - The call will provide an update on the company's performance and strategic initiatives, particularly the recent acquisition of Premier Financial [5]. Group 2: Financial Performance - The call aims to highlight the strong financial results for the first quarter of 2025, although specific financial metrics are not detailed in the provided text [5].

Financial Data and Key Metrics Changes - For the quarter ending March 31, 2025, the company reported net income excluding merger and restructuring expenses of $51.2 million, with diluted earnings per share of $0.66, an 18% increase year over year despite a significant increase in shares outstanding due to the Premier Financial acquisition [6][14] - The net interest margin improved to 3.35%, and the efficiency ratio improved to 58.62% [6][14] - Total assets increased by 54% year over year to $27.4 billion, with total portfolio loans increasing by 57.3% [14][15] Business Line Data and Key Metrics Changes - Organic loan growth was 8% year over year and 4% quarter over quarter annualized, driven by strong performance across banking teams [10][14] - Total commercial loans increased by 10% year over year and almost 7% sequentially, with a commercial loan pipeline of approximately $1.3 billion [10][14] - Non-interest income totaled $34.7 million, a 13% increase from the prior year, primarily due to the Premier acquisition [17] Market Data and Key Metrics Changes - Total deposits increased by 58% year over year to $21.3 billion, with organic deposit growth fully funding loan growth [15][16] - Organic deposit growth excluding CDs was 4.8% year over year and 10.6% quarter over quarter annualized [15][16] - The company’s loan portfolio is diversified across a nine-state footprint, with 70% in the Mid Atlantic region [12] Company Strategy and Development Direction - The successful acquisition of Premier Financial is expected to elevate the company into the ranks of the top 100 largest U.S. banks by asset size, strengthening market position and accelerating long-term growth strategy [6][7] - The company aims to fund full-year loan growth with deposits, despite potential fluctuations quarter to quarter [9] - The focus remains on disciplined expense management to drive positive operating leverage throughout 2025 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future loan growth, supported by a strong pipeline and banking teams [14][19] - The macroeconomic environment is characterized by volatility in equity markets due to trade war threats, but the company’s diverse loan portfolio provides stability [12] - The company anticipates two Fed rate cuts in June and September but does not expect a significant impact on net interest margin due to a neutral rate-sensitive position [20] Other Important Information - The provision for credit losses was $69 million, with $59 million related to the day one non-PCD provision [15] - The allowance for credit losses increased to $234 million, raising the coverage ratio to 1.25% [16] - The company expects to recognize the bulk of remaining merger-related expenses totaling approximately $45 million in the second quarter [22] Q&A Session Summary Question: Margin outlook on an organic basis - Management anticipates roughly 4 to 6 basis points of margin improvement per quarter on an organic basis, with Premier contributing 2 to 4 basis points [24][25] Question: Clarity on expense numbers - The modeled expense run rate is in the low $140 million range for each of the next three quarters, with full cost savings expected to be realized by the fourth quarter [28][29] Question: Bond book yields and deposit costs - The bond yields were around 3.07% at quarter-end, and management expects continued reduction in deposit costs, particularly on CDs [36][38] Question: Loan growth outlook and pipeline - The loan pipeline is strong at approximately $1.4 billion, with expectations for mid to upper single-digit loan growth [80] Question: Credit quality and charge-off expectations - Management feels confident about credit metrics, with any increases in criticized loans primarily related to the Premier acquisition [58] Question: Capital management and future M&A - The company is currently in capital build mode and is focused on integrating the Premier acquisition before considering further M&A opportunities [67][68]

Financial Data and Key Metrics Changes - For the quarter ending March 31, 2025, the company reported net income excluding merger and restructuring expenses of $51.2 million, with diluted earnings per share of $0.66, representing an 18% year-over-year increase despite a significant increase in shares outstanding due to the Premier Financial acquisition [5][11] - The net interest margin improved to 3.35%, and the efficiency ratio improved to 58.62% [5][15] - Total assets increased by 54% year-over-year to $27.4 billion, with total portfolio loans increasing by 57.3% [12][13] Business Line Data and Key Metrics Changes - Organic loan growth was 8% year-over-year and 4% quarter-over-quarter annualized, driven by strong performance across banking teams [8][12] - Total commercial loans increased by 10% year-over-year, with a commercial loan pipeline of approximately $1.3 billion, of which over 25% is attributable to Premier [8][12] - Organic deposit growth was $922 million year-over-year and $285 million quarter-over-quarter, with total deposits exceeding $21.3 billion [7][13] Market Data and Key Metrics Changes - The company’s loan portfolio is diversified across a nine-state footprint, with approximately 70% in the Mid-Atlantic region [10] - The company has limited exposure to the DC market and no government contractor line of business, which mitigates risks associated with regional economic downturns [10] Company Strategy and Development Direction - The successful acquisition of Premier Financial is expected to enhance market position and accelerate long-term growth strategy [4][6] - The company aims to fund full-year loan growth with deposits, maintaining a focus on organic growth and positive operating leverage [7][12] - The company is also focused on disciplined expense management to drive positive operating leverage throughout 2025 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future loan growth, expecting mid-single-digit growth during 2025, supported by a strong loan pipeline and market conditions [8][12] - The company is closely monitoring macroeconomic factors, including potential impacts from trade negotiations and tariffs, but remains confident in its diversified portfolio [10][11] - Management anticipates two Fed rate cuts in June and September but does not expect a significant impact on net interest margin due to a neutral rate-sensitive position [19] Other Important Information - The provision for credit losses for the first quarter was $69 million, with the allowance for credit losses at $234 million, reflecting a coverage ratio increase to 1.25% [14][15] - Non-interest income totaled $34.7 million, a 13% increase from the prior year, primarily due to the Premier acquisition [16] Q&A Session Summary Question: Margin outlook on an organic basis - Management anticipates roughly 4 to 6 basis points of margin improvement per quarter on an organic basis, with Premier contributing to a slight reduction in that range [23][24] Question: Clarity on expense run rate - The expected expense run rate is in the low $140 million range for each of the next three quarters, with full cost savings expected to be realized by the fourth quarter [27][28] Question: Bond yields and deposit costs - The bond yields were approximately 3.07% at quarter-end, and management expects continued reduction in deposit costs, particularly on CDs [35][36] Question: Loan growth outlook and pipeline - The loan pipeline is strong at approximately $1.4 billion, with expectations for mid to upper single-digit loan growth, despite some pullbacks due to tariffs [80][81] Question: Credit quality and charge-off expectations - Management remains confident in credit metrics, with any increases in criticized loans primarily related to the Premier acquisition [56][58] Question: Capital management and deployment - The company is currently in capital build mode and is focused on digesting the Premier acquisition before considering further M&A or buybacks [68][70]

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]