WesBanco(WSBC) - 2024 Q4 - Annual Report

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$825.6 million in 2024 compared to 2023, while net interest income decreased by $3.1 million or 0.7$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$11.6 billion at December 31, 2023[209]. - Total deposits increased by $965.0 million or 7.3$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$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$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$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].