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% year-over-year growth 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]. Capital and Regulatory Compliance - As of December 31, 2024, Wesbanco Bank was classified as "well capitalized" under FDIC regulations, allowing it to pay dividends without restrictions[43]. - Wesbanco's CET1, Tier 1, and total capital to risk-adjusted assets ratios were 12.07%, 13.06%, and 15.88%, respectively, all exceeding minimum requirements[57]. - Wesbanco Bank's leverage ratio was 10.35% as of December 31, 2024, indicating strong capital adequacy[57]. - The Federal Reserve requires a common equity Tier 1 capital conservation buffer of 2.5% over minimum risk-based capital requirements to avoid restrictions on dividend payments[53]. - Wesbanco's capital levels met the "well-capitalized" standards under the Federal Deposit Insurance Corporation Improvement Act of 1991 as of December 31, 2024[61]. Mergers and Acquisitions - Wesbanco completed the acquisition of Premier Financial Corp. on February 28, 2025, expanding its presence in Ohio, Michigan, Indiana, and Pennsylvania[25]. - The anticipated cost savings and synergies from the Premier Financial merger are uncertain and depend on successful integration[125]. - Wesbanco has incurred significant transaction-related costs associated with the merger, which may impact financial results[126]. Community Engagement and Philanthropy - Wesbanco provided philanthropic donations and sponsorships totaling over $1.0 million in 2024, alongside nearly 12,000 volunteer hours contributed by employees[32]. - Wesbanco has been assigned an "Outstanding" rating for community development performance by the FDIC for the period of July 2019 through November 2022, marking its eighth consecutive "Outstanding" CRA rating[84]. - Wesbanco received the "America Saves Designation of Savings Excellence for Banks" for the ninth consecutive year, recognizing its efforts to encourage savings during America Saves Week 2024[85]. - Wesbanco CDC has made over 240 loans totaling in excess of $184 million, creating over 7,100 jobs in low-income communities[86]. - In the past five years, Wesbanco originated nearly $2.4 billion in community development loans, including over $520 million in 2024[87]. - Wesbanco employees provided nearly 12,000 hours of technical assistance and financial education to over 640 organizations and schools in 2024[88]. Operational Risks and Challenges - The company faces intense competition from various financial institutions, which may impact its market share and profit potential[33][34]. - Wesbanco may face challenges in attracting and retaining banking customers due to increased competition from local, regional, and national banks, as well as financial technology companies[130]. - The company is exposed to operational risks, including reputational risk, legal and compliance risk, and the risk of fraud or theft, which could adversely impact its operations[142]. - Future acquisitions may not be successful, and integration efforts could have a material adverse effect on Wesbanco's business and financial condition[139]. - The company may not be able to expand its trust and investment services segment effectively due to competition and changing economic conditions[134]. Economic and Regulatory Environment - Economic conditions in Wesbanco's market areas could negatively impact earnings, particularly in regions affected by oil and gas price volatility[99]. - Changes in federal policies could adversely impact Wesbanco's business and its customers[100]. - Wesbanco is subject to extensive government regulation, which could increase operating costs and limit business opportunities[103]. - The financial services industry is rapidly changing, and Wesbanco's future success depends on its ability to adopt new technologies and meet customer demands[156]. Technology and Cybersecurity - The company relies on third-party vendors for processing various transactions, which poses risks to its operations and customer data security[155]. - Wesbanco's cybersecurity strategy includes a multi-layered approach to identify and mitigate threats, ensuring the confidentiality of customer information[163]. - The company has experienced cybersecurity incidents in the past but is not currently aware of any that materially affect its operations[170]. Shareholder Returns and Dividends - For the year ended December 31, 2024, Wesbanco declared cash dividends of approximately $10.1 million to preferred shareholders and $90.8 million to common shareholders[42]. - 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]. - Wesbanco's total shareholder return as of December 31, 2024, was 107.94, compared to 100.00 at the end of 2019, indicating a growth of 7.94% over the five-year period[184]. - Wesbanco's total shareholder return was lower than the Russell 2000 Index, which increased to 142.93 over the same period, indicating a relative underperformance[184].
WESBANCO REPSTG(WSBCP) - 2024 Q4 - Annual Report