WesBanco(US:WSBC)2025-05-08 21:00Financial 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].