WesBanco(US:WSBC)2025-11-10 21:28Financial Performance - Net income for the three months ended September 30, 2025, reached $83,573 thousand, compared to $37,272 thousand for the same period in 2024, marking a growth of 124.0%[11]. - For the nine months ended September 30, 2025, net income reached $131,995,000, compared to $101,881,000 in 2024, marking a 29.5% increase[16]. - Comprehensive income for the three months ended September 30, 2025, was $108,548 thousand, compared to $90,676 thousand for the same period in 2024, an increase of 19.7%[12]. - Total revenues for the three months ended September 30, 2025, were $259,498 thousand, with a segment profit of $83,573 thousand[160]. - Total revenues for the nine months ended September 30, 2025, reached $641,307,000, with non-interest income at $23,874,000[170]. Asset Growth - Total assets increased to $27,518,042 thousand as of September 30, 2025, up from $18,684,298 thousand at December 31, 2024, representing a growth of 47.0%[9]. - Total deposits rose to $21,284,262 thousand as of September 30, 2025, up from $14,133,717 thousand at December 31, 2024, an increase of 50.9%[9]. - Total loans increased to $19,058,045,000 as of September 30, 2025, compared to $12,675,124,000 at December 31, 2024, indicating a growth of 50.1%[75]. - Cash, cash equivalents, and restricted cash at the end of the period reached $1,008,237,000, up from $620,897,000 at the end of the same period last year, marking a 62.4% increase[18]. Income and Expenses - Net interest income for the three months ended September 30, 2025, was $216,716 thousand, a 79.0% increase from $121,142 thousand in the same period of 2024[11]. - Non-interest income for the nine months ended September 30, 2025, was $123,486 thousand, a 34.7% increase from $91,596 thousand in the same period of 2024[11]. - Total non-interest expense for the nine months ended September 30, 2025, was $476,689 thousand, up from $300,768 thousand in the same period of 2024, reflecting a 58.5% increase[11]. - Non-interest income for Q3 2025 increased by $15.3 million or 51.5% compared to Q3 2024, largely due to the acquisition of PFC and increased consumer spending[188]. Credit Losses and Provisions - The provision for credit losses for the nine months ended September 30, 2025, was $74,183 thousand, significantly higher than $19,352 thousand in the same period of 2024[11]. - The total provision for credit losses was $2.1 million in Q3 2025, down from $4.8 million in Q3 2024, indicating improved credit quality[187]. - The total allowance for credit losses for loans and loan commitments at September 30, 2025, is $138,766 thousand, an increase from $130,675 thousand at December 31, 2024[78]. Acquisition Impact - Wesbanco completed the acquisition of Premier Financial Corp. on February 28, 2025, valued at $1.0 billion, with PFC holding approximately $7.9 billion in assets[38]. - The issuance of common stock for the acquisition of Premier Financial Corp. amounted to $1,007,845,000, significantly impacting the capital structure[16]. - The acquisition resulted in Wesbanco issuing 28,738,104 shares, with PFC shareholders owning about 30% of Wesbanco's voting interests post-acquisition[38]. - Wesbanco's goodwill increased to $1.6 billion as of September 30, 2025, from $1.1 billion at December 31, 2024, primarily due to the PFC acquisition[105]. Shareholder Returns - The company declared dividends of $0.37 per common share for the three months ended September 30, 2025, compared to $0.36 in the same period of 2024[11]. - Common dividends declared were $35,229,000 ($0.37 per share) for the three months ended September 30, 2025, compared to $23,849,000 ($0.36 per share) in 2024, reflecting a 47.7% increase in dividends[14]. - Dividends paid to common shareholders increased to $94,918,000, up from $63,568,000, indicating a 49.3% increase in shareholder returns[18]. Loan Performance - Non-performing loans were 0.50% of total portfolio loans as of September 30, 2025, up from 0.24% at September 30, 2024[202]. - The total amount of classified loans as substandard is $175.648 million as of September 30, 2025, compared to $112.669 million as of December 31, 2024, indicating an increase of approximately 55.9%[88]. - The total amount of unfunded commercial loan commitments is $26.7 million as of September 30, 2025, compared to $36.1 million as of December 31, 2024, reflecting a decrease of approximately 26.5%[88]. Market and Economic Conditions - The effective tax rate for the first nine months of 2025 was 19.8%, up from 17.3% in the same period of 2024, reflecting increased pretax income[190]. - The company anticipates net pre-tax savings of approximately $6 million from its financial center optimization strategy, with closures of 27 locations expected to be completed by January 2026[182]. - The company reported a total loss of $1.346 million from derivative financial instruments for the three months ended September 30, 2025, compared to a loss of $2.331 million for the same period in 2024[118].