WesBanco(US:WSBC)2026-01-28 15:00Financial Data and Key Metrics Changes - For the full year 2025, the company reported pre-tax, pre-provision earnings growth of 105% year-over-year and earnings per share (EPS) growth of 45% to $3.40, excluding merger-related charges [3][4] - The fourth quarter net income, excluding merger and restructuring expenses, was $81 million, with diluted EPS of $0.84, an 18% increase year-over-year [4][10] - The return on tangible common equity for the fourth quarter was 16%, with non-performing assets to total assets at 0.33% [5][10] Business Line Data and Key Metrics Changes - Total portfolio loans increased by 52% year-over-year to $19.2 billion, driven by both acquired loans from Premier Financial and organic growth [11] - Non-interest income for the fourth quarter was $43.3 million, a 19% increase year-over-year, primarily due to the acquisition of Premier [14] - Treasury management revenue reached a record of $6 million, with total wealth management assets under management at $10.4 billion [6][14] Market Data and Key Metrics Changes - Total deposits increased by 53% year-over-year to $21.7 billion, supported by acquired deposits from Premier Financial and organic growth [12] - The company experienced a significant increase in commercial real estate project payoffs, totaling $415 million in the fourth quarter and over $900 million for the year, which created a 4% headwind to loan growth [7][11] Company Strategy and Development Direction - The company successfully integrated the acquisition of Premier Financial, transforming itself into a $28 billion asset regional financial services partner and ranking among the top 50 publicly traded U.S. financial institutions [5][6] - Continued investment in organic growth includes opening loan production offices in new markets and launching a healthcare vertical [6][9] - The company aims to maintain a focus on relationship banking, which differentiates it from competitors [6] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit year-over-year loan growth during 2026, despite expected elevated commercial real estate payoffs [8][30] - The company expects net interest margin to remain consistent with the fourth quarter margin of 3.61% in the first quarter of 2026, with potential increases in subsequent quarters [18][49] - The effective tax rate for 2026 is projected to be between 20.5% and 21.5%, slightly higher than in 2025 [23] Other Important Information - The company redeemed $150 million of Series A Preferred Stock and $50 million of subdebt acquired for Premier during the fourth quarter [16] - The CET1 ratio improved to 10.34%, with expectations to build 15-20 basis points per quarter moving forward [17][59] Q&A Session Summary Question: Loan growth expectations and payoffs - Management expects elevated payoffs in the first half of 2026, estimating between $600 million and $800 million, but believes loan growth will remain strong due to a robust pipeline [28][30] Question: Expense guidance and branch evaluations - Management confirmed that branch evaluations will continue, with potential for additional closures not reflected in current numbers [42][43] Question: Margin outlook and factors influencing it - The company anticipates a flat margin in the first quarter, with a step-up in the second quarter due to strong deposit growth and repricing of CDs [44][46] Question: Capital deployment priorities - The company prioritizes dividends, loan growth, and buybacks, with M&A being a distant fourth [57][58] Question: Fair Value Accretion expectations - Management models about 25 basis points of fair value accretion for the first quarter, with a gradual decline over the next six years [62] Question: Deposit pipeline and costs - The deposit pipeline remains strong, with spot deposit rates slightly down at the end of December [85][86] Question: Types of loans in new markets - The types of loans in new markets are similar to legacy markets, focusing on commercial real estate, commercial and industrial loans, and healthcare [90]