WesBanco(US:WSBC)2026-01-28 15:02Financial Data and Key Metrics Changes - Full year pre-tax, pre-provision earnings growth of 105% year-over-year, with earnings per share increasing 45% to $3.40 when excluding merger-related charges [3][4] - Fourth quarter net income, excluding merger and restructuring expenses, was $81 million, with diluted earnings per share of $0.84, an 18% increase year-over-year [4][10] - Total assets increased 48% year-over-year to $27.7 billion, with total portfolio loans rising 52% to $19.2 billion [11] Business Line Data and Key Metrics Changes - Loan growth was fully funded by deposit growth, with total loans increasing 6% annualized from the third quarter and 5% year-over-year [8][12] - Non-interest income for the fourth quarter was $43.3 million, a 19% increase year-over-year, driven by 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 - Deposits increased 53% year-over-year to $21.7 billion, including $6.9 billion from acquired PFC deposits and $662 million from organic growth [12] - Commercial real estate payoffs totaled $415 million in the fourth quarter and over $900 million for the year, exceeding previous expectations [7][11] Company Strategy and Development Direction - The company successfully integrated Premier Financial, transforming into a $28 billion asset regional financial services partner, ranking among the top 50 publicly traded U.S. financial institutions [5][6] - Continued investment in organic growth through new loan production offices and a new healthcare vertical, optimizing financial center networks and digital banking capabilities [6][9] 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, with potential increases in subsequent quarters [19][44] Other Important Information - The efficiency ratio for the fourth quarter was just below 52%, reflecting a focus on operational efficiencies and cost control [10][16] - The CET1 ratio improved to 10.34%, with expectations to build 15-20 basis points per quarter moving forward [18][61] Q&A Session Summary Question: Loan growth expectations and payoffs - Management expects a step down in payoffs from the elevated fourth quarter number, estimating $600 million-$800 million in 2026, weighted towards the first half [28][30] Question: Details on the healthcare vertical - The healthcare vertical generated around $500 million in new loans last year and is expected to be a significant growth driver [32][33] Question: Expense guidance and branch evaluations - Management confirmed that branch closures are not reflected in current numbers, and evaluations of the branch network will continue throughout the year [42][43] Question: Margin outlook and factors influencing it - The margin is expected to remain flat in the first quarter, with a step up in the second quarter due to deposit growth and repricing of CDs [44][49] Question: Capital deployment priorities - The company prioritizes dividends, loan growth, and buybacks, with M&A being a distant fourth [59][60]