• Net Income (Q4 2024): $47.6 million, excluding merger and restructuring expenses.
• Diluted Earnings Per Share (Q4 2024): $0.71, a 29% increase year over year.
• Net Income (Full Year 2024): $146.4 million, excluding merger and restructuring expenses.
• Diluted Earnings Per Share (Full Year 2024): $2.34.
• Return on Tangible Common Equity (Q4 2024): 13%.
• Non-Performing Assets to Total Assets: 0.22%.
• Tangible Common Equity Ratio: 8.7%.
• Loan Growth (2024): $1 billion, fully funded by deposit growth.
• Total Deposits: Increased by $1 billion year over year to over $14 billion.
• Commercial Loan Growth (Q4 2024): 11% year over year, 9% sequentially annualized.
• Net Interest Margin (Q4 2024): 3.03%.
• Non-Interest Income (Q4 2024): $36.4 million, a 21% increase year over year.
• Non-Interest Expense (Q4 2024): $100.5 million, a 1% increase year over year.
• Total Assets (31 December 2024): $18.7 billion.
• Total Portfolio Loans (31 December 2024): $12.7 billion.
• Total Securities (31 December 2024): $3.4 billion.
• Allowance for Credit Losses to Total Loans: 1.10%.
• Effective Tax Rate (2025 Outlook): Expected between 17.5% and 18.5%.

• Warning! GuruFocus has detected 6 Warning Sign with ORI.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wesbanco Inc (NASDAQ:WSBC) reported strong loan growth of $1 billion, fully funded by deposit growth.
• The company achieved a compound annual loan growth rate of 9% over the past three years.
• Net interest margin improved and is expected to continue improving through 2025.
• The pending acquisition of Premier Financial Corp is on track, with regulatory approvals anticipated soon.
• Wesbanco Inc (NASDAQ:WSBC) received national accolades for stability, trustworthiness, and workplace excellence.

Negative Points

• The company experienced an increase in non-performing loans and criticized and classified assets.
• There is a potential risk of increased commercial real estate payoffs, which could impact future loan growth.
• The provision for credit losses is subject to changes in macroeconomic forecasts and credit quality metrics.
• The company anticipates modest increases in marketing and FDIC expenses to support growth.
• The merger with Premier Financial Corp could lead to integration challenges and potential cost overruns.

Q & A Highlights

Q: Can you provide details on the repricing of CDs in the second quarter and their expected impact on the net interest margin (NIM)? A: Daniel Weiss, CFO, explained that approximately $1 billion in CDs with a weighted average rate of about 4.25% are expected to reprice downward by 75 to 100 basis points. This repricing is anticipated to provide a significant lift to the margin in the second quarter, with the CDs remaining as a seven-month special.

Q: How should we think about the pro forma margin with Premier Financial, considering the current rate environment and expected Fed cuts? A: Daniel Weiss, CFO, indicated that the pro forma margin is expected to be around 345 to 350 basis points. This is based on the updated rate environment and is an improvement from the initial projection of 346 basis points at the time of the deal announcement.

Q: What are your expectations for deposit growth in 2025, and how does it relate to loan growth? A: Daniel Weiss, CFO, stated that deposit growth is expected to fully fund loan growth, which is targeted at mid to upper single digits annually. This translates to approximately $800 to $850 million in loan growth, with deposit growth expected to match this figure.

Q: Can you provide more insight into the commercial deposit growth and the impact of treasury management products? A: Jeffrey Jackson, CEO, noted that there has been significant growth in commercial deposits and treasury management fees. The bank has implemented around 40 new multi-cards, contributing to revenue growth and enabling the bank to secure additional commercial and industrial (C&I) business.

Q: Are there any updates on the Premier Financial acquisition and its expected closing? A: Jeffrey Jackson, CEO, confirmed confidence in closing the Premier Financial acquisition in the first quarter. The necessary regulatory approvals from the Fed and FDIC are in progress, with no issues anticipated.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.