WesBanco (WSBC) Q1 2025 earnings summary

Executive summary

• Completed acquisition of Premier Financial Corp. (PFC) on February 28, 2025, expanding assets to $27.4B and deposits to $21.3B, and elevating the bank into the top 100 U.S. banks by asset size.

• Reported a Q1 2025 net loss of $11.5M ($-0.15/share) due to a $59.4M day one provision for credit losses and $20.2M merger-related expenses; adjusted net income excluding these items was $51.2M ($0.66/share), up from $33.2M ($0.56/share) in Q1 2024.

• Achieved strong organic loan growth of 7.8% year-over-year and organic deposit growth of 6.8% year-over-year, both fully funding loan growth.

• Net interest margin rose to 3.35%, up 32 bps sequentially and 43 bps year-over-year, aided by PFC acquisition and securities restructuring.

• Retained nearly 90% of Premier employees, with positive integration and collaboration driving new growth opportunities.

Financial highlights

• Total assets grew 54.2% year-over-year to $27.4B; total loans up 57.3% to $18.7B; total deposits up 57.8% to $21.3B.

• Net interest income increased 39.1% year-over-year to $158.5M, driven by a larger balance sheet, higher yields, and $9.1M in purchase accounting accretion.

• Non-interest income rose 13.2% year-over-year to $34.7M, with gains in service charges, BOLI, and trust fees.

• Efficiency ratio improved to 58.6%, down 803 bps year-over-year and 261 bps sequentially.

• Allowance for credit losses on loans was $234M (1.25% of loans), up from $138.8M (1.10%) at year-end.

Outlook and guidance

• Management expects continued integration of PFC, with anticipated cost savings, revenue synergies, and positive operating leverage.

• Loan and deposit growth expected to continue, supported by expanded footprint and organic initiatives.

• Net interest margin anticipated to exceed 3.50% in Q2, with further organic improvement of 3–5 bps per quarter.

• Expense run rate expected in the $140M range for the remainder of 2025, with most cost saves realized by Q3.

• EPS guidance of $3.59 for 2025 (excluding merger and Day 1 provision) remains achievable.