WesBanco (WSBC) Q3 2024 earnings summary

Executive summary

• Achieved strong sequential and year-over-year growth in loans and deposits, led by commercial lending and supported by new loan production offices.

• Net income available to common shareholders for Q3 2024 was $34.7M ($0.54/share); adjusted net income was $36.3M ($0.56/share), with robust credit quality and a well-capitalized balance sheet.

• Raised $200M in common equity in Q3 to support the pending Premier Financial Corp. acquisition and pay down borrowings, improving tangible common equity to 8.84%.

• Premier Financial Corp. acquisition remains on track for Q1 2025 closing, pending regulatory and shareholder approvals.

• Recognized as one of America's Greatest Workplaces for Parents and Families by Newsweek.

Financial highlights

• Total loans reached $12.5B, up 10% year-over-year; deposits were $13.8B, up 5.7% year-over-year and 12.1% annualized from Q2.

• Net interest margin for Q3 was 2.95%, stable sequentially but down 8 basis points year-over-year due to higher funding costs.

• Non-interest income for Q3 was $29.6M, down 4.1% year-over-year, mainly from lower swap fee and valuation income.

• Non-interest expense for Q3 was $99.2M, up 2% year-over-year, driven by higher operating and equipment/software expenses.

• Trust and investment services AUM reached $6.1B, up 21.7% year-over-year; broker-dealer securities account values at $1.9B, up 15.8%.

Outlook and guidance

• Net interest margin expected to improve modestly in Q4 as funding costs reprice down faster than assets.

• Management anticipates continued loan growth and deposit gathering, with further benefits from deposit campaigns and branch consolidations.

• Annual savings of $4M expected from recent branch consolidations, mostly realized in 2025.

• Premier Financial merger expected to close in Q1 2025, with integration and cost synergies anticipated but subject to execution risk.